What is the advantage in opening today?

Pastmaster

I don't have a cash isa but intend opening for next financial year. Is there any advantage in opening before 5 April? if so, what is it?
There surely can't be much interest gained in a few days.

grumbler

pastmaster wrote:

I don't have a cash isa but intend opening for next financial year. Is there any advantage in opening before 5 April? if so, what is it?
There surely can't be much interest gained in a few days.

The only advantage is if you have more than £3000 to invest at the moment. You can put up to £3000 before and up to £3000 after. In this case you can earn tax-free interes on up to £6000 during the next year etc... If you lose current year allowance you can not add corresponding £3000 later.

EDIT: I admit that Kazza242 below explained this better than me...

Kazza242

It depends on how much money you've got available to put into an ISA. If you already have £3,000 now (or indeed any reasonable sum) that you could deposit in an ISA, then it would be a good idea to open an ISA this tax year (by April 5). That way, from April 6, you get another £3,000 allowance and you would have the whole tax year (until April 5 2006) to build up to the £3,000 limit allowed for the year.

Paul_Varjak

I agree the above two posters. Also remember though, if you put into a cash ISA this year (up to £3,000) you still leave open your options next year; i.e. you could open another ISA next year, that is up to another £3,000 in a cash ISA, or up to £7,000 is a Maxi ISA.

Hobo_2

Britannia BS," beat the deadline 5April for 04/05" but this ad is for their regular saver cash ISA = per mth min £20 max £250! in todays Sunday Express

I always thought you could not pay any more in when that allowance year ended so thats why people bung £3K in just before deadline

Am i wrong, so you can open & drip feed in 04/05 for 12mths but open also an 05/06 ISA

grumbler

Hobo wrote:

Am i wrong, so you can open & drip feed in 04/05 for 12mths but open also an 05/06 ISA

If you open it in 04/05 you can keep on paying into it in 05/06. However, you cannot open another one and pay in both of them! Hence, £3000 restriction is still in force.

cheerfulcat

That's really sort of sneaky of the Britannia, isn't it?

Hobo_2

H,mm Sneaky maybe, but after visiting their site i can see an advantage for some people eg :- cash tied up elseware but don`t want to loose 04/05 allowance open & pay min per mth £20 cos they allow you to make 1 payment after the 12 to top up to max £3k.
Then you would have to be quick to take out 05/06 at that year end

Best bet for anyone in that situation is the Halifax ISA saver direct, open with £1 deposit + top up anytime 5.15% var

cheerfulcat

Hobo wrote:

H,mm Sneaky maybe, but after visiting their site i can see an advantage for some people eg :- cash tied up elseware but don`t want to loose 04/05 allowance open & pay min per mth £20 cos they allow you to make 1 payment after the 12 to top up to max £3k.
Then you would have to be quick to take out 05/06 at that year end

Best bet for anyone in that situation is the Halifax ISA saver direct, open with £1 deposit + top up anytime 5.15% var

But any contribution you make after 5 April will count towards the 05/06 allowance, regardless of when you opened the account.

Hobo_2

Oh right thanks cheerfulcat, so its £3k now or loose it

deemy2004

Be careful with the Britiania BS

You could be locked into an cash isa with them permanently ! I.e. open in May, then 12 months takes you into the NEXT tax year, so you cannot open another one elsewhere, another 12 months and the same !

If you would want to escape from Britania you would have take a painful 3% hit !