Understanding ISA's & Savings

essex30

Hi everyone,

I am just trying to learn about ISA's, if an ISA says 2.5% is that every month or per year?

At the end of the fixed term, what happens to the money? Does it stop collecting interest? How do I move it to a new ISA with a better rate?

Can I put as much as I want in there?

I am thinking about opening 3 ISA's, one that I can access in case I ever need it, and two where they are fixed ISA's so I cannot touch it, and I want to pay into them each week? Then every March/April look for new interest rates?

How often do they add the interest onto what's in there?

Thank you,

Matt

Eco_Miser

Every year.
Depends on the Terms and Conditions, but generally, yes.
Get the provider of the new ISA to transfer it in.
Limit of, currently, £15000 per financial year.
You can only pay into ONE cash ISA per year. Nationwide manage their ISA's differently and may let you do what you want.
Monthly or yearly, depending on T&Cs

. Currently, certain current accounts pay rather more than ISAs.

essex30

Thank you

How much do the current accounts give? But the point of the ISA's is that I cant touch the fixed ones? I am not a great saver you see so I need the fixed ISA's.

Why do people switch ISA's? Does the interest on your current ISA stop after 12 months or so?

Thank you

thenudeone

Most or all of your answers are probably answered here: http://www.moneysavingexpert.com/savings/ISA-guide-savings-without-tax

Nationwide are one of the few institutions that allow you to split your ISA allowance into several "pots", so you could put £1k into a Nationwide variable instant access ISA and £1k into a Nationwide Fixed term ISA if you wanted.

Newcastle BS is one of the others which allows you to do this.

At the end of the fixed period, ISAs usually change into a standard instant access ISA, usually paying a poor interest rate, which is why it's normally best to transfer them somewhere else.

It's possible to get up to 5% on a current account (far more than any Cash ISA) but it does require some work to ensure you meet the eligibility conditions.

colsten

Depending on how much money you want to save each month, and for how long you want to keep it, a normal Regular Saver could be the most suitable for you. Many pay better interest than any ISA, have a fixed term of 12 months, fixed rate of interest, and allow monthly deposits.

There is a thread on the forum listing all the bets regular savings accounts. There is also an article on the main site about Regular Savings.

essex30

Ah fantastic, thank you everyone!