End of 06/07 Financial Year Mini Cash ISA Discussion Area

jay213

Im new to these ISA/mini ISA.

I have not had any ISAs before.

I bank with halifax. I dont need a current account ar anything with barclays to set up a ISA with them do I ?

If I wanted to open the Barclays one in the next few days and put 3k into it for the 06/07 tax year. Would the account continue to be active into the 07/08 tax year without me having to apply again? if yes, then would I just deposit my next 3k into it and then at the end of 07/08 tax year I would get interest on 6k at 6.5%.

Edit: I just seen the following on there website

"Transfers from an existing ISA, either with us or with another ISA provider, are not allowed." Does that mean I couldnt do what I was hoping to do above? open one for 06/07 now & then continue into 07/08


Also Im just wondering about the following. I have 10k in a savings account. Would it be silly to take this money out now and put it in to an ISA ? e.g I say silly as in, would I lose my interest that I have already built up with it by taking it out before I get the interest?

meanscot

I have an A&L Issue 2 mini cash ISA (608) which is paying 5.7% Annual Gross (5.17% AER) until 30/4/2007. This includes a bonus of 0.7% . This is a closed issue savings account. I have over 9K here.

I am looking to move to another cash ISA for 2007/2008 which will allow me to transfer in all my 9K and have no penalties for cash withdrawal and give me a better return than what is on offer from A&L.

Or perhaps keep the 9K with A&L and start another mini cash ISA with another provider who will give me a good rate but will not perhaps let me transfer in any money from other ISAs - but still not charge for withdrawals.

I notice Abbey are offering a direct ISA at 5.75% AER/Gross for over 9K - anyone with Abbey ?

Any suggestions or should I stick with A&L.


meanscot

Casciana

Can anyone answer what may be very basic queries regarding mini cash Isa's:-
1. If you payed, for example, £2000 into an ISA and then withdraw for example,£1000 are you still able to pay in the remaining £1000 which would make up your annual entitlement, within the same financial year?
2. If you wish to switch to another provider at the beginning of a new finacial year but they don't allow transfers from existing Mini Cash ISA's can you just let your existing account remain and pay into new one from thereon?
Thanks to all, x

TheDink

Casciana wrote: »

Can anyone answer what may be very basic queries regarding mini cash Isa's:-
1. If you payed, for example, £2000 into an ISA and then withdraw for example,£1000 are you still able to pay in the remaining £1000 which would make up your annual entitlement, within the same financial year?
2. If you wish to switch to another provider at the beginning of a new finacial year but they don't allow transfers from existing Mini Cash ISA's can you just let your existing account remain and pay into new one from thereon?
Thanks to all, x

1. Yes
2. Yes - you just leave the previous year's ISA sitting there without making any further payments into it.

masonic

meanscot wrote: »

Any suggestions or should I stick with A&L.

Don't stick with A&L - transfer! Abbey are one option. There are a few others with very similar rates. You can also open an ISA for 2007/8 with someone else, e.g. NS&I or Barclays, who pay higher rates but don't accept transfers.

optimist_2

Hello,

A bit confused about the rate of interest that is actually applied if you invest in a Barclays Tax Beater ISA. The headline rate says 6.5% (6.3% tax free). So which is it, 6.5% or 6.3%? This is obviously important when comparing with NS&I's 5.8%.

Thank You!

jem16

The 6.3% applies if you take the monthly interest and don't keep that interest within the ISA. If you keep the interest within the ISA it's 6.5% because of the effect of the compund interest.

So basically it's 6.5%.

Dot

Nobody appears to have answered Sanfrancisco's query of 19th March so, if it is not too late.......

You complete the forms online and give a debit card payment which comes out straight away. They then send you a form to sign (by snailmail) and return within a specified time. Once you have returned this the account is opened but from the day you originally completed the online form.

Hope this helps and is not too late for you.

Dot

Can anyone tell me if a maturing TESSA only ISA is the same as a mini cash ISA? I have one which has just finished and want to know if I can transfer it into, say, the Abbey Direct ISA

masonic

As far as I'm aware, the receiving bank will not be able to tell the difference. You are certainly allowed to transfer into a standard cash ISA under the ISA rules.