Advice please ISA?

md87

I have not had an isa account for a few years now. We are about to move house but only using equity and not money in the bank.

So my thought, if possible, was for me to open an isa, put as much as I can in before the deadline, 6th april I believe, get the interest, then move the money back to my current account. Is this possible? Which account should I be looking at? What rate will I get?

Thinking on about 6-8k could get a few hundred pounds for nothing. But will def need to access the money straight after I got the interest, as will have solicitors fees etc to pay when the move finally goes ahead.

Many thanks for any advice.

Flugelhorn

depends how long you leave the money in - if the interest rate is 2% then you'll get £120 only if you keep the money in for the whole year. if it is only a few weeks then you won't get very much

md87

So if I open one now, put in 8k, I won't get the full interest on/after 6th april? It was just an idea as got a few thousand in bank but I am expecting some hefty bills soon.

Eco_Miser

Rates quoted are per annum that is, for each year. Interest is actually paid at 1/365th of that rate for each day that the money is in the account, so unless you've got a lot of money, you'll only get pennies between now and April 6th (Deadline is April 5th BTW). You might get more leaving it in your current account (I certainly would).

jimjames

md87 wrote: »

So if I open one now, put in 8k, I won't get the full interest on/after 6th april? It was just an idea as got a few thousand in bank but I am expecting some hefty bills soon.

Yes you'll get full interest for the time the money is in the account.

Were you expecting a years worth of interest for keeping it in account a few days? If so why would a bank pay interest on money for time you haven't deposited it with them? That would be like having to pay for a loan you've not received the money for.

If you do want few hundred pounds for little effort then opening current accounts would be more lucrative

Thrugelmir

md87 wrote: »

So if I open one now, put in 8k, I won't get the full interest on/after 6th april? It was just an idea as got a few thousand in bank but I am expecting some hefty bills soon.

Instant access accounts are paying low rates of interest currently.

Jsscmm

The posters above have covered the issue you have... You only get interest earned whilst the account is opened and the cash is there.

If you are looking for a greater return on "a few thousand" then a look through the banking boards and the use of current accounts may help. 5% pre tax or even 6% on regular savers is possible.

For a shorter term option for a few hundred, opening accounts can be profitable. Halifax, Yorkshire bank, first direct and coop all have incentives, throw in quidco or top cash back / referral schemes and you can increase this further. M&s offer gift cards. Please do research the cons and requirements as well as the pros here though.

Finally you could consider a balance transfer or purchase credit card at 0% depending on what form you bills are in. There are details on the options in the stoozing or credit card boards... However before taking on debt to managed other debt, ensure that you know what you are doing and have a plan to close it all down if needed.

HTH