ISA Confusion

lisa701

I'm a Co-op customer and I've been looking at the Britannia Fixed Rate Cash ISA deal but I'm really confused by the terms and conditions for opening an account. Could someone here please explain it to me in simple terms?


The deal says "minimum opening balance for this account is £5760 if using 2013/2014 tax years allowance, or £1 if transferring previous years balances".


So does this mean if I want to open one now I will need to deposit a minimum of £5760 into it just to open the account?

I do have an ISA I opened last year with Nat West. Only has £10 in it so I'd be happy to transfer that balance into any new ISA I started this year. Does that mean I'd get away with the "£1 if transferring previous years balances"?

Thanks

MoneySaverLog

I suspect they will only allow one transaction in the current tax year, so if you paid into this you would not be able to pay in again this year to this isa. In order to pay in more you'd have to transfer out and then there will be penalties.

You can transfer in previous year ISAs without paying in anything this year. If you're going for this isa this year you'd best put the full amount in as they state.

AlwaysLearnin

From the "Rates & Restrictions" section:

"No further deposits are allowed into this account after the product has been withdrawn. A partial investment of a tax year’s allowance would prevent you from using the remainder of your cash ISA limit for that tax year, therefore if you wish to pay in for a tax year, you must use that tax year’s full allowance. This also means that subscriptions for future tax years cannot be made once the product has been withdrawn. "

So looks like you'd only have a certain window for deposits if you transfered.

The rates aren't great either - you can get better on some instant access ISAs:

https://forums.moneysavingexpert.com/discussion/401374

Meadows

Looks like you have to transfer in a past years Isa and open with £1 (new money) or open will this years full Isa amount.

The minimum opening balance for this account is £5,760 if using 2013/2014 tax year’s allowance, or £1 if transferring previous tax years’ balances. The interest rate is fixed until 06/04/2014.

2.35% for Co-op customers or 2.6% for current account customers or 1.8% new customers

pqrdef

When did they stop using the word "bond"? It did seem to communicate the idea of a thing where you put in what you're putting in and that's it.

lisa701

Thanks everyone.

I supposed I lived in hope that I might actually get something back on my small savings. Maybe a tin under the bed is a better option!

Seems my options are pretty limited - majority are looking for high savers, existing account holders or both. Of the one or two where that criteria doesnt stump me then they are with establishments that have no presence around here. Looks like I will be sticking with Nat West or that tin....

innovate

I don't think your conclusions are quite right. It seems you looked at a tiny selection of the cash ISA market, and limited yourself to it. Check out all available ISAs - post 1 of this this thread is a good start: http://www.moneysavingexpert.com/savings/ISA-guide-savings-without-tax

lisa701

thanks but i did look at that first. Three options - Nationwide who are my mortgage company so not sure if i want to save with them too. Cheshire request minimum of £1000 so only one open to me is NS&I but a friend had lots of issues with them so not sure they are a good choice.