ISA confusion

MrMrMr

I have an ISA in Halifax, maxed it out in 1st year about 3 years ago. Tbh I don't know much about it. Recently checked it and the interest rate now is a rubbish 0.5%.

I now have another lump sum (max allowed in a year) to put in an ISA but I'm confused on the rules tbh, how many, when I can add, add to my existing one as its a different tax year etc.

So do I leave my Halifax one alone and get the 0.5%?

Do I take the money out of Halifax, move it to a new one for this tax year, then my other lump sum get another one (same bank/building society allowed) for the 2013-2014 tax year?

Cheers

jimjames

You still have the 2012/13 tax year to use up if you haven't opened an ISA this year so between now and 6th April you could get over £10k into cash ISAs and the same into S&S ISAs.

MrMrMr

I'm only talking cash ISA here not stock one. I haven't opened one this year so what should I do? What about the Halifax one though?

innovate

Do not take your money out of your Halifax ISA - it will lose its tax-free status if you do.

You can ask a new provider to transfer your existing ISA. Best start by reading the MSE ISA transfer guide http://www.moneysavingexpert.com/savings/cash-isa-transfers

And the ISA guide whilst you are at it.

Mickygg

Transfer your old one to a better rate, pay in this tax year the full amount you have into a new isa. Some ISAs allow you to transfer old ISAs and also pay in new money.
Check out kazzas thread at the top for all rates.

badger09

andyloc wrote: »

I have an ISA in Halifax, maxed it out in 1st year about 3 years ago. Tbh I don't know much about it. Recently checked it and the interest rate now is a rubbish 0.5%.

I now have another lump sum (max allowed in a year) to put in an ISA but I'm confused on the rules tbh, how many, when I can add, add to my existing one as its a different tax year etc.

So do I leave my Halifax one alone and get the 0.5%?

Do I take the money out of Halifax, move it to a new one for this tax year, then my other lump sum get another one (same bank/building society allowed) for the 2013-2014 tax year?

Cheers

As innovate says do not take your money out of your Halifax ISA

I would go even further - if you have £5640 to pay in now, then pay it in now

There's a bank holiday coming up and if you don't get £5640 paid in before 5th April, you will have lost this year's ISA allowance :eek:

You might get a transfer of your existing Halifax ISA sorted out in time to pay in this year's allowance before 5th April, but I wouldn't count on it

Once you've paid in, start the transfer - by using your new provider's transfer process. You can then decide what to do about 2013/14 any time from 6th April

MrMrMr

Ok still need a little help. Yesterday I transfered the max allowed for the year £5640 into my Halifax one so now have over 10K in it to get this years benefit. Now this Halifax one is only 0.5%.

So there are better ones about so do I open a new one now or wait until new tax year? Can I then transfer all the 10K into the new one and then add another £5640 in the new tax year?

Cheers

xylophone

You might consider a transfer to the Cheshire? http://www.thecheshire.co.uk/ISAs/ISA-Saver/

The cash isa allowance for the new tax year (6 April 2013- 5 April 2014) is £5760.

The Cheshire is instant access - whether this account will be available in the new tax year is unknown.

MrMrMr

xylophone wrote: »

You might consider a transfer to the Cheshire? http://www.thecheshire.co.uk/ISAs/ISA-Saver/

The cash isa allowance for the new tax year (6 April 2013- 5 April 2014) is £5760.

The Cheshire is instant access - whether this account will be available in the new tax year is unknown.

Ok so I should get the new ISA now not wait till the new tax year, get the 10K transfered in, then on new tax year put another £5760 in?

Thanks for your help. Ideally I'd want a Internet one for access in case. I notice Halifax do one at 1.95%. I'd imagine this would be the easiest to do, as I'd just open the new ISA and do the transfer between them? Over the year (for convenience) is 2.3% over 1.95% that much for the £15K that will be in?

Although just seen an Internet one from Santander that allows transfers in at 2.5%. Any good?

Also what's the next best place to put some savings after an ISA? I was using ING (now Barclays), but again the rates gave plummeted.

Cheers

phona

I would go for the one from Santander. It's easy access and you can operate it online. You could be right that using your current bank is easier but it's definitely worth going for the higher rate.
The Santander Direct ISA Saver (that I assume you were referring to) takes five minutes to apply for. You get an email with a form attached to transfer your existing ISA, which you just have to complete, print, sign and return to Santander at the address they give. Easy peasy!

A note from personal experience: I applied on Thursday evening and got my sort code & account number on Friday. On Friday I posted the transfer form. Today (Tuesday) the balance left my previous ISA. I don't yet have access to Santander's online banking so my money seems to have gone into the Banking Void for a while! :eek: But all smooth running so far (touch wood)

MrMrMr

Opened a Satander one, 2.5%. Transfer going through. Hope all goes ok, I'll then transfer the new allowance on Mon for the 13/14 tax year and monitor incase the % rate drops.