Which ISA ?

georgie_boy

Hi Guys,

I am now a disabled pensioner and my income is only benefits– so I don’t have a lot to play with.

I only started using an ISA about 3 years ago, when Lloyds/TSBtold me a downright lie about them (won’t bore you with the details here).

After several costly mistakes by L/TSB, I moved to Barclays about 18 months ago. I asked about ISA’s and they offered me a Loyalty Reward ISA – which I took up. I wasn’t told that there was a choice.

Although the idea is to leave the money in there, because of my circumstances, I need to know, that if I really have to, that I can access it.



1/ How does the Loyalty compare with Cash ISA’s ?

2/ I was told by both Lloyds/TSB & Barclays that we can only have ONE ISA. Or that if we had two, the total amount held couldn’t be over that years allowance (£5640).

A colleague has 3 full ISA’s (2 with same bank).

What are the rules about this ?

3/ I am considering moving my ISA funds to Santander 123. Is that wise ?



Any other advice would be appreciated.

Thanks for reading this.

opinions4u

Dreadful font.

I suggest you read this link as a starting point.

There are lies, damned lies and misunderstandings. Which are you a victim of here?

badger09

georgie boy


The link in opinions4u's post is a good place to start.

Are you currently a taxpayer, or likely to become one in the near future?

If you're not liable to pay tax, you could achieve a better result by having your savings in a non ISA account but receiving the interest gross.

xylophone

How does the Loyalty compare with Cash ISA’s ?

The Loyalty Reward ISA is a cash isa. http://www.barclays.co.uk/Savings/LoyaltyRewardISAInterestRates/P1242606179497

When did you open this ISA?

georgie_boy

Badger09: As in my OP, I am a disabled pensioner. My only income is DLA, Pension Credit & Severe disability payments.
This income is now taxable - but I don't get enough to pay or register for tax.

Xylophone: As in my OP, I opened my first ISA about 3 years ago with Lloyds/TSB. About 18 months ago, I ditched L/TSB for Barclays. I took the cash from L/TSB & started a new ISA with Barclays then.

Since starting this, I now see that no ISA is as good (interest wise) as Santander 123 account. Am still wondering.

thanks guys

PS: Link dosn't work for me.

badger09

georgie_boy wrote: »

Badger09: As in my OP, I am a disabled pensioner. My only income is DLA, Pension Credit & Severe disability payments.
This income is now taxable - but I don't get enough to pay or register for tax.

Xylophone: As in my OP, I opened my first ISA about 3 years ago with Lloyds/TSB. About 18 months ago, I ditched L/TSB for Barclays. I took the cash from L/TSB & started a new ISA with Barclays then.

Since starting this, I now see that no ISA is as good (interest wise) as Santander 123 account. Am still wondering.

thanks guys

PS: Link dosn't work for me.

If you are never likely to become a taxpayer, and don't want to tie up your ISA savings long term, then you will get more interest from a Santander 123 account, assuming you can meet the funding &DD requirements. If you can get cashback on those DDs, so much the better.

You might also take a look at the new Nationwide FlexDirect account which pays 5% interest for a year on a balance of £2500. Again there are some funding requirements.

You could also look at regular savers, but I don't want to overcomplicate this for you. (Hope that doesn't sound patronising:o)

You will need to register with your bank as a non taxpayer (form R85) to receive (non ISA) interest tax free.

Please think carefully before you withdraw all your ISA savings though. If there is any chance of you becoming liable to pay tax, you won't be able to put them all back into an ISA.

georgie_boy

Thanks again Badger.

I will be 65 in May. After working in the building & civil engineering trade all my life, my body now bu@@ered (mind following it rapidly !?).
I can't see me becoming a tax payer again.

I'll have a look at Nationwide. 5% looks pretty good.

How many ISA's can one person have ?
If more than one, would it be prudent to start another before or after April 2013 ?

regards

xylophone

http://www.moneysavingexpert.com/savings/best-cash-isa
Read above carefully.

Have you thought of transferring your Barclays ISA to get a better interest rate?

Remember that the new provider must organise the transfer.

innovate

xylophone wrote: »

http://www.moneysavingexpert.com/savings/best-cash-isa
Read above carefully.

Much more complete list of best cash ISAs is usually found in post 1 of this thread: https://forums.moneysavingexpert.com/discussion/401374

switch76

georgie_boy wrote: »

How many ISA's can one person have ?
If more than one, would it be prudent to start another before or after April 2013 ?

regards

You can only pay new money into one ISA account each tax year. (You can transfer money from previous years' ISAs into as many accounts as you want. Make sure you get the new bank to transfer the money, do not withdraw it yourself.) If you decide to use ISAs, it would be better to open one before the tax year finishes. You can put up to £5640 before April 5 and then £5760 from April 6 onwards.

The Santander 123 current account only gives you 3% interest only if you have between £3000 and £20,000. There is also a £24 annual fee.

The interest rates on the Nationwide account and most ISAs drop after 1 year so make sure you remember to change to a new account then.