If I have the £5.7k to max an ISA..

dannylfc_1

Then I may as well wait till March? Just before the end of the tax year (rates are supposed to jump a bit too) - and you get all the benefits as you would if I had done it 10 months earlier?

Thanks moneysavers!

Lokolo_2

dannylfc_1 wrote: »

Then I may as well wait till March? Just before the end of the tax year (rates are supposed to jump a bit too) - and you get all the benefits as you would if I had done it 10 months earlier?

Thanks moneysavers!

Well not really, you miss out on the interest that you could have accrued by opening an ISA earlier, you only get paid interest for the period which the money is in the ISA!

Onemeg

agree with lokolo.

Also, if rates do go up, you could always withdraw your 2012 ISA and reinvest using 2013 allowance (though you'd need to be mindful of any penalties / restrictions).

In the big scheme of things, will a few fractions of a % make a big difference given the loss of interest in the meantime.

dannylfc_1

Onemeg wrote: »

agree with lokolo.

Also, if rates do go up, you could always withdraw your 2012 ISA and reinvest using 2013 allowance (though you'd need to be mindful of any penalties / restrictions).

In the big scheme of things, will a few fractions of a % make a big difference given the loss of interest in the meantime.

Good point. I think I will go ahead with one now, thanks.

innovate

to keep your options open, go for an instant access one, or one which you can transfer/close at short notice. That way you can jump onto a better one come April. It's a bit of a gamble whether we'll see the 'traditional' ISA rate mania next year, but if we don't, at least your money has been earning tax-free interest from December 2012.

bigfreddiel

dannylfc_1 wrote: »

Good point. I think I will go ahead with one now, thanks.

unbeliveable innit!

droopsnoot

Onemeg wrote: »

Also, if rates do go up, you could always withdraw your 2012 ISA and reinvest using 2013 allowance (though you'd need to be mindful of any penalties / restrictions).

Remember if you withdraw the 2012 money and reinvest it, that will count as part of your 2013 allowance. Depending on rates availabe at the time it may be better to find a 2013 ISA that will accept transfers in, if you are (or may be) in a position to use up your 2013 allowance as well. In fact you should always look around for better rates for ISAs once they've got past the initial headline interest rates.