Total ISA Novice - please help

movinghelp

iThanks Vortigen. So this is the account: http://www.coventrybuildingsociety.c...prodCode=60NI2

If I deposit now and withdraw it all in April 2014 will I have got all the same benefits as leaving till April 2015?

bugbyte_2

If you take the money out in Apr you will have earned 3 moths interest, which is fine. Please note with ISA's that if you are taking the money out to put in another ISA you need to transfer it -i.e. get the bank to do it for you. For example:

Put £5060 in ISA now. See a better rate in Apr, BANKS transfer whole lot to new ISA. It keeps its tax free status, and you still have next years ISA allocation to put money into.

OR

Put £5060 in ISA now. See better rate in Apr. Take money out of ISA (it looses its Tax free status at this point) and put it in new ISA. New years ISA allocation used up with your £5060, so you can't save any more money in an ISA that year.

Clear as mud? hopefully someone else can explain better.....

t0rt0ise

You'll need to look before April 2015 to check that you're still getting a good rate and if not move your money to another account. When you want to move the money you do so by opening another ISA wherever you like and then completing the form with that account asking them to collect your money from the old account. Not all ISAs will take transfers in so you would need to choose one that does. Trick is to watch your accounts regularly to see that they are still the best option.

Vortigern

movinghelp wrote: »

So this is the account:
<link to Coventry 60-day notice ISA>

If I deposit now and withdraw it all in April 2014 will I have got all the same benefits as leaving till April 2015?

Yes, you'll get the same interest. Don't forget the need for 60 days notice, or you'll lose 60 days interest.

Don't withdraw the money until you need to buy your house.
If you find a better ISA deal before your house purchase you should do an ISA transfer.

movinghelp

Great thanks everyone, any reason for this though: Tax status: Non tax payer?

Vortigern

movinghelp wrote: »

Great thanks everyone, any reason for this though: Tax status: Non tax payer?

Nobody pays any tax on a cash ISA, so it doesn't matter.