Top Cash ISAs Discussion Area

leaphaze

rb10 wrote: »

No, you can have as many ISAs as you like at any one time. What's not allowed is to pay new money into two different ISAs during the same tax year.

As this (presumably) relates to money that was paid in during a previous tax year (08/09 or earlier), then there are no restrictions on what is done with it, as long as they follow the banks' ISA transfer system.

I take your point about interest relating to pervious year's contributions, but this could not apply to interest relating to this year's contributions since you cannot have more than one provider for the current year's ISA. Which would be the case if you were allowed to keep the interest for the current year with one provider, whilest moving the capital for the current year to another.

However, I do wonder whether this situation would actually arise since in my experience the original provider would only apply the interest if the account were being closed (otherwise they'd end up paying interest on interest). If the current year's capital only were being moved (leaving previous years behind), I suspect the interest on the current year would not be paid early (i.e. it would be paid as per the terms and conditions).

However, it's an interesting thought. Maybe I'm wrong and you've hit on a way of squeezing a little extra interest into an ISA. Possibly this would only work with some providers but none I've actually used have allowed this in the past.

Baldur

leaphaze wrote: »

I take your point about interest relating to pervious year's contributions, but this could not apply to interest relating to this year's contributions since you cannot have more than one provider for the current year's ISA. Which would be the case if you were allowed to keep the interest for the current year with one provider, whilest moving the capital for the current year to another.

The current tax year's ISA (capital & interest) must be transferred whole to maintain its ISA status and any such transfer is documented for HMRC audit - partial transfers are only permitted for previous tax years'/year's ISAs.

SKIPPY

Am looking to open my first isa with the full allowance, A&L have a two year fixed at 3.5% is this O.K or should I go for a 1 year isa at a lower rate?

Baldur

SKIPPY wrote: »

Am looking to open my first isa with the full allowance, A&L have a two year fixed at 3.5% is this O.K or should I go for a 1 year isa at a lower rate?

It's your choice - noone knows with any certainty what will happen to interest rates in the next two years.

Personally, I wouldn't fix for more than a year, if at all, at the moment; preferring to have the flexibility to transfer my funds quickly.

lisyloo

I wouldn't fix for more than a year at the moment but thta's because I expect interest rates to rise.
I coud be wrong, so it's speculation.
You have to decide what's best for you as no-one has a crystal ball, however from the current 0.5 level it has to be almost certiain that base rate will rise medium term.

kivoowl

Hi all, I used to be a member on here before when I was fighting to re-claim my bank expenses (failed...), but forgot my password so here I am again under a new guise and needing help on ISA's!

I currently have a Nationwide ISA that offers 0.25% AER (coming just behind Zimbabwe National Bank...) and want to switch to a higher interest ISA from another provider.

I'm tempted by Standard Life's 2.65% AER ISA but I prefer to go into a branch to do my transacations and am unsure how i'd withdraw/deposit if it's all online? I've read of BACS (or is it BUCS?) and have no idea what they are!

The more convenient one for me would be Lloyds TSB's 2.0% AER ISA (although after 12 months it drops to 1.0% unless I read it wrong). A couple of questions - I have filled out the transfer form on Lloyds' website - do I just send it to them and let them do the rest? Also, do I get a passbook like I have with Nationwide to keep track of my transactions?

Thanks for any help offered!

Baldur

kivoowl wrote: »

The more convenient one for me would be Lloyds TSB's 2.0% AER ISA (although after 12 months it drops to 1.0% unless I read it wrong). A couple of questions - I have filled out the transfer form on Lloyds' website - do I just send it to them and let them do the rest?

Yes - do exactly as printed at the top of the ISA Transfer Form.

Also, do I get a passbook like I have with Nationwide to keep track of my transactions?

No, LTSB is a bank, not a Building Society.

leaphaze

kivoowl wrote: »

I currently have a Nationwide ISA that offers 0.25% AER (coming just behind Zimbabwe National Bank...) and want to switch to a higher interest ISA from another provider.

I'm tempted by Standard Life's 2.65% AER ISA but I prefer to go into a branch to do my transacations and am unsure how i'd withdraw/deposit if it's all online? I've read of BACS (or is it BUCS?) and have no idea what they are!

I've just applied for the Standard Life ISA, after my Halifax fixed rate ISA matured (4%) and got transfered into their variable rate ISA (0.10%) :eek:

Specifying a bank a/c on the application form sets up the BACS feature. Once the ISA is setup and running, you just logon to the Standard Life website, click a few buttons and specify an amount to transfer funds in or out via this bank a/c. BACS usually takes a few working days for the money to arrive.

kivoowl

Cheers guys, I'm veering towards the Standard Life ISA now, although i'm still a bit put off by the fact I can't do my transactions in person.

I have my current account with Barclays, do I just give the details of that account to SL and whenever I want to put money in/out of my ISA, it goes in/out of there?

How do I transfer to SL? The LTSB transfer form seems simple enough but I can't find any such form with SL?

Baldur

kivoowl wrote: »

How do I transfer to SL?

See http://www.standardlife.co.uk/content/savings/personal/cashisa_qa.html#transferisas

.......We will send you two ISA Transfer Authorisation forms in the post. You should complete these and return one to us and send the other to your current ISA manager.