Tell us you cash ISA questions

isasmurf

atomicbomberman wrote: »

Thank you Masonic for your quick reply.

If my Tesco balance was £10,000 (ie using £5000 of the 18/19 tax year ISA allowance) and I transferred to Coventry, would Coventry allow me to place £15,000 into my ISA or would the rule of "not being able to subscribe into two Cash ISAs" apply and HMRC not be happy?

If you transfer out the Tesco Isa to Coventry in full resulting in its closure then HMRC will never know about the Tesco Isa as it won't be reported to them.

jrsga

Hi

How does one get round depositing more than the 85k FSCS which is currently in an ISA?

For example, £108k to invest - would I need to put 85k into the ISA with a provider and then the remainder with another provider also in ISA? So in effect two ISA's? Is that allowable?

eskbanker

jrsga wrote: »

How does one get round depositing more than the 85k FSCS which is currently in an ISA?

For example, £108k to invest - would I need to put 85k into the ISA with a provider and then the remainder with another provider also in ISA? So in effect two ISA's? Is that allowable?

You can have as many ISAs as you like - the rule is simply that you can only pay into one of each type in any given tax year. The extension to this is that contributions made in previous tax years can be transferred around (via receiving institution's ISA transfer process) and split up as much as you like, whereas all contributions in the current tax year must be in the same place (within each type).

jrsga

eskbanker wrote: »

You can have as many ISAs as you like - the rule is simply that you can only pay into one of each type in any given tax year. The extension to this is that contributions made in previous tax years can be transferred around (via receiving institution's ISA transfer process) and split up as much as you like, whereas all contributions in the current tax year must be in the same place (within each type).

When you say each type in any given tax year what do you mean flexible and non flexible?

eskbanker

jrsga wrote: »

When you say each type in any given tax year what do you mean flexible and non flexible?

No, I'm referring to the types defined by HMRC at https://www.gov.uk/individual-savings-accounts:

There are 4 types of ISA:

• cash ISAs
• stocks and shares ISAs
• innovative finance ISAs
• Lifetime ISAs

You can put money into one of each kind of ISA each tax year.

AbbieCadabra

I haven't looked at ISA's for a number of years, so some very basic questions please -

i'm a basic rate tax payer, other savings interest already takes me near the £1k allowance per year.
i'll have £20k to invest this tax year & again for the new tax year.
I have an old KRBS cash isa with less than £1k in it that hasn't been added to for at least 2 years after funds were withdrawn for a large purchase, would prefer to transfer this in to any new isa.
Require low risk so have only looked at cash isa's, not s&s as have no knowledge of these, but happy to tie money up with limited/no access for up to 5 years.
Must be FSCS protected.
Prefer for savings to be all together but realise to get better interest it will probably be a new isa each year.

I was looking at Coventry BS fixed until 30.11.23 at 2.3% but hadn't realised this was no further deposits after initial amount & transfer in, I presume all fixed rates over longer periods operate this way?
Alternatively, Shawbrook 2 year fixed at 1.91%, transfer in & further deposits allowed, might be a better option & see what's on offer after this fixed term.

Feel like a complete newbie again on savings, especially isa's as seem to have been quite a few changes within last 3 years. Any guidance greatly received

masonic

AbbieCadabra wrote: »

I was looking at Coventry BS fixed until 30.11.23 at 2.3% but hadn't realised this was no further deposits after initial amount & transfer in, I presume all fixed rates over longer periods operate this way?
Alternatively, Shawbrook 2 year fixed at 1.91%, transfer in & further deposits allowed, might be a better option & see what's on offer after this fixed term.

The problem with fixed rate cash ISAs is that if you want to save over the course of a tax year, you are not free to open multiple cash ISAs unless you use a very limited number of split-ISA providers, and even then you are tied to a particular provider for contributions made during the same tax year.

The best non-ISA 5 year fix pays 2.75%, which is 2.2% after basic rate tax - or for a shorter term fix, 2.45% fixed for 2 years which is 1.96% after basic rate tax. Neither allow additional deposits, but you can open another account when you have more to save. You can open a ladder of such accounts so that your money is gradually returned to you on a monthly basis if you wish.

Dazed_and_confused

i'm a basic rate tax payer, other savings interest already takes me near the £1k allowance per year.

What about the savings starter rate of tax some basic rate payers can benefit from (before the savings nil rate, aka PSA, even comes available).

If your wages, pension, business profits, rental income etc is less than £17,500 (in 2019:20 tax year) this could be of use to you.

karenccs67

AbbieCadabra wrote: »

I haven't looked at ISA's for a number of years, so some very basic questions please -

i'm a basic rate tax payer, other savings interest already takes me near the £1k allowance per year.
i'll have £20k to invest this tax year & again for the new tax year.
I have an old KRBS cash isa with less than £1k in it that hasn't been added to for at least 2 years after funds were withdrawn for a large purchase, would prefer to transfer this in to any new isa.
Require low risk so have only looked at cash isa's, not s&s as have no knowledge of these, but happy to tie money up with limited/no access for up to 5 years.
Must be FSCS protected.
Prefer for savings to be all together but realise to get better interest it will probably be a new isa each year.

I was looking at Coventry BS fixed until 30.11.23 at 2.3% but hadn't realised this was no further deposits after initial amount & transfer in, I presume all fixed rates over longer periods operate this way?
Alternatively, Shawbrook 2 year fixed at 1.91%, transfer in & further deposits allowed, might be a better option & see what's on offer after this fixed term.

Feel like a complete newbie again on savings, especially isa's as seem to have been quite a few changes within last 3 years. Any guidance greatly received

I was looking at this Coventry BS fixed rate ISA too, not sure what do do, I have £20,000 to invest.

colsten

karenccs67 wrote: »

I was looking at this Coventry BS fixed rate ISA too, not sure what do do, I have £20,000 to invest.

Coventry ISA is a cash ISA, i.e. just a savings account, not an S&S ISA, which would be an investment one.