Quick Maths check..

Skint_Badger!

If i were to invest £3000 into the BMW isa at 6.7% would i get a return of £201?

McSaver

that is indeed correct over a period of 1 year.

Skint_Badger!

Thanks for that.

Am i allowed to open another ISA with BMW, but in my partners name, and in effect get double the interest on the £6000 invested, thus making a return of £402?

Is this legal, is it still tax exempt?

LittleVoice

Well, it wouldn't really be you opening it.

As you know full well, the "I" in ISA is for Individual. If a your partner's name appears as the account holder then, of course, that is the individual to whom the £3000 and tax-free interest belongs. What they choose to do with the money in the future is up to them.

It's legal - it's their money, they have to sign the forms and provide their NI number etc. It's tax exempt because that's what ISAs are.

And it's too late in the year to get the full £201 in the current tax year - that only works for accounts opened on 6 April (a Bank Holiday in 2007). But perhaps the BMW account pays on an account year, not a tax year - I haven't checked.

Skint_Badger!

And it's too late in the year to get the full £201 in the current tax year - that only works for accounts opened on 6 April (a Bank Holiday in 2007). But perhaps the BMW account pays on an account year, not a tax year - I haven't checked.[/quote]

On the BMW web site it states that the interest rate is guaranteed at 6.70% gross/AER pa until 04 September 2008.

LittleVoice

The rate can be guaranteed but if they pay and compound the interest on 5 April, don't expect to receive £201 on that date (only someone who opened the account on 6 April 2007 would get that on that date). That's what I was getting at - as you had been asking about the amount of interest you would receive, not its rate.