Cash ISAs: The Best Currently Available List

flaneurs_lobster

benny5 said:

flaneurs_lobster said:

benny5 said:

If an ISA is opened, partially funded, then closed within the ’cooling off’ period can another ISA be opened in the same financial year? This is further complicated by the fact I’ve now been paid interest (£2.30) for the brief period the ISA existed.

You can open and fund (or not) as many as you like, subject to the rules that individual providers might impose on their account holders.

Its this statement on an application form that prompted the question;

Under UK law, you can only pay into one cash ISA each tax year, either with us or another ISA provider.

It's not been updated since the Law(? is it not HMRC regulations?) was changed for this tax year. Some institutions won't allow you to have more than 1 cash ISA with themselves (for their own reasons). Some ask you to declare that you will not open (or have not opened) other cash ISAs elsewhere. You can agree to this, or not.

schiff

benny5 said:

If an ISA is opened, partially funded, then closed within the ’cooling off’ period can another ISA be opened in the same financial year? This is further complicated by the fact I’ve now been paid interest (£2.30) for the brief period the ISA existed.

The point about interest arises for me too. I've switched one CY account already and been credited with interest (small amount) and will be switching another shortly. It intrigues me how the interest is treated viz a viz the £20K limit. Ignored, or it counts?

benny5

schiff said:

benny5 said:

If an ISA is opened, partially funded, then closed within the ’cooling off’ period can another ISA be opened in the same financial year? This is further complicated by the fact I’ve now been paid interest (£2.30) for the brief period the ISA existed.

The point about interest arises for me too. I've switched one CY account already and been credited with interest (small amount) and will be switching another shortly. It intrigues me how the interest is treated viz a viz the £20K limit. Ignored, or it counts?

Rightly or wrongly, I look at it as the Max is £20K. But then I'm investing 'new money'.

Bobblehat

VM 1YR Fix ISA Issue14 (NLA)

I must give Virgin a thumbs up for speedily transferring in my Coventry LIM ACC ISA today ... in less than 24 hours of me opening the VM Issue 14 yesterday! No problem with having previous years of contributions plus £20K of this years contribution in the Coventry ISA, all done very easily online, including the application for the VM ISA!

Looks like I timed it well ... Coventry ISA drops to 4.7% on 02/09 and the Virgin ISA Fixed at 5.05% 😊

SacredStephan

flaneurs_lobster said:

It's not been updated since the Law(? is it not HMRC regulations?) was changed for this tax year.

The Individual Savings Account (Amendment) Regulations 2024

UK Statutory Instruments 2024 No. 350

https://www.legislation.gov.uk/uksi/2024/350/note/made 

Growingold

benny5 said:

If an ISA is opened, partially funded, then closed within the ’cooling off’ period can another ISA be opened in the same financial year? This is further complicated by the fact I’ve now been paid interest (£2.30) for the brief period the ISA existed.

I  did the same thing closed within the cooling off period and withdrew the funds although there was no interest.  I was advised by the lady on the phone that the money had lost its ISA wrapper so I guess my remaining ISA allowance for this year is £20,000 less what I withdrew even though it was within the cooling off period.

flaneurs_lobster

Growingold said:

benny5 said:

If an ISA is opened, partially funded, then closed within the ’cooling off’ period can another ISA be opened in the same financial year? This is further complicated by the fact I’ve now been paid interest (£2.30) for the brief period the ISA existed.

I  did the same thing closed within the cooling off period and withdrew the funds although there was no interest.  I was advised by the lady on the phone that the money had lost its ISA wrapper so I guess my remaining ISA allowance for this year is £20,000 less what I withdrew even though it was within the cooling off period.

So the advice given would mean that if £20k were added to a new ISA and withdrawn within the cooling-off period then that year's ISA allowance is no longer available? Seems harsh. 

badger09

Growingold said:

benny5 said:

If an ISA is opened, partially funded, then closed within the ’cooling off’ period can another ISA be opened in the same financial year? This is further complicated by the fact I’ve now been paid interest (£2.30) for the brief period the ISA existed.

I  did the same thing closed within the cooling off period and withdrew the funds although there was no interest.  I was advised by the lady on the phone that the money had lost its ISA wrapper so I guess my remaining ISA allowance for this year is £20,000 less what I withdrew even though it was within the cooling off period.

It is not uncommon, but ‘the lady on the phone’ is wrong. 

If you cancel an ISA within the cooling off period, it is treated as if it never existed. You therefore still have your full £20k allowance (less what you might have subscribed elsewhere). Because it is treated in this way, any interest credited is taxable. 

surreysaver

2010 said:

PRAISETHESUN said:

2010 said:

2010 said:

VM the current 1yr exclusive @ 5.05% must be due to be cut given the nearest rival is down at 4.70% and others have cut lower,
The current 5.05% has a maturity of 29/8/25.
So it could be cut after this comng Thursday.

Pulled, now at 4.75%. issue 15

https://uk.virginmoney.com/savings/products/1_year_fixed_rate_cash_isa_exclusive_issue_15/

Issue 14 will have 30 days from today then to make any remaining deposits

And AFAIK, six weeks for any transfers in from other providers.

I've got a fixed Virgin maturing on 30th September. Does this mean I will or won't be able to transfer it to my Issue 14 upon maturity?

2010

surreysaver said:

2010 said:

PRAISETHESUN said:

2010 said:

2010 said:

VM the current 1yr exclusive @ 5.05% must be due to be cut given the nearest rival is down at 4.70% and others have cut lower,
The current 5.05% has a maturity of 29/8/25.
So it could be cut after this comng Thursday.

Pulled, now at 4.75%. issue 15

https://uk.virginmoney.com/savings/products/1_year_fixed_rate_cash_isa_exclusive_issue_15/

Issue 14 will have 30 days from today then to make any remaining deposits

And AFAIK, six weeks for any transfers in from other providers.

I've got a fixed Virgin maturing on 30th September. Does this mean I will or won't be able to transfer it to my Issue 14 upon maturity?

I would say you will.
VM will contact you before maturity to give you your options anyway, and that`s the time to tell them to transfer it to issue 14.