NS&I question

Reiky_2

Hi! I got a NS&I Direct ISA in May 2006 and looking forward to do the same in April 2007 as soon as it is possible.

My question is: with NS&I will I put the new money on the same Direct ISA I got last year? I mean: will I have a Direct ISA with 6000 pounds (3000 last year, 3000 this year)? If so will I get tax-free intereste on the whole sum or just on the "new" 3000?

Thanks in advance

Mr_Mumble

Hi Reiky, welcome to the MSE forums!

Yes to every query .

You'll put the money into the same account and have more than £6000 (remember the interest!) if you've fully subscribed both years. Tax-free interest accumulates every year, on the total.

Reiky_2

Mr_Mumble wrote:

Hi Reiky, welcome to the MSE forums!

Thanks!

Mr_Mumble wrote:

You'll put the money into the same account and have more than £6000 (remember the interest!) if you've fully subscribed both years. Tax-free interest accumulates every year, on the total.

Cool! Yes I did put 3000 in May 2006 when I opened the account and I'm planning to put another 3000 in April as soon as ne new year starts.

You are so kind I'm gonna abuse of it ;-) Do I need to inform NS&I that I want to carry on or I simply log into my NS&I web account and add money to it?

Thanks again!

nilocmac

No you don't need to inform them just log on and add more funds. If you miss a year then I think you may have to contact them (although I am not 100% sure about that and anyway is not relevant to you).

robbo_monkey

Hi all,

Mrs R_M and i are looking to get this ISA. Sorry for the silly question, but can we take out more than one ISA in our joint names per year? As we're not married yet, we feel that our joint savings should be in our joint names to avoid confusion if...

Many thanks

R_M

tom188

ISAs are Individual Savings Accounts. You can only hold them individually, you are not allowed joint accounts.

robbo_monkey

so it was a silly question then

Than you!

edda

It's worth checking the interest rates on ISAs on 6th April.
Don't assume because NS&I had the best rate on 6/4/06 they will also be the best on 6/4/07.

powerbase

A another silly NS&I question: is the interest calculated monthly and then paid at the end of the tax year? Reason being I will need to withdraw a large sum from the ISA around Oct (not everything but some) and was wanting to know would I earn interest from the new tax year until October? Just thinking do I need to keep my money in for the full tax year to get the interest. If so I'll move the money somewhere else from April to Oct.

Froglet

Whether you have the interest paid monthly,or calculated at the end of the tax year,makes no difference.You will get interest from the time you deposit the money to the time you withdraw it. If you withdraw some of it in October,you will still not know how much interest you have accrued to that date,until the end of the year.Only if you were to withdraw it all and close the account would you get the interest added on there and then.

powerbase

Froglet wrote:

Whether you have the interest paid monthly,or calculated at the end of the tax year,makes no difference.You will get interest from the time you deposit the money to the time you withdraw it. If you withdraw some of it in October,you will still not know how much interest you have accrued to that date,until the end of the year.Only if you were to withdraw it all and close the account would you get the interest added on there and then.

Thanks it wasn't really about getting the interest paid monthly but calculated monthly. I was worried it was one of these things you have to have the money in there for a full year to get the interest (some things I've noticed have a disclaimer that if you remove money before a full year you lose out) but if it's calculated monthly and paid yearly that's OK then.

Thanks