Savings kerfuffle with Fixed ISA - what shall I do with my savings now?

nicedream_2

Hello

I'm new to the saving process and I think I've got myself in a bit of a mess.

I opened a Santander 4% fixed rate ISA in August of this year and made transfers from August to October. It then wouldn't allow me to make any further transfers, so I phoned Santander and they explained I wasn't allowed to make any further transfers until 2014. I mistakenly thought I could make transfers until the close of the account and didn't realise it was such a short period!

I have a balance of £2,640 in my ISA and was planning to reach the maximum in April 2013 of £5,640 but now obviously can't do this.

Any advice on what to do next? My aim is to save £600 a month.

I have this month opened a Halifax current account and hold a Santander join current account.

Do I open another ISA or do I go down the regular savings route? I thought I was doing so well with the savings!

Any help appreciated.

Thank you,

nicedream_2

I should add that I listed my current accounts as I know a popular option is the FD 8% regular saver. Can I get away with three current accounts or would this affect my credit rating/be frowned upon?

Can I also up a new ISA for the rest of the year or have I used up my amount by opening the Santander account?

opinions4u

You cannot fund another cash ISA in this tax year.

nicedream_2

Thank you, opinions4u. Does this mean I can't open one next year as well, as it expires in 2014? I'm sorry for my ignorance.

So if regular saver is my only plan, is it worth applying for a FD account, or will the computer say no, as I've opened a current account recently?

evenasus

You can only contribute to one ISA per year.

The 2012-2013 allowance was £5640.00

After the 6th April 2013 you will be able to contribute up to £5760 to a new ISA for the 2013-2014 tax year.

evenasus

I can't help re the credit rating, as I've never wanted/needed credit, so it doesn't bother me.

I have numerous savings accounts and three current accounts all with different banks/building societies.

nicedream_2

Thanks evenasus

So my plan...

To open up one in April 2013 for that year and try again with the ISA thing (!)

Open a regular saver with First Direct for the 8% for a year and another savings account for any left overs.

I'm only concerned about my credit rating because of I one day plan to apply for a mortgage (hence the saving!), but that's a couple of years off yet.

I'm more confused than when I was in debt! :eek:

Any

evenasus wrote: »

I can't help re the credit rating, as I've never wanted/needed credit, so it doesn't bother me.

I have numerous savings accounts and three current accounts all with different banks/building societies.

Me too. I also have 3 current accounts and I have never yet been turned down for credit..
It's more about many 'credit' applications in short amount of time. And how you manage these accounts (ie regularly in overdraft etc)

evenasus

nicedream wrote: »

To open up one in April 2013 for that year and try again with the ISA thing (!)

Make sure you only open a fixed rate/term ISA, if you intend to put the full allowance - or as much as you will be able to afford for the financial year.

Otherwise, you need to open an easy access ISA.

I opened the Santander 4% fixed rate ISA last April but I did know that I only had a certain amount of time to contribute funds to it.

Actually - it's now a 4.10% as they said they would pay .10% if Rory Mcllroy won certain golf games.

nicedream_2

Ah - 'easy access' that's clearly what I want. I thought fixed rate meant the interest rate was the same for the two years... learning slowly!

That's the current account I had this year as well. I don't think i've known any other golf result than that one. Glad it's not just me getting confused about these things

Robin_TBW

With a fixed-rate product it's generally the case that there is a certain period for you to put the money you want into the account and then that stays in there for the fixed period and that's why the interest rate is higher. They know what they'll be paying you throughout the course of the accounts life.

A common mistake with ISAs though is that you can only HAVE one ISA per tax year when in fact the rule is you can only PAY IN TO one ISA per tax year.

So, come April 6th - open a new ISA but make sure it's open to regular payments unless you have the full allowance to put into it in one lump sum.