£ in and out of cash isa

catoutthebag

Have the rules changed whereby if you make a withdrawal, you can still add the money back in the same tax year so that you still have the same allowance? Or have the rules not changed yet?

;*)

alanq

Rules were due to change in Autumn 2015 but changes have now been delayed until April 2016.

http://www.thisismoney.co.uk/money/saving/article-3219018/Government-breaks-promise-make-cash-Isas-flexible-weeks.html

jimjames

If you're looking to put money in and out is an ISA really the best option when current accounts pay vastly better interest and are far more flexible?

catoutthebag

jimjames wrote: »

If you're looking to put money in and out is an ISA really the best option when current accounts pay vastly better interest and are far more flexible?

That's why I was asking. I don't often put money in and out of isa but a situation is on the horizon where it was being considered briefly for a payment.

Archi_Bald

jimjames wrote: »

If you're looking to put money in and out is an ISA really the best option when current accounts pay vastly better interest and are far more flexible?

I agree with that, and I would go further: even if you don't take money out of your cash ISA, you should ask yourself whether it is actually the best option. For the vast majority of people it won't be.

catoutthebag

Archi_Bald wrote: »

I agree with that, and I would go further: even if you don't take money out of your cash ISA, you should ask yourself whether it is actually the best option. For the vast majority of people it won't be.

But when an isa becomes the best option and you have thousands saved in whatever 5 or 6% current account with lots of annoying hoops to jump through like having existing product with them or transferring whatever amount every month etc, then you come to open an isa, you can only put x limit in?

catoutthebag

jimjames wrote: »

If you're looking to put money in and out is an ISA really the best option when current accounts pay vastly better interest and are far more flexible?

Just had a look at reg savers and current accounts.

Switching current accounts
1 to 2 regular payments in
Sometimes limited withdrawals
Setting up online banking for each
Messing around with standing order dates and set up
Having debits to come out Regularly for some

Not really 'more flexible'

I'm currently getting 1.5 to 1.6% isa on 10k. I don't know if it's worth me shutting it down and losing my tax free allowance to start peeing around with a plethora of accounts. ?

Archi_Bald

catoutthebag wrote: »

I'm currently getting 1.5 to 1.6% isa on 10k. I don't know if it's worth me shutting it down and losing my tax free allowance to start peeing around with a plethora of accounts. ?

For £10K, you can make 3-5 times that much outside an ISA.

Your allowance is £15,240, so you can't exactly "lose" it if your total savings is £10K.

You are on a Money Saving Expert forum, so you'd expect people to make the best out of their money, and not settle for mediocre rates and deals.

G_M

What happens at (tax)year end?

If you top up your ISA, say, in 2015-16, then withdraw, say, half of it, can you replace that half in 2016-17 as well as topping up with the full 2016-17 allowance?

One reason for an ISA over other savings might be the long-term benefits, but these would not apply if you withdraw and lose the allowance.

jimjames

G_M wrote: »

What happens at (tax)year end?

If you top up your ISA, say, in 2015-16, then withdraw, say, half of it, can you replace that half in 2016-17 as well as topping up with the full 2016-17 allowance?

One reason for an ISA over other savings might be the long-term benefits, but these would not apply if you withdraw and lose the allowance.

If you have £10k of savings then the limit is irrelevant. If ISA rates do ever increase then you can plonk it straight back in as you have a new allowance come April. The allowance is £15240 EVERY year so after 10 years you could put £152400 in - how many people have that sort of savings.

When many people posting recently are saving for house deposits in a cash ISA then the long term benefits are also completely irrelevant - if you are spending money in the next few years then you should be getting the best possible rates on it, not chasing tax benefits that will lose you money.

catoutthebag wrote: »

Just had a look at reg savers and current accounts.

Switching current accounts
1 to 2 regular payments in
Sometimes limited withdrawals
Setting up online banking for each
Messing around with standing order dates and set up
Having debits to come out Regularly for some

Not really 'more flexible'

I'm currently getting 1.5 to 1.6% isa on 10k. I don't know if it's worth me shutting it down and losing my tax free allowance to start peeing around with a plethora of accounts. ?

Down to you really. I get over 5% on all my savings of £10k with 4 accounts at 2 banks, it's really no hassle at all to setup. I'm also unsure where you get the idea that limited withdrawals, these are current accounts and you have more access to money for moving it than any cash ISA. Not only internet banking but mobile app as well as VISA debit card.
I'd describe that as far more flexible but each to their own.

catoutthebag

I think I'll close my isa next week and try ope n other accounts. Hopefully it's not a ball ache. The 3% santander would be ideal but always looked a ball. Ache when it was first launched.

Thanks for swaying me