Screwed up my ISA allowance :( PLS help.

innovate

Colin297 wrote: »

They seem pretty explicit on that requirement tbh.

Believe me, you do not have to pay £1.5K, or have 2 DDs, in order to be eligible for the FD Regular Saver.

You just have to read all their conditions to find out.

Trentenders

innovate wrote: »

Believe me, you do not have to pay £1.5K, or have 2 DDs, in order to be eligible for the FD Regular Saver.

You just have to read all their conditions to find out.

I was going to say that this isn't a very helpful post, but it might help the OP get into a habit of reading small print lol.

To get the current account for free, you need to openone of thier savings accounts also and deposit at least £1 in there :eek:

FD are beign a bit stricter with their acceptance criteria,so there is no guarantee that they'll let you have an account unless your credit rating is OK.

Best of luck with the saving :beer:
P.S. Don't be fooled by brand names, such as the Post Office, Tesco, et al. They are just banks offering thier products using someone else's name to sell them (IIRC the Post Office products are from the Bank of Ireland - their credit card certainly is).

innovate

Trentenders wrote: »

I was going to say that this isn't a very helpful post, but it might help the OP get into a habit of reading small print lol..

Or - God forbid - they might start searching the forum for answers to questions. In the process, they might even find answers to questions that didn't even know they had.

Of course, there are always other MSEers who come to the rescue and spoon-feed the lazy posters.

(Rant over)

Colin297

Innovate - you could have just pointed us to your sig....no need for the rant

psychic_teabag

Colin297 wrote: »

3) Should i consider using it for my ISA stocks and shares allowance instead?

If you transfered the (whole) cash ISA to S&S ISA, that would clean the slate WRT cash ISA. So you could then start a new cash ISA with the full allowance.

You could withdraw some or all of the cash from the S&S ISA without ever investing it if you didn't want this much in S&S. (But couldn't put any more into it.)

jimjames

psychic_teabag wrote: »

If you transfered the (whole) cash ISA to S&S ISA, that would clean the slate WRT cash ISA. So you could then start a new cash ISA with the full allowance.

You could withdraw some or all of the cash from the S&S ISA without ever investing it if you didn't want this much in S&S. (But couldn't put any more into it.)

Really?

If you have already used up your cash allowance can you really transfer it to S&S and then add the same amount of cash again? I thought the rule was that you can't transfer back from S&S to cash and this would appear to be a way round it.

psychic_teabag

That's my understanding of the rules - if you transfer from cash ISA to S&S ISA, the money is treated as if it had always been S&S ISA money.

This isn't really transferring back from S&S to cash ISA, because you are consuming part of the allowance. It's just that you might not otherwise have used the S&S part of the allowance, so you might not mind.

Before transfer, 5680 of 11360 allowance used - all cash element used
After transfer, 5680 of 11360 allowance used, all as S&S money
After withdrawal as cash, you've still used 5680 of the (S&S) allowance.
After deposit into new cash ISA, all 11360 of allowance used.

http://en.wikipedia.org/wiki/Individual_Savings_Account#Transfer_rules
http://www.moneywise.co.uk/news/2009-09-25/could-you-cash-isa-loophole

But it's a bit of a low trick since you are causing the S&S provider to incur some costs setting up an ISA that you don't intend to use.

jimjames

Thanks for the info, very useful. That link also has another option that might be applicable

HMRC gives the example of Mrs Cooper, who put £3,000 into a cash ISA with her bank on 20 April 2008. She closed the account on 30 November 2008, before opening a second cash ISA with another bank on 3 December 2008.

Despite technically having opened two cash ISA within the same tax year, HMRC says “the subscriptions to the second cash ISA are valid”.

innovate

jimjames wrote: »

Thanks for the info, very useful. That link also has another option that might be applicable

HMRC gives the example of Mrs Cooper, who put £3,000 into a cash ISA with her bank on 20 April 2008. She closed the account on 30 November 2008, before opening a second cash ISA with another bank on 3 December 2008.

Despite technically having opened two cash ISA within the same tax year, HMRC says “the subscriptions to the second cash ISA are valid”.

An ISA opened on 20 April 2008 is for the tax year 2008/2009. The cash ISA allowance for the tax year 2008/2009 was £3,600. If £3,000 were paid into an ISA which was then closed, there were still £600 of the allowance left. Of course those £600 could then have been paid into another ISA in the same tax year. But not a penny more than £600.

Colin297

psychic_teabag wrote: »

That's my understanding of the rules - if you transfer from cash ISA to S&S ISA, the money is treated as if it had always been S&S ISA money.

This isn't really transferring back from S&S to cash ISA, because you are consuming part of the allowance. It's just that you might not otherwise have used the S&S part of the allowance, so you might not mind.

Before transfer, 5680 of 11360 allowance used - all cash element used
After transfer, 5680 of 11360 allowance used, all as S&S money
After withdrawal as cash, you've still used 5680 of the (S&S) allowance.
After deposit into new cash ISA, all 11360 of allowance used.

http://en.wikipedia.org/wiki/Individual_Savings_Account#Transfer_rules
http://www.moneywise.co.uk/news/2009-09-25/could-you-cash-isa-loophole

But it's a bit of a low trick since you are causing the S&S provider to incur some costs setting up an ISA that you don't intend to use.

I'd love some clarification on this.

I think you are right for the most part but i don't think it free's up another Cash ISA allowance for me. In fact, surely it couldn't?