Never, ever, ever, ever withdraw money from a cash (N)ISA!?

jem16

Daz2009 wrote: »

Where is this 5% TSB account you talk about ?

TSB current account - 5% interest on balances up to £2000.

http://www.tsb.co.uk/current-accounts/

jimjames

jem16 wrote: »

TSB current account - 5% interest on balances up to £2000.

http://www.tsb.co.uk/current-accounts/

But you can have 2 so total £4000.

Plus nationwide also have 5% account on £2500.

GingerFurball_2

Gram_Parsons wrote: »

NISA is just the new term for an ISA - no difference.

You could get 5% before tax on £4000 (or more with joint a/cs) via TSB then stick the rest in Santander at 3% before tax on balances between 3K and £20K and also get cashback on selected DDs which can be quite decent.

That's what I'd do.

Nobody except Martin Lewis uses the term 'NISA'. Why he does this I have no idea.

Archi_Bald

Actually, some ISA providers and some other journalists do, too. I agree there seems to be no good reason now for calling ISAs NISAs, or worse still, "new NISAs". What will they be calling the thing if another couple of changes happen? NNNNISA?

Interestingly, the HMRC website has not been updated with a name change, nor have any of the detailed HMRC instruction documents for the ISA providers. I sincerely hope that HMRC will not ever waste taxpayers' money on a meaningless name change.

Even more interestingly, TISA, the industry body with over 140 member firms which - amongst other things - works out coherent ISA implementation and management details, states:

Q: Will ISAs have to be renamed as New ISAs or NISAs after 1 July 2014?
A: No, the ISA regulations will remained unchanged. The use of the New ISA terminology was an HM Treasury approach to help illustrate the new flexibility and more generous subscription limits of the ISA after 1 July 2014.

http://www.tisa.uk.com/technical_faq.html

Cactus_Jack

If one had 15k in an ISA now, for arguments sake, which is the new limit. I am guessing there is no reason not to withdraw this into a high interest current acccount, as one could always put the 15k into a new ISA down the line? Nothing is lost?

colsten

This is correct.

MARTYM8`

Given the poor interest rates I would question whether cash NISAs are worth it anymore unless you are a higher rate taxpayer or can invest long term on a fixed rate.

Many barely pay 1% instant access - regular savers can pay far more as can current accounts.

colsten

I can't wait for the day when nobody calls ISAs NISAs any longer.

Mr_K

Never, ever, ever, ever withdraw money from a cash (N)ISA

Martin loves tabloid hyperbole. Utter rubbish statement, no point in having it if you never withdraw - it'll go to the Govt. in the end ....

MARTYM8`

I quite like the abbreviation NISA - its very apt.

It stands for Negligible Interest Savings Account - which these days sums up most ISAs.:D