Sorry - a newbie question!

garynuman

Hi all.


I have read Martin's guide to ISA's but am a bit confused as what to do now the deadline is here.


After saving £7000 during 2014-15, I received interest on my savings yesterday y. I appreciate that this needs to be left in to be kept tax-free to maximize benefits.


As I'm not even at 50% of my £15000 allowance, can I continue to top this ISA up? Or must I create another one?


Many thanks


Gaz

colsten

What is the interest rate you get?

jimjames

garynuman wrote: »

As I'm not even at 50% of my £15000 allowance, can I continue to top this ISA up? Or must I create another one?


Many thanks


Gaz

Assuming the rules of the account allow it then you can continue to pay into it. Exceptions are likely to be fixed rate accounts that don't allow further top ups.

Whether that's the best option depends on how much you're saving and the rates you get.

garynuman

What is the interest rate you get?

2.69% if I recall correctly. It's a Nationwide ISA


I have saved £7000 during 2014-15 and am looking to either open a new ISA or add to this one (if indeed it is allowed)

jimjames

garynuman wrote: »

2.69% if I recall correctly. It's a Nationwide ISA


I have saved £7000 during 2014-15 and am looking to either open a new ISA or add to this one (if indeed it is allowed)

Worth checking. If correct that rate is higher than any instant access current ISA available.

garynuman

Hmm... Just logged back onto Nationwide and the new rate is 1.25%! (this has changed since I logged on at the weekend) Doh!


The date of the next interest payment date is now 31 March 2016 so I guess I will just add my 2015-16 cash ISA allowance on top.


Unless I find a better one (with higher APR) and transfer the current balance over and add to it.


Gaz

Archi_Bald

If you have less than £15,000 in savings, why bother with a cash ISA at all? Current accounts and/or regular savings accounts pay you lots better interest than a cash ISA.

garynuman

Archi_Bald wrote: »

If you have less than £15,000 in savings, why bother with a cash ISA at all? Current accounts and/or regular savings accounts pay you lots better interest than a cash ISA.

To be honest I just started with an ISA as it puts the balance "out of sight - out of mind!" and (sort of) keeps me from spending it!


I'll check tonight to see if there's a better way.

Vortigern

garynuman wrote: »

The date of the next interest payment date is now 31 March 2016 so I guess I will just add my 2015-16 cash ISA allowance on top.

You don't have to wait until the next interest payment date. If you close the account, or transfer out, they will calculate your interest up to the date of closure.