ISA Fixed rate-confused

Tat111

Hello,
I am thinking about opening an fixed rate ISA account, can I open it and just put in the minimum of ie £1, don't put anything in untill april 2013? If so am I correct in thinking I have to open account which pays yearly not monthly, also some of the account like ie Metro bank has Closure penalty:180 days interest and it says "If your account has earned less than180 days interest then your original deposit will be returned to you in full, with no interest"
Does that mean if I open an Isa account which is less than 180 days old I can get my money out with no penalty(if I need to )?
Thank you
Tatiana

jimjames

If you have the money why would you not put it in the ISA where it can grow tax free? If you don't have the money then only putting in £1 is fairly pointless as you cannot add to it after April 2013.

On your original question it depends on the T&Cs. Some restrict payments to the first 14 days after opening, if you look on the forum you'll see complaints from people who have been unable to add to their ISA.

Tat111

Hi JimJames,

I know it sounds confusing, but what I was planning to do is open Fix rate Isa account, put the minimum balance in ISA, keep the rest of the money(in case I will need them-otherwise if I take it out I might get charged on withdrawalls (T &C) and put the full amount in in April- if the bank is counting the interests yearly...does that make sense,risk free? ish?

ViolaLass

Tat111 wrote: »

Hi JimJames,

I know it sounds confusing, but what I was planning to do is open Fix rate Isa account, put the minimum balance in ISA, keep the rest of the money(in case I will need them-otherwise if I take it out I might get charged on withdrawalls (T &C) and put the full amount in in April- if the bank is counting the interests yearly...does that make sense,risk free? ish?

The interest will be applied yearly, not calculated once a year according to the balance in the account on that day.

I also would have thought that a fixed rate ISA will not allow you to make further deposits after the initial one.

Tat111

Hi ViolaLass,
so why some of the accounts say interest paid annualy or monthly?
Some accounts allow you to take out money out once or twice free of charge.
Thank you

ViolaLass

Tat111 wrote: »

Hi ViolaLass,
so why some of the accounts say interest paid annualy or monthly?

Because some pay it monthly and some pay it annually. They still calculate it daily (usually).

Being allowed to take money out is not the same as being allowed to deposit it.