Using my ISA allowance fully

where_are_we

I wish to open a Fordmoney Regular Cash ISA £250/month at 4% fixed. I have not subscribed to any cash ISA this tax year. I intend to subscribe to a stocks and shares ISA this tax year using a different provider. If I manage to get £3000 into the Fordmoney Regular Cash ISA this tax year I then intend to subscribe £17000 into my stocks and shares ISA before the end of the tax year 2017-2018. I take it this is OK under ISA rules and fully uses my £20000 ISA allowance for 2017-2018.

eskbanker

Yes, you can pay into both a cash ISA and a S&S one in the same tax year.

Note that the terms of the new Ford account make it impossible to subscribe the full £3,000 into it during this tax year as the twelfth monthly payment will be after the start of 2018/19.

where_are_we

Many thanks - So I will not be able to deposit £250 today and set up a standing order for £250 starting the 1st of next month thus getting a 12th payment in on the 1st of April 2018.

eskbanker

It's not 100% clear at this stage, but there's some debate going on within another thread, starting at https://forums.moneysavingexpert.com/discussion/comment/72582344#Comment_72582344

One school of thought is that the twelfth monthly payment will need to be no earlier than eleven months after the opening one, thereby falling towards the end of April 2018 at the earliest, but that is down to interpretation. However, isasmurf helpfully observes that other payments can be made into one of their other cash ISAs and transferred later, which would allow £3K to be paid in from this year's allowance regardless of which interpretation of 'month' applies!

bowlhead99

where_are_we wrote: »

Many thanks - So I will not be able to deposit £250 today and set up a standing order for £250 starting the 1st of next month thus getting a 12th payment in on the 1st of April 2018.

Sounds correct (though see other feedback above and in the linked thread).

Imagine you open the account today 22 May and the anniversary date on which interest is paid and it reverts into their standard ISA on 22 May 2018. It seems from reading t&c that you can pay in a maximum of £250 in any or all of the 12, month-long periods which run between now and the anniversary date.

But, you would not be planning on putting anything at all into the account in the last month of that year (22 Apr 2018 to 22 May 2018) because you want to get all the £3000 into the account before the end of this current tax year which ends on 5 April 2018.

The only way you'd be able to get the full £3000 in - if you're not going to make any payment at all in the twelfth of the twelve months in which the account is running - is to make a double payment in the first month (eg £250 today and another £250 in two weeks) or the eleventh month (e.g. £250 on 22 March 2018 and another on 1 April 2018). Or in some other month in between.

Unfortunately double payments aren't allowed - you can't put more than £250 into the account in any one of the 12 months between the start and the end.

eightfoot2

could you not open 8x isa's and only make 10x payments into each (£20000) which would keep you in the 17/18 tax year ??

where_are_we

Steady on - that`s some first post! Spoke to Ford - only one 4% regular cash ISA allowed per customer.
Also confirmed - monthly payments are not calendar months but anniversary months, so I will only get in 11 payments of £250 before next April making a total £2750 contribution for this Cash ISA year 2017 - 2018.

smudger1964

Dont bother they have now closed applications as it was too popular

http://moneywise.co.uk/news/2017-05-24/ford-money-pulls-4-regular-saver-following-huge-demand?utm_campaign=NL-24-05-17&utm_content=1069736262377&utm_medium=email&utm_source=Emailvision

jimjames

eightfoot2 wrote: »

could you not open 8x isa's and only make 10x payments into each (£20000) which would keep you in the 17/18 tax year ??

How exactly do you propose to open 8 cash ISAs in a single year when only 1 is permitted?

eskbanker

jimjames wrote: »

How exactly do you propose to open 8 cash ISAs in a single year when only 1 is permitted?

It's now a moot point given the post before yours but Ford Money is one of the split ISA providers, enabling savers to subscribe to multiple cash ISAs concurrently....