Budget: £15000 ISA Limit from 01/07 for Cash OR S&S

Archi_Bald

buckster wrote: »

Are you able to move your old cash isa money to say santander 123 and open one with Halifax and only fund that one after 6th April. I'm not sure of what the rules are.

The rules are that you are allowed ISA transfers which do not count towards your annual ISA allowances. An ISA transfer is when you ask your new provider to transfer your old ISA to a new ISA with them.

The general recommendation is to use ISA transfers. If you transfer yourself, your old ISA loses its tax-free status, and any deposits into your new ISA will count towards your annual ISA allowance. This may or may not matter to you, depending on the sums involved.

scubascuba3

Archi_Bald wrote: »

Banks aren't dependent on savers' deposits. They still can get significantly cheaper money from the Funding For Lending scheme.

So you think they don't need ISA deposits? Maybe not saving deposits also then? I think you are wrong.

Archi_Bald

You are entitled to your opinion.

Herbalus

scubascuba3 wrote: »

So you think they don't need ISA deposits? Maybe not saving deposits also then? I think you are wrong.

I think a key phrase here would be as much. Since funding for lending banks have been able to access cheap money which is a contributing factor to the low interest rates - the banks don't need to attract us as much with high rates, because they can get other money more cheaply.

This is also why many attractive providers don't allow transfers in - they don't want to pay relatively high amounts on large sums.

The impact on funding for lending on interest rates is well documented, I think.

Porcupine

Spotted something interesting in the HMRC document:

How long will the transfer take?

If you transfer savings from a Cash NISA to another Cash NISA your transfer must usually
be completed within 15 business days of you requesting it. Any other type of account
transfer must usually be completed within 30 days of you requesting it.

I wonder if this will have teeth? Because 30 days (30 business days or calendar days, it's unclear) is a lot shorter than many S&S ISA transfers have taken in the past...

Nourse79

Still a bit confused. Can anyone please correct me if I'm wrong :
from 06.04.14 I can add £5940 to my existing cash ISA then on 01.07.14 open and transfer it to a new ISA/NISA and add a further £9060, making a total ISA allowance of £15k for the tax year 2014/15.(assuming the interest rate of the NISA is worth making the transfer....).

kidmugsy

Archi_Bald wrote: »

You are entitled to your opinion.

Harsh, brother, harsh.

ColdIron

Nourse79 wrote: »

Still a bit confused. Can anyone please correct me if I'm wrong :
from 06.04.14 I can add £5940 to my existing cash ISA then on 01.07.14 open and transfer it to a new ISA/NISA and add a further £9060, making a total ISA allowance of £15k for the tax year 2014/15.(assuming the interest rate of the NISA is worth making the transfer....).

If you have an easy access, variable rate ISA there's no need to open and transfer anything, just top up the existing one. If you opened a fixed term ISA then you have problems as you probably can't add to it

Consumerist

Nourse79 wrote: »

Still a bit confused. Can anyone please correct me if I'm wrong :
from 06.04.14 I can add £5940 to my existing cash ISA then on 01.07.14 open and transfer it to a new ISA/NISA and add a further £9060, making a total ISA allowance of £15k for the tax year 2014/15.(assuming the interest rate of the NISA is worth making the transfer....).

That's the way I understand it. But you don't have to transfer it, you just get an increased allowance from 1 July so you can add to it if you want to.

buckster

ColdIron wrote: »

If you have an easy access, variable rate ISA there's no need to open and transfer anything, just top up the existing one. If you opened a fixed term ISA then you have problems as you probably can't add to it

My 2.5% rate with santander ends tomorrow, should I stay at 0.5% until we know more or go for the fix and hope they will let u transfer in on 1st July. What's everyone else doing?