ISA does the money have to be in all year?

pokerjk

I was a little confused the other night as Martin Lewis was saying get your money in an ISA quick before midnight.

But doesn't the money have to be in all year to get the interest?

Also Halifax have just made my ISA 0.25% for my saver online. So if anyone has any recommendations for the best rate for this type of account I will appreciate it. I think if I upgrade (its con banks do this) to the current Halifax ISA I will get 1.95%.

Cheers

McKneff

It was because of the tax year ending.

You get interest on your ISA as long as it is in there.

Speak to Halifax and they will transfer the funds for you.

YorkshireBoy

pokerjk wrote: »

But doesn't the money have to be in all year to get the interest?

No. Interest accrues daily.

Also Halifax have just made my ISA 0.25% for my saver online.

So they've done what they told you they'd do 12 or so months ago then?

So if anyone has any recommendations for the best rate for this type of account I will appreciate it.

I've just come to the end of my 3% rate, and am shifting mine to Santander for 2.5%.

I think if I upgrade (its con banks do this) to the current Halifax ISA I will get 1.95%.

Yes you will.

By the way, where's/what's the "con"?

YorkshireBoy

McKneff wrote: »

Speak to Halifax and they will transfer the funds for you.

No need to speak with them. Can be done by completing this form online...that's if the OP is happy with 1.95% AER?

pokerjk

Thanks both of you. Although you both gave conflicting answers on how the interest is paid. McKneff said as long as its in the account before the end of the tax year you get the interest but Yorkshire boy said its done daily?

Thanks for the recommendation on the Santander account think I will look into transferring to them.

I think its a bit of a con because some people won't remember to change/upgrading there ISA. Why make it so people have to upgrade? Why not just keep it at the rate they are offering?

pokerjk

Just saw Santander offer 3% to existing 123 account holders. Is there any issue with opening a 123 account now then opening 3% ISA with them tomorrow?

innovate

pokerjk wrote: »

Although you both gave conflicting answers on how the interest is paid. McKneff said as long as its in the account before the end of the tax year you get the interest but Yorkshire boy said its done daily?

They both essentially said the same. You will get the interest that is due to you for all the money you have in your ISA. The provider calculates it on a daily basis.

pokerjk wrote: »

I think its a bit of a con because some people won't remember to change/upgrading there ISA. Why make it so people have to upgrade? Why not just keep it at the rate they are offering?

You cannot /should not expect to get the same rate of interest forever. Thta's just not how the world works. Your money needs looking after, by yourself. There is no con involved - all providers tell you before you even apply what the terms and conditions are, what interest rate your ISA attracts for how long, and if there is a bonus involved.

innovate

pokerjk wrote: »

Just saw Santander offer 3% to existing 123 account holders. Is there any issue with opening a 123 account now then opening 3% ISA with them tomorrow?

Rumour is that the 3% ISA will still be offered after tomorrow. If you want to open both accounts quickly, you could try calling them (0800 068 6069) today, or popping into a Branch tomorrow.

YorkshireBoy

pokerjk wrote: »

Although you both gave conflicting answers on how the interest is paid. McKneff said as long as its in the account before the end of the tax year you get the interest but Yorkshire boy said its done daily?

You only earn interest on money that's in the account (many people don't grasp that fundamental aspect of saving, judging by the number of posts on here from people expecting a years interest if they paid in on the last day of the tax year!).

This interest is calculated daily on that day's closing balance.

Because it's not paid until later, it's said to 'accrue' (ie exist in the background) until it's paid.

Thanks for the recommendation on the Santander account think I will look into transferring to them.

It's not the best rate, but it suits my requirements (it may not suit yours).

I think its a bit of a con because some people won't remember to change/upgrading there ISA.

They knew when they opened the account that the bonus ran for 12 months.

Halifax then reminded them (by letter) 60 days before the end of bonus period that it was coming to an end on xx/xx/xx. The same letter gave them some options, even a weblink (the one I gave you above).

If these people then choose to do nothing about it they deserve all they get, namely 0.25%!

Most people have finished being spoon-fed by the time they're 2 years of age.

Why make it so people have to upgrade? Why not just keep it at the rate they are offering?

What rate? The new 1.95% rate? How are they supposed to know that's what you want to do with your money? The page I linked to earlier has 7 options (2 variable and 5 fixed). They're not mind-readers.

You haven't convinced me there's a con I'm afraid.

[Deleted User]

OP I understand!

You don't know what an ISA is.

So can someone explain (for me also) why you use an ISA and what the benfit is/was of getting the money into the account before midnight.

Clearly it's because you can save tax free. Is it that you can save the set amount and last years tax free this year and then all of the last + next years allowance next year. I.e. +1 year each year?

Lansdowne

assj wrote: »

OP I understand!

You don't know what an ISA is.

So can someone explain (for me also) why you use an ISA and what the benfit is/was of getting the money into the account before midnight.

Clearly it's because you can save tax free. Is it that you can save the set amount and last years tax free this year and then all of the last + next years allowance next year. I.e. +1 year each year?

Yes Assj, that is the answer to the original question.
The advice to make sure you get the money in "before it's too late" relates to the annual allowance of (last year) £5640. By using last year's allowance then this year's you can put £11400 away to make interest free of tax. If you missed out on the old year you could only put £5760 into the ISA and the rest would get taxed interest.

So the advice is really only significant to those with that sort of larger amount of money.