Tell us you cash ISA questions

woodend686

I've just opened a new fixed-rate ISA in this tax-year 20-21 by transfer-only of all funds from a previous year's ISA.                    But I've realised that this new fixed-rate ISA does not allow further cash contributions.
Does that mean that I've lost this new-year's ISA allowance for 20-21, or could I still open another cash ISA  with a cash deposit of up to £20000?
Thanks

eskbanker

woodend686 said:

I've just opened a new fixed-rate ISA in this tax-year 20-21 by transfer-only of all funds from a previous year's ISA.                    But I've realised that this new fixed-rate ISA does not allow further cash contributions.
Does that mean that I've lost this new-year's ISA allowance for 20-21, or could I still open another cash ISA  with a cash deposit of up to £20000?

The latter - provided you haven't paid any new money into the new fixed rate account then you still have your full 2020/21 allowance available and no restriction on where to use it.

colsten

Provided you have not deposited any new money into your old ISA in the current tax year, you can open a further cash ISA for your 2020-21 subscription (deposit of new money). In fact, you could also open other types of ISA - S&S, IFISA, and LISA if you are eligible for LISA. Your total subscriptions (new deposits) across the new ISAs for the year must not exceed £20k.

Most fixed rate ISAs have a short deposit window (typically a couple of weeks), during which you can make multiple deposits and transfers-in.

Clarke25954

Just been informed my so called garanteed cash isa has been reduced from 1.4 to 0.25 %..
Any idea where l can invest at a better return.

eskbanker

Clarke25954 said:

Just been informed my so called garanteed cash isa has been reduced from 1.4 to 0.25 %..
Any idea where l can invest at a better return.

What exactly do you mean by "so called garanteed", what form did the guarantee take?

Anyway, if you want to stick to cash ISAs, read up on options at https://www.moneysavingexpert.com/savings/best-cash-isa/, and choose a fixed rate product if you're prepared to commit to a fixed term in exchange for a guaranteed rate.

Alternatively, https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

newbiemoniesaver

Hello. I am looking for some advice if I can. Bit lost with what to do for the best. Details...
I think I am a lower rate tax payer. I have £20K in a 1.4% Virgin cash ISA from 2018/2019 and just over £30k in the Marcus 1.32%. Am I better off moving the money from the Marcus account to a new cash ISA? If so can I move to the Virgin cash ISA account I currently have or does it need to be a new account? I've been asked to sign a renewal with Virgin that I think reads like this will be my only cash ISA for the current tax year. Gah, help please! Thanks very much.

masonic

If you don't pay any new money into the Virgin cash ISA, then it won't be your only cash ISA for the current tax year. If you do pay new money in, it must be your only cash ISA for the current tax year.

Will Virgin continue paying 1.4% on your cash ISA and allow you to add more money?

newbiemoniesaver

masonic said:

If you don't pay any new money into the Virgin cash ISA, then it won't be your only cash ISA for the current tax year. If you do pay new money in, it must be your only cash ISA for the current tax year.

Will Virgin continue paying 1.4% on your cash ISA and allow you to add more money?

I think so yes. The 1.4% is preserved. If that's confirmed am I better off moving money from the Marcus account over to the ISA? The interest is being paid monthly by the Marcus account, I am thinking that I might need to withdraw the money from the ISA before the year is out and I'd qualify for the interest, in which case might be better to move the money from the ISA over to the Marcus account and get all of the monthly interest that I can. Thoughts? Thanks for your help!

masonic

newbiemoniesaver said:

masonic said:

If you don't pay any new money into the Virgin cash ISA, then it won't be your only cash ISA for the current tax year. If you do pay new money in, it must be your only cash ISA for the current tax year.

Will Virgin continue paying 1.4% on your cash ISA and allow you to add more money?

I think so yes. The 1.4% is preserved. If that's confirmed am I better off moving money from the Marcus account over to the ISA? The interest is being paid monthly by the Marcus account, I am thinking that I might need to withdraw the money from the ISA before the year is out and I'd qualify for the interest, in which case might be better to move the money from the ISA over to the Marcus account and get all of the monthly interest that I can. Thoughts? Thanks for your help!

As the interest rate is higher, then yes it would make sense to move as much money there as you can. Interest is calculated and accrued daily, so when it is paid is of little consequence. If there is a withdrawal penalty for the Virgin cash ISA that could change things though.

badger09

newbiemoniesaver said:

masonic said:

If you don't pay any new money into the Virgin cash ISA, then it won't be your only cash ISA for the current tax year. If you do pay new money in, it must be your only cash ISA for the current tax year.

Will Virgin continue paying 1.4% on your cash ISA and allow you to add more money?

I think so yes. The 1.4% is preserved. If that's confirmed am I better off moving money from the Marcus account over to the ISA? The interest is being paid monthly by the Marcus account, I am thinking that I might need to withdraw the money from the ISA before the year is out and I'd qualify for the interest, in which case might be better to move the money from the ISA over to the Marcus account and get all of the monthly interest that I can. Thoughts? Thanks for your help!

Please let us know the precise name of your Virgin ISA. You mention 2018/19. When did you open it?
I ask because it is very unlikely that an instant access Virgin ISA opened in 2018/19 would still be paying 1.4%, and any fixed rate ISA is unlikely to allow further subscriptions now.