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

Consumerist

buckster wrote: »

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?

If you can get a better rate before 1 July, why wait? Just go for a variable, rather than fix

ColdIron

buckster wrote: »

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

It's a tough call. If you opened the fix it's entirely possible that your pension provider simply won't allow additions

Some of them may create innovative new accounts that allow additional payments but with a fixed rate product that seems unlikely

Some pension managers may allow you to open a new additional ISA with them as I understand that is within the law, just uncommon

With only a couple of weeks to go I'd be inclined to hang fire and see what transpires. I wouldn't hold out much hope though as the banks have no appetite for savers money at reasonable rates and wouldn't relish an unplanned for tripling of inflows

This situation is without precedent so who knows what will happen

jimjames

buckster wrote: »

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?

If it is a transfer you'd need after July then I can't see any reason why you'd wait till July. All than happens in July is that the limit increases, it doesn't affect any cash ISAs you already have this year.

abarthman

jimjames wrote: »

I don't understand why you'd be prepared to take the very high risk that your money in a S&S ISA might have dropped in 3 months but not take the much lower risk that your money is there after 5 years or more.

Surely keeping it in a S&S ISA long term would make much more sense?

If the value has fallen significantly after 4 months, I'll leave it for as long as necessary. I don't forecast needing the cash any time soon.

If it has stayed the same or made a small gain after 4 months, I'll have an extra £5760+ in a tax free wrapper that I can put into a cash NISA.

If it has done really well, I might just leave it there.

Nourse79

Consumerist wrote: »

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.

from this website : http://www.isas.com/NISA.html
I understood transfer (even if it is with the same ISA provider) had to be done to differentiate between the old ISAS with lower limit and the new NISAs with higher limit :
The overall limit for NISAs for the 2014/2015 Tax Year will be £15,000. Money (restricted by the ISA Limits) saved in ISAs between 6 April 2014 to 30 June 2014 will have to be transferred from your ISA to a NISA before you start using the higher allowance. The higher allowance of £15,000 DOES NOT start until 1 July 2014.

Will probably get a bit clearer in a couple of months !

Archi_Bald

You do not have to request any transfer. Your existing ISAs will all automatically become subject to the new ISA rules from July 1 onwards.

The new limits are irrelevant for any pre 2014-15 ISA, just as new annual limits were always irrelevant for previous tax years.

miller

buckster wrote: »

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?

See my post 97

There was a similar sitation back in October '09 when the over 50's benefited from an increased allowance part way through the tax year.

Ultimately, it's up to the provider, so I'd ask them. Nationwide did allow it in the situation above for existing account holders back then and there were others, but it was not universal.

Archi_Bald

Skipton will allow additional deposits into Fixed Term ISAs in July

http://www.skipton.co.uk/savings_and_investments/isas/nisa/

I would think others will do the same but you need to confirm it individually. Santander, as of yesterday, were unable to make any statements on the matter.

Consumerist

This is all starting to look like [an] admin nightmare.

If you can open a cash NISA with one provider and an S&S NISA with another provider then neither provider will know when to pull up the drawbridge for deposits when you have reached the £15,00 overall limit on the two combined.

If you accidentally go over the combined limit, how will this be picked up [and by whom]?

DragonQ

It won't be a huge admin nightmare...who's even going to bother with ISAs in April?