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

roryp15

So lets get this right.

You will have a cash NISA and S&S ISA?

The same just now like people have a cash isa and s&s isa?

The 2 diffrences you can deposit 15K per year. And trasnfers from s&s back to cash?

Or is it ONE account with both you cash and s&s are all done through?

Ed-1

roryp15 wrote: »

So lets get this right.

You will have a cash NISA and S&S ISA?

The same just now like people have a cash isa and s&s isa?

The 2 diffrences you can deposit 15K per year. And trasnfers from s&s back to cash?

Or is it ONE account with both you cash and s&s are all done through?

You can have 1 cash NISA and 1 S&S NISA, as now. The difference, as you say, is that you will be able to transfer the S&S NISA to a cash NISA, subject to the overall £15k limit.

bob_100

badger09 wrote: »

Sorry if I'm missing something, but why would you want to put money into an S&S ISA for 3 or 4 months What if the market drops 20% or so between now and July :eek:

Just keep your cash -if that's what you want to save in -in a current or savings account until July & pay into your cash ISA then.

I don't want to invest in the stock market put just to add to maximize this years allowance and put it in a S&S ISA. Basically doing this

"
Say you put as much as possible, £5,760, into a cash Isa. If you want to use the full £11,520 annual limit, the other £5,760 has to go into a stocks and shares Isa. But this description covers a multitude of options, some of which ensure that your money goes nowhere near the stock market.
You can even, paradoxically, hold money in your stocks and shares Isa in cash. If you take out an Isa via an "investment shop", you have a huge range of choice about where to put the money – one of which is a deposit account.
However, this is not a backdoor way of doubling the cash Isa limit because interest is normally negligible and is not tax-free anyway. But you could, in theory, hold the money there in the hope that the rules are relaxed in the future to allow it to be transferred to a proper cash Isa."

roryp15

Thanks for that ED-1? Just with what your saying Bob, how can you save in your s&s ISA as cash? So would this be likea cash isa within a s&s? Would you still gain intrest ?

bob_100

Archi_Bald wrote: »

Yes I think you are missing something.

If I understand correctly, these are hardened cash ISA only savers who have maxed their 2013-14 cash ISAs. They are now looking at getting their remaining 2013-14 allowance into a cash ISA, too.

The way to achieve this (may be) is to deposit the money into an S&S ISA, not invest it but keep it in cash, and come July transfer the lot out into a cash ISA. I am quite certain this would work but there could be significant charges since many of the providers charge for simply having an account.

Yes exactly my position. Is there any S&S ISA which has no fees/very low fees to do this?

Archi_Bald

badger09 wrote: »

Sorry if I'm missing something, but why would you want to put money into an S&S ISA for 3 or 4 months

Yes I think you are missing something.

If I understand correctly, these are hardened cash ISA only savers who have maxed their 2013-14 cash ISAs. They are now looking at getting their remaining 2013-14 allowance into a cash ISA, too.

The way to achieve this (may be) is to deposit the money into an S&S ISA, not invest it but keep it in cash, and come July transfer the lot out into a cash ISA. I am quite certain this would work but there could be significant charges since many of the providers charge for simply having an account.

In fact, none of the discount brokers seem to have a free S&S ISA now: http://monevator.com/compare-uk-cheapest-online-brokers/

You could also get hit by hefty exit charges.

bob_100

roryp15 wrote: »

Thanks for that ED-1? Just with what your saying Bob, how can you save in your s&s ISA as cash? So would this be likea cash isa within a s&s? Would you still gain intrest ?

You wouldn't gain interest but all i want to do is maximise this years allowance an then move in in July to a cash isa when the new NISA comes in.

roryp15

Ah i see, so ill just stick to cash and s&s isas then. Wont make to much of a diffrence for me apart from moving back from s&s to cash

bob_100

Do you recommend Cavendish? I'm new to this so have no experience in S&S ISA. I've clicked through the registration and can see that you can park your ISA Cash Park. Is there a time limit on how long i can do this? Also am i correct in thinking there will be no fees based on the below?


The Cavendish Online FundSupermarket will not levy any other charges. Customers will also benefit from:

• NO initial charges on all 2,000 funds
• NO annual fees
• NO exit fees
• NO switching fees
• NO Cavendish Online fee

I appreciate any help

Thanks

jimjames

bob_100 wrote: »

You wouldn't gain interest but all i want to do is maximise this years allowance an then move in in July to a cash isa when the new NISA comes in.

I'm really struggling to understand the point of this.

You put the money into a S&S ISA as cash where it will get 0% for 4 months. With the aim of then moving it to a cash ISA where it will get 1.5% or so, all to remain tax free.

Alternatively get 5% on it and pay some tax but still get a much higher rate.

It just seems to me that people are being blinded by it being tax free rather than maximising returns.