Tell us you cash ISA questions

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  • saintalansaintalan Forumite
    562 Posts
    julesemma wrote: »
    Thanks for that.
    Mums got £6000 in a basic savings account as well as the ISA money. She gets just a state pension of £68 a week. That's the only income she has. She doesn't like spending any money, that's why I say she will never spend the ISA money in her lifetime! Lol
    We would welcome any advice about which way to go ISA or savings?

    Hi again

    Well if the only income is the SP plus interest on the 2 accounts she wont have any tax to pay, so that makes the ISA unnecessary
    and as in general the rates are poor there seems no point.

    So you need to find the best home for the just under £20,000 savings. You need to decide if you need Instant Access or can fix it for a number of years and may not be able to access it.

    Your best bet is to look at the non ISA forum here.

    A lot will depend on how much effort you are prepared to do in order to get the best return by switching money around.

    Good luck and check out the other forum.

    Alan
  • Archi_BaldArchi_Bald Forumite
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    £6000 - - - that is 2 x £2,000 in TSB Classic Plus accounts, and another £2,000 for a year in a Nationwide FlexDirect. With R85s, it is 5% AER - £300 a year. Compared with probably £100 in an ISA.

    Only issue might be that mum might not want to open current accounts that require monthly shuffling of money but if so, she hopefully will accept help.
  • Thank-you very much hgt for replying to my earlier question. That has cleared it up for me.
  • Hi, hope I'm posting in an appropriate place. My cash ISA from last year is now showing interest in my ISA account. Can I leave the interest in the ISA account or do I have to take it out? If I leave it in the account, does that become part of the amount that I can put in this year? Thanks
  • ColdIronColdIron Forumite
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    You can leave it in there or take it out, up to you. Whatever you do has no affect on this (or any) tax year's allowance
  • JGalJGal Forumite
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    Part of the Furniture 100 Posts Combo Breaker
    I had £30k with a building society ISA up to the end of FY2013-14 and topped it up by £5,940 at the beginning of FY2014-15. To make use of the additional allowance of £9,060 after 1st July is it possible to do a part transfer out to a new ISA and then pay this additional allowance into the old ISA? i.e. old ISA remains open for the sole purpose of receiving this (there are reasons I prefer to do it this way).

    The reason I ask is that HMRC says "You can only put money into one cash ISA each tax year". There aren't any exclusions to this as far as I can see on HMRC's site, but I have read on a different thread someone saying if you transfer an ISA in its entirety you can contribute any unused ISA allowance to the new account.

    PS. I am fully aware of better rates available by opening multiple current accounts.
  • edited 21 June 2014 at 1:04PM
    innovateinnovate
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    edited 21 June 2014 at 1:04PM
    You cannot generally do what you are describing with cash ISAs. If you want to make any transfer, you must transfer all of your 2014-15 contributions, and you can only make further 2014-15 deposits into the ISA you transferred to.

    If you were to transfer your existing 2014-15 deposits to an S&S ISA, then yes, you would be able to make further contributions into your old cash ISA.

    There are also exceptions with some building societies, so if you can post more details about providers and ISA types, you can get a better answer.
  • JGalJGal Forumite
    132 Posts
    Part of the Furniture 100 Posts Combo Breaker
    innovate wrote: »
    You cannot generally do what you are describing with cash ISAs. If you want to make any transfer, you must transfer all of your 2014-15 contributions, and you can only make further 2014-15 deposits into the ISA you transferred to.

    If you were to transfer your existing 2014-15 deposits to an S&S ISA, then yes, you would be able to make further contributions into your old cash ISA.

    There are also exceptions with some building societies, so if you can post more details about providers and ISA types, you can get a better answer.

    Existing account : Cheshire Building Society ISA Saver Issue 1 @ 2.5% until 31 July 2014, then drops to 0.5%. Up to the end of FY2013-14 balance of £30k then topped up by £5,940 at the beginning of FY2014-15.

    Opened Santander 123 ISA fixed 2 year @ 2.3% at the beginning of June 2014 in branch with instructions to transfer £34,940 from Cheshire, leaving £1k in Cheshire such that £9,060 can be added to this after 1st July. The rationale being that HMRC say you can only pay into one cash ISA in any year and I'd already paid into the Cheshire in FY2014-15. If this is not correct I would appreciate a link to HMRC giving the exceptions to this. Also Santander say you can only make additional payments in within 14 days of opening which would have been before 1st July (But this seems contradictory).

    Since opening the Santander ISA I have had a correspondence from them saying they are unable to action the transfer from Cheshire due to insufficient funds. On speaking to Cheshire they say Santander's request was for £34,940 + all FY2014-15's ISA allowance. I instructed Santander to repeat the transfer for only £34,940 (which is what I originally asked for). Today I have received another letter from Santander again saying the transfer failed due to insufficient funds. I have not spoken to either Cheshire or Santander since.

    Today I have been reading about the DCU ISA and am considering aborting the Santander account and transferring to them instead.

    What ever happens I want to pay in the balance of this years allowance once 1st July passes. I am aware of the attractive current account rates but will not be using them in this instance.
  • innovateinnovate
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    Thanks for the additional detail. Not sure why you wanted to deposit your £9,060 into the Cheshire, as Santander will be opening their 2 year fixed ISA on July 1 for a month or two for further deposits but this might now be academic.

    Your transfer request seems to have fallen foul of the rule that if you want to transfer any current year deposits, you must transfer all of them. This is made clear on the Santander transfer form(*) and in the HMRC FAQ (and in countless posts on the MSE Forum). Santander would have tried to transfer £34,940 plus £5,940, which is obviously more than you have in your Cheshire ISA. That's why your transfer requests failed.

    All this might have been to your benefit as the DCU ISA should pay you more than the Santander one. The same rules will apply - if you want to transfer any of the 2014-15 deposits, you must transfer all of them. Like Santander, the DCU guys will let you deposit additional money after July 1 but you should clarify with the DCU guys that you can do exactly what you want to do. You haven't said when you intend to deposit the £9,060, and this may influence how much you should transfer.

    If you have the lot on July 1, and your transfer of the entire Cheshire ISA to DCU is complete by then, it can all be very simple - just deposit £9,060 into DCU and you are done (subject to them confirming you can deposit the additional money - - they have confirmed this for others).

    If there is a deadline for further deposits at DCU (like there is with Santander) and you cannot deposit your entire £9,060 with them by then, you should make sure that at least £5,940 is left in your Cheshire ISA. That way, you can get your remaining £9,060 into the ISA wrapper [at Cheshire] by April 5 2015, albeit at a terrible interest rate. Once you have deposited the total allowance into Cheshire, you might then be able to transfer the lot to somewhere else that pays better interest.

    DCU are very good in responding to emails quite quickly.

    Hope this makes sense to you. It's all very simple but you got to follow the rules.

    (*)For unfathomable reasons, the Santander ISA transfer form seems to only open in IE.
  • JGalJGal Forumite
    132 Posts
    Part of the Furniture 100 Posts Combo Breaker
    innovate wrote: »
    Not sure why you wanted to deposit your £9,060 into the Cheshire, as Santander will be opening their 2 year fixed ISA on July 1 for a month or two for further deposits but this might now be academic.
    I wasn't aware this could be done. I opened this in branch and the advisor didn't mention it. I specifically asked him about adding additional funds and he had to leave the room to ask or ring up someone and came back and said they could only be added within 14 days.
    innovate wrote: »
    Your transfer request seems to have fallen foul of the rule that if you want to transfer any current year deposits, you must transfer all of them. This is made clear on the Santander transfer form(*) and in the HMRC FAQ (and in countless posts on the MSE Forum). Santander would have tried to transfer £34,940 plus £5,940, which is obviously more than you have in your Cheshire ISA. That's why your transfer requests failed.
    I explained the situation fully on the telephone to an advisor and also to the in branch advisor when opening the account and neither mentioned this.
    innovate wrote: »
    All this might have been to your benefit as the DCU ISA should pay you more than the Santander one. The same rules will apply - if you want to transfer any of the 2014-15 deposits, you must transfer all of them. Like Santander, the DCU guys will let you deposit additional money after July 1 but you should clarify with the DCU guys that you can do exactly what you want to do. You haven't said when you intend to deposit the £9,060, and this may influence how much you should transfer.
    There's a cautious voice in my head telling me not to believe the DCU is without risk. I don't know why. I would deposit the additional money on 1st July.
    innovate wrote: »
    If you have the lot on July 1, and your transfer of the entire Cheshire ISA to DCU is complete by then, it can all be very simple - just deposit £9,060 into DCU and you are done (subject to them confirming you can deposit the additional money - - they have confirmed this for others).
    This sounds the easiest option...if I can rid my doubts about DCU.
    innovate wrote: »
    If there is a deadline for further deposits at DCU (like there is with Santander) and you cannot deposit your entire £9,060 with them by then, you should make sure that at least £5,940 is left in your Cheshire ISA. That way, you can get your remaining £9,060 into the ISA wrapper [at Cheshire] by April 5 2015, albeit at a terrible interest rate. Once you have deposited the total allowance into Cheshire, you might then be able to transfer the lot to somewhere else that pays better interest.
    It would be my luck that I switch horses and the DCU account expires prior to transferring.
    innovate wrote: »
    DCU are very good in responding to emails quite quickly.

    Hope this makes sense to you. It's all very simple but you got to follow the rules.

    (*)For unfathomable reasons, the Santander ISA transfer form seems to only open in IE.
    Yep thanks.
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