New ISA question

aRaven

Hey, I'm new to the whole ISA thing and have just opened a new ISA today with Santander, 4% fixed for 2 years.

Forgive me if these are silly questions, but I deposited the maximum £5340.00 today when I opened the ISA. Have I done something silly and should have waited for the 6 of April 2012 to deposit that sum? Or is there not a difference?

When am I next allowed to deposit more money into the ISA again?

Thanks

gustav

You did the right thing.
If you had waited until the new tax year, you wouldnt have been allowed to put in any more until 2013.
You now have the option of making further deposits during the 2012/13 tax year.

G

badger09

aRaven wrote: »

Hey, I'm new to the whole ISA thing and have just opened a new ISA today with Santander, 4% fixed for 2 years.

Forgive me if these are silly questions, but I deposited the maximum £5340.00 today when I opened the ISA. Have I done something silly and should have waited for the 6 of April 2012 to deposit that sum? Or is there not a difference?

When am I next allowed to deposit more money into the ISA again?

Thanks

Are you 100% certain your ISA is for 2011/12?

If so, as long as you haven't already paid anything into a cash ISA since 6th April 2011, you've done exactly the right thing.

In this particular ISA, you can add a further £5640 between 6th & 14th April 2012. If you don't have that much available, you'd be better opening an instant access ISA on or after 6th April, which allows you to pay in as and when you can afford to -subject to £5640 limit.

dtsazza

badger09 wrote: »

Are you 100% certain your ISA is for 2011/12?

If the money has already been paid in, then it has to be.

badger09

dtsazza wrote: »

If the money has already been paid in, then it has to be.

Not necessarily.

Many (most?) banks have now closed applications for new 2011/12 cash ISAs, but are accepting applications for 2012/13.

I'm fairly sure the deadline for 2011/12 Santander 2 Year Fixed Rate ISA was 1st April.

OP's paperwork should clarify which year has been opened.

lisyloo

but are accepting applications for 2012/13.

There is no such thing as "applications" for 2012/13.
Subscriptions happen in a particular tax year.
You cannot pay money in for 2012/2013 right now although you may be able to open an account in advance.

badger09

lisyloo wrote: »

There is no such thing as "applications" for 2012/13.
Subscriptions happen in a particular tax year.
You cannot pay money in for 2012/2013 right now although you may be able to open an account in advance.

Thank you for your 'clarification'

I am aware of the correct terminology.

You can make an 'Application' now to open a 2012/13 ISA but cannot 'Subscribe' until 6th April.

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&canal=CABBEYCOM&cid=1237908316644&empr=Abbeycom&launch=NO&leng=en_GB&page

Which part of my post do you think was wrong?

lisyloo

Which part of my post do you think was wrong?

This part

Many (most?) banks have now closed applications for new 2011/12 cash ISAs, but are accepting applications for 2012/13.

Specifically the part that says "applications" are for a specific year.

In general if I open an account today e.g. at a branch, I can EITHER choose to put money in before midnight 5th April and have the subscriptions apply to 2011/2012 or I can decide to wait until 6th April and have the subscription apply to 2012/2013 OR I could actually do both.
The ISA is not applicable to a particular year it's the subscriptions that are.

There may be a few individual companies that are restricting deals to particular timescales but this is not generally the case.
In general cash ISAs do not apply to a specific year.
I accept that you have found an exception.

badger09

lisyloo wrote: »

This part

Specifically the part that says "applications" are for a specific year.



There may be a few individual companies that are restricting deals to particular timescales but this is not generally the case.
In general cash ISAs do not apply to a specific year.
I accept that you have found an exception.

Random sample of further exceptions

http://www.theaa.com/savings/access-isa.html
(Yellow box)

http://www.nationwide.co.uk/savings/cash_isa/onlineisa/apply.htm
(1st text box)

http://www.thecheshire.co.uk/ISAs/Direct-Cash-ISA/
(1st Key Feature)

lisyloo

Ok, I accept what you are saying.
But the point I am making (for clarification, not to be confrontational :-) is that these are specific restrictions by specific lenders.
It is not part of the ISA (Inland Revenue) rules that an ISA applies to a specific tax year.

Is that ok? :-)

badger09

lisyloo wrote: »

Ok, I accept what you are saying.
But the point I am making (for clarification, not to be confrontational :-) is that these are specific restrictions by specific lenders.
It is not part of the ISA (Inland Revenue) rules that an ISA applies to a specific tax year.

Is that ok? :-)

Cheers

Also, not trying to be confrontational , but the linking of the ISA 'Application' to a specific tax year is now very common, so will be me encountered by many.

I know its not part of HMRC rules - I was a Senior Tax Inspector - escaped in 2006 after 35 years [STRIKE]life sentence[/STRIKE] devoted service :rotfl: