Cash ISA

spiidey

We've got £10k tucked away in an ISA with M&S (Advantage Cash ISA) which we opened on 10th July 2012. We've got another £5k in a web saveer account with first direct @ 1% but we have a fresh £5k ISA allowance this year.

Rate with M&S dropping to 1.30% on 10 May 2013.

We will need most, if not all, of the £10k at some point in late June. The remainder (£5k) we need in approx autumn.

If we move the money out of the M&S Advantage Cash ISA product, do we get penalised, or do we miss out on an annual bonus?

If the answer to the above is "no", what is our best option to go with for the £15k in a new account(s)?

david78

There shouldn't be any penalty for withdrawing from the M&S account as it sounds like you have a variable rate.

Why do you think you have £15k allowance to invest this year? (Are there three of you?). Its a bit confusing.

spiidey

david78 wrote: »

There shouldn't be any penalty for withdrawing from the M&S account as it sounds like you have a variable rate.

Why do you think you have £15k allowance to invest this year? (Are there three of you?). Its a bit confusing.

We've already got £10k invested plus a fresh £5k allowance this year.

david78

I thought you were going to withdraw the £10k in June since there is no penalty with M&S.

If there are two of you, you each have an allowance of £5760 this year (11,520 in total), which you could put into separate Cash ISAs.

spiidey

david78 wrote: »

I thought you were going to withdraw the £10k in June since there is no penalty with M&S.

If there are two of you, you each have an allowance of £5760 this year (11,520 in total), which you could put into separate Cash ISAs.

We've got £10k invested and another £5k that we will have to invest this year. We don't have another £5k on top of that (i.e. we can't take advantage of both of our allowances).

Is the santander 123 isa instant access, or is the cash locked in for 2 years?

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1237908323140&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_ViewSelector

spiidey

Could I split this year's ISA allowance of £5,760 between 2 instant access ISA's provided by different banks/institutions?

E.g. put £4,760 in a cash isa now, and then £1,000 in a different provider's cash isa in 2 months' time?

DragonQ

spiidey wrote: »

Could I split this year's ISA allowance of £5,760 between 2 instant access ISA's provided by different banks/institutions?

E.g. put £4,760 in a cash isa now, and then £1,000 in a different provider's cash isa in 2 months' time?

No. Seriously, does no-one read the ISA rules? All of your current year's subscriptions must be in one account, so you'd have to transfer the £4760 to the second provider before depositing new money into it.

saintalan

spiidey wrote: »

Could I split this year's ISA allowance of £5,760 between 2 instant access ISA's provided by different banks/institutions?

E.g. put £4,760 in a cash isa now, and then £1,000 in a different provider's cash isa in 2 months' time?

No you can only have one current years active ISA. You could put your £4760 in and when you decide where to put the other £1000 you could do it by transferring the first to the second providing it accepts transfers.

From your previous post 123 ISA is a 2 yr fix.

Alan

spiidey

saintalan wrote: »

No you can only have one current years active ISA. You could put your £4760 in and when you decide where to put the other £1000 you could do it by transferring the first to the second providing it accepts transfers.

From your previous post 123 ISA is a 2 yr fix.

Alan

Thanks for your reply, and to Dragon Q.

And in future I will read the ISA rules!