Monthly vs. annually paying ISA (Virgin Money)

mania112

Anddos wrote: »

could i open 2 isa's at the same time, i have a saving of 8'500, how much interest per month am i looking at?

the plan would be this

isa 1 = 5,500
isa 2 = 3000

can i make 2 isa's at the same time?

Total ISA limit is £11,280 for Stocks and Shares - Half of which is the limit for Cash ISA - £5,640.

If you have a Cash ISA (of any amount) the limit for S&S ISA is reduced to £5,640.

You CAN split the companies for which you invest if you want half Cash and half S&S.

But you CANNOT split Cash or S&S themselves - and you can't have 2 Cash ISA anyway because you'll breach the limit, in your example.

EDIT: I'm not sure i've explained this very well!

Shazminda

Received a letter stating they are reducing the rate from 3% to 2.75% very disappointed as took this ISA as believed the rate would not decrease especially in the first year. Will be looking to transfer to another provider in the new financial year.

psychic_teabag

mania112 wrote: »

But you CANNOT split Cash or S&S themselves

I think the rule is actually that you can't subscribe to cash ISAs from more than one provider in a year. Most providers implement this such that you can only subscribe to one cash ISA per year, but there are some - e.g. Nationwide I think - which will allow you to subscribe to multiple cash ISAs with them. e.g. you might split your allowance between an instant-access ISA and a fixed-term ISA. (But if you were to do this, you presuamably wouldn't be able to transfer the instant-access one during that financial year, since the subscriptions would have to stay together.)

But as mania112 says, you can't do this to increase the subscription limit - that would still apply across all ISAs.

(Oh, and to be pedantic, you can "split" old cash ISAs from previous years. You can't split the subscriptions (new money) to an ISA within a year.)

You can open as many ISAs as you want, whereever you want, in a year, for transfers for example. The rules apply only to subscriptions (new money) within one financial year.

Anddos

is this right
How much would you like to open your Cash ISA with?
so if i put in 5,640, i will make 160 pounds interest per month , surely that can't be right?

Estimated interest £160.74 AER1 / Tax-free3 P.A. Estimated total amount £5,800.74 AER1 / Tax-free3 P.A.

psychic_teabag

£5640 at 2.85% AER would make £160 per year, not per month. You'd get 1/12 of it per month.

Anddos

but i did select the monthly option so why did it output as yearly?

Stompa

Anddos wrote: »

but i did select the monthly option so why did it output as yearly?

It displays the annual interest in both cases, that's why it says 'P.A.' at the end.....