Nationwide ISAs

Archi_Bald

Herbalus wrote: »

Yes it probably would. You could, however, move at least £15,000 out of the ISA and then put it all back in again when you start paying tax, assuming that your ISA rate is higher at this point than your post-tax savings rate. This is unlikely because TSB at 5% is still 4% after 20% tax and I don't think ISAs will be beating that in just a years time.

Assuming the interest wouldn't tip the OP into a taxable income situation, and as the OP has 3 years before they become taxable again, they might be able to take out double. Needs refining with dates to confirm it would work.

• year 1: take out £30,000
  .
• put 2 x £2K into TSB Plus, £2.5K into Nationwide, £5K into Club Lloyds, £18.5K into Santander 123. Cream off all the interest into the 123 account, and have R85s for all accounts
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• year 2: put the Nationwide £2.5K back into ISA when interest rate drops; put the remaining £12,500 back into ISA just before end of tax year. Close the Club Lloyds unless you can still deposit £1K a month, to avoid paying a fiver a month
  .
• year 3: put £15K back into the ISA

amibovvered

Wow - thanks for your suggestions!

Can't put £2.5 in Nationwide though because I already did that as soon as they introduced the rate and I believe you can only do it once (though I expect I've got that wrong too!)

Paying £1,000 into accounts is no bother, already shunt that between Nationwide, Halifax and RBS so what's a couple more!

I suppose it's true now that the allowance is increasing to £15,000 it's more feasible to remove funds then put them back in - how many people have a spare £15,000 every year anyway?

So you reckon I should be able to open accounts with Santander et al. by showing say £4,000 savings interest as income? I've opened dozens of accounts with no problem at all while I was earning, and got a cashback AA credit card after I finished work, though they did baulk at first at income of zero!

Great suggestions, keep 'em coming! :beer: