Old ISA Matured

evenasus

kidmugsy wrote: »

(1) But young Mr Osborne will let you bung £15k back in whenever you want.

If someone has £15K in an ISA and withdraws £10K, they could not just bung that back in, not in the same financial year.

Vortigern

evenasus wrote: »

If someone has £15K in an ISA and withdraws £10K, they could not just bung that back in, not in the same financial year.

But they can if the 15K is all from previous tax years, as is the case for the OP.

Vortigern

trenchwars wrote: »

Thanks, but its not a good option for me as I am a higher rate taxpayer.
I think I am going to go with the Santander 2 year fix at 2.3%. If rates go up in a year and I transfer out then even with the interest rate penalty it is not a bad rate for the market.

butterflymum wrote: »

If you do decide on this, best consider making a move quickly. A number of recent threads have suggested the 123 Fixed Rate ISA @2.3% is due to change on Monday to a new issue at 2% or 2.1% (nb this is not yet confirmed).

If going this way, do it online and do it today.

innovate

Vortigern wrote: »

But they can if the 15K is all from previous tax years, as is the case for the OP.

This is misleading. What you are referring to is a transfer, it is not binging it back in, it's never taking it out in the first instance.

Although the OP didn't say, I am assuming that they, not least because they are a higher rate tax payer, probably would want to use new money for some or all of their 2014-15 allowance, and continue to build their tax free nest egg. Just alone for that reason it would not make sense to take the money out of the ISA wrapper.

But more importantly, it would be lunacy to put the money into 3% or less (net) non-ISA accounts if a 3% or better ISA can be had.

Vortigern

innovate wrote: »

This is misleading. What you are referring to is a transfer, it is not binging it back in, it's never taking it out in the first instance.

Although the OP didn't say, I am assuming that they, not least because they are a higher rate tax payer, probably would want to use new money for some or all of their 2014-15 allowance, and continue to build their tax free nest egg. Just alone for that reason it would not make sense to take the money out of the ISA wrapper.

But more importantly, it would be lunacy to put the money into 3% or less (net) non-ISA accounts if a 3% or better ISA can be had.

No, I was not referring to an ISA transfer, but to the scenario where somebody has old ISA funds, withdraws cash to fill all the high interest current accounts available, then returns the cash to an ISA before the tax year end.

I agree with your second two paragraphs. The OP as a HR taxpayer should stay in tax shelters.

innovate

£18K into £15k wouldn't work. Just thought I would point that out.

I fear some people are now pushing the 'use current accounts' message just as religiously as others are pushing the 'cash ISA at all costs' one. Whilst current accounts are great for some, they aren't for all, and I think particularly for the OP they aren't the place for his £18K ISA funds. Though I think I may be repeating myself now.

tell_it_how_it_is

Each to their own I suppose.

I cleared out a maturing ISA of £28k last month and decided to fill two 123 accounts. Having not subscribed this year, I'll wait anytime until March to see if one is good enough gets £15k back. And if by miracle its excellent it may mean I can add another £15k in early April.

I won't hold my breath though! :-)

molerat

123 2yr ISA is now showing as 2% with the regular 2yr at 1.5%.

evenasus

molerat wrote: »

123 2yr ISA is now showing as 2% with the regular 2yr at 1.5%.

I don't think much of their new website.

Archi_Bald

evenasus wrote: »

I don't think much of their new website.

urrrrrgh, seems they hired the same bloke that made a mess out of Nationwide's website.

I have just filled in their feedback form - click bottom right hand corner for it. My feedback is as ugly as their new site.