2Yr 4%ISA fed from 1year fixed saver on 11th hour of 1st year ISA anniversary.

DeltaL

Here's what I'm thinking.

1. Open and fund a fixed rate 1 year Aldermore savings account with £5640 or more.
2. Open but don't fund* a 2 year 4% Santander ISA for 2012/13. Just lay claim to the account.
3. Wait for a year for Aldermore1 year fixed to mature and transfer to unfunded Santander ISA. As I understand it the money should be deposited a week before the first year anniversary of the Santander ISA in order to get the qualify for 1st of the 2 year 4% ISA interest*.
4. Leave the money in the 4% Santandar ISA to complete the full two year term.
5. Open a new ISA in another bank/bs for 2013/14.

I'm not sure when ISA money will become old transferable money though.

* That's the tricky part really. When I open the 4% two year ISA will I have the option to fund it at >>>>anytime<<< during the first year?

I got this idea in my head funnily enough because I nearly missed funding my old ISA this year. I'd done the transfer but forgot to actually fund it at the time. It totally slipped my mind and I couldn't check the ISA account online. So popped down to the local Hfax and they told me I hadn't actually made a deposit this year :-O!!!!!!!!!!!! Told them there and then to transfer the max ISA deposit with two days left before the bonus offer ran out and the interest rate dropped to 0.5%. Got the bonus and the interest. And in a few days time the money will be classed as old money and transferable having only been in the account for about a week. Well I hope so anyway.
And that's when this idea hit me that I've had this years ISA deposit money sitting in a crap interest rate savings account all this time. Why don't I just lock it away for a year and earn some money from it before I put it in an ISA!

Do you guys and girls think it'll be possible make the opening deposit on the eleventh hour of the 1st year of the Santander 2 year fixed ISA accounts anniversary or will they refuse it? I did it with my Hfax account so I'm sure I can do it with the Santander ISA.

Been thinking about popping down to Santander just to lay claim to an 4% 2 year ISA but thought I run this idea pass you lot first.

What do you think?

evenasus

I think you missed this bit...

What you need to do:
To apply
• You need to be aged 16 or over and be a UK resident.
• Be able to make your initial deposit/transfer in request within 14 days of account opening. We will then do the rest.
• Have your National Insurance Number to hand.
Transferring from other cash ISAs
• Cash ISA transfer in applications must be received within 14 days of opening

evenasus

DeltaL wrote: »

3. Wait for a year for Aldermore1 year fixed to mature and transfer to unfunded Santander ISA. As I understand it the money should be deposited a week before the first year anniversary of the Santander ISA in order to get the qualify for 1st of the 2 year 4% ISA interest*.

Are you thinking that money in a savings account for a week will get the whole year's interest of 4%?

DeltaL

evenasus wrote: »

I think you missed this bit...

Oh pants...:-(

Thanks for the reply.

Think I'll try looking around for another fixed ISA that hasn't got that limitation or use a refreshed old money ISA account then.

evenasus

DeltaL wrote: »

Oh pants...:-(

Thanks for the reply.

Think I'll try looking around for another fixed ISA that hasn't got that limitation or use a refreshed old money ISA account then.

Never mind - would be nice if it were possible.

DeltaL

evenasus wrote: »

Are you thinking that money in a savings account for a week will get the whole year's interest of 4%?

I'm thinking that the money will stay in Aldermore fixed savings account for a year, let it mature then shift to Santander ISA. But that won't work as it has been kindly pointed out that the deposit has to be made in the first 14 days.

I managed to get the interest+bonus from my Halifax ISA in the last week without actually depositing any new money in all year. I only deposited this years new money two days before the anniversary date of the original transfer of old money to the new account which was on the 29th March 2011. Will have to take a closer look at the conditions of my current ISA account.