Use 2014/15 allowance in a 2013/2014 ISA. With metrobank seems possible?

unodostres

Hi guys, I opened an ISA account with these guys last financial year. I hadn't opened another one this FY because the rates were even worse than the 1.65% I got last year, but checking my online banking account I see this message:

i.imgur.com/DPYRAoE.png

I went to my local branch and asked, and they confirmed I didn't need to open a new account in order to use this FY's allowance. I can just pay money into this ISA and benefit from the higher interest.

Have you guys had any similar experiences?

Thanks

jimjames

How much are you putting in?

Are you aware that an ISA is pointless for most people as rates are far better outside? You quote 1.6% yet you can get 5% and pay tax but still be ahead.

unodostres

Yes I know about the 5% trcik posted on this website, etc. and may do it in the future. My savings account is giving me 1% and it's not tax free, so that ISA would give me near twice the money and you don't have to worry about anything.

I have 9k on my savings account, my idea is to put 6-7k on the ISA and leave 2k for emergencies and that 5% loophole.

Archi_Bald

Why not put the entire £9K into current accounts that pay 5,4 or 3%? At least until next March. There's just about no point to put any new money into any cash ISA before then.

It's not really trickery or loopholes....it is just common senses, in your own interest.

Vortigern

unodostres wrote: »

I went to my local branch and asked, and they confirmed I didn't need to open a new account in order to use this FY's allowance. I can just pay money into this ISA and benefit from the higher interest.

Have you guys had any similar experiences?

Yes, it's absolutely standard. You don't need to open a new ISA each tax year, you can just continue to subscribe to the same one, but the interest rate may not be very good.

That said, I wouldn't bother at the moment because ISA rates are very poor and current accounts can earn 5% before tax.

ETA: I think they were lying about the "higher interest"

unodostres

Thanks guys. I don't know any account that would give me 5,4,3% interest before tax, let me put the whole 9k, and not require direct debits (I have none). Do you?

bsms1147

unodostres wrote: »

Thanks guys. I don't know any account that would give me 5,4,3% interest before tax, let me put the whole 9k, and not require direct debits (I have none). Do you?

No, noone does*. That's the point though, if you want those kind of rates you need to put in a modicum of effort.

(*Unless you truly meant '3% interest before tax', in which case Santander 123 comes close, though of course you'd need some direct debits there)

jimjames

unodostres wrote: »

Thanks guys. I don't know any account that would give me 5,4,3% interest before tax, let me put the whole 9k, and not require direct debits (I have none). Do you?

TSB don't require direct debits but will only take £4k.

However £4k at 5% is substantially more than £9k at 1%.

colsten

Getting direct debits is easy. Just have a read round the forum and you'll find plenty of suggestions.

Eco_Miser

Slightly old, but still relevant thread on direct debits: https://forums.moneysavingexpert.com/discussion/4168667

unodostres

Thanks guys,

I will take a look at this this weekend and pop into a branch if I find it interesting, but the truth is that in order to get higher % there is some hassle, like having direct debits (or creating some and lose money) or paying in money every month (easy to deal with standing orders both ways)