Small sum of money to invest - Help please

jem16

Amnesia180 wrote: »

Another £6k?

Sorry that was my fault - a typo. I meant you can put in another £3k giving £6k altogether plus interest gained from year one.

Sorry, I don't think I explained myself properly.

2007 - ISA 1 has £3k in it.
2008 - ISA 1 still has £3k in it. I have another allowance so put another £3k into it. Now I have £6k in ISA 1.

This is correct

2009 - I find interest rates have changed etc. I open ISA 2 - Can I transfer all £6k from ISA 1 into ISA 2 and still be allowed a further £3k for my 3rd year?

Yes you can, provided it accepts transfers in.

Or will I have to keep the £6k in ISA 1 to continue getting the interest.

No you don't. If you transfer you will get the interest rate of wherever you are transferring to.

But the interest rate at the moment seems pretty good. And like you said, most ISA don't accept transfers (at top paying rates) so I'm not really losing out.

Thanks again.

So far it is. However the NS&I ISA is only guaranteed to stay 0.55% above the base rate until at least 5th April 2008. This may or may not change so just keep an eye on it.

Stavros_3

Amnesia180 wrote: »

Say I get £3k in my first year.. I'd be allowed a further £3k for my second year - does this mean I could have a total (potentially) of £6k in one ISA account? Or does it mean I'd need a different mini ISA for the second allowance of £3k?

Hope that makes sense :-)

Hi, you can put in £3000 each tax year (April to April) so for example,On 6th April 2006 you put 3k in an account that pays say 5% (you can get much better) for the tax year 2006/7 Your account in april 2007 stands at £3150 (with the interest) in April 2007 you put in a further £3000 making your Isa £6150. Then in April 2008 your Isa stands at £6337.50 (or there-abouts) In April 2008 the rules change because of the latest budget, you are able to put in a an inceased amount of £3600 making your ISa worth £9937.50p as at April 2008. This will be worth with the 5% interest at April 2009 at £10,405 (roughly), I think my maths are correct, but remember this has been calulated at 5%, a lot of Isa's are now 6% plus. So on my figures of an investment over 3 years of £9,600 your ISA will be worth £10,405 giving you an interest profit on those 3 years of £805

Amnesia180

Excellent!! Thanks everyone.
Amnesia

Amnesia180

Last thing regarding this (i promise) it says minimum further deposit - £250. Does this mean it wants a regular £250? Or does it just mean that I have to deposit at least £250 whenever I make a deposit?

Aegis

Amnesia180 wrote: »

Last thing regarding this (i promise) it says minimum further deposit - £250. Does this mean it wants a regular £250? Or does it just mean that I have to deposit at least £250 whenever I make a deposit?

Judging by the wording, I'd say the latter

Amnesia180

Okay, are there any other savers out there matching NS&I that don't need such a high amount every time? It just means I need to save a couple of months before being able to deposit anything. But I get paid weekly so it will take a while.

My friend has a nationwide ISA and can contribute as much or as little as she likes.