Top Cash ISAs Discussion Area

supremetwo

Stompa wrote: »

Isn't that fairly standard wording that appears on most ISA application forms?

For example:

M&S (for example) give a bit more of an explanation:

I apply to subscribe for a Cash ISA for the tax year 2009/10 (6 April 2009 to 5 April 2010) and each subsequent tax year until further notice. All our applications are accepted on a rolling basis, which means that if you wish to save in the next tax year you will not have to complete a new application form. Please note, however , this is an optional arrangement and you are under no obligation to deposit further amounts with us.

Thanks for the clarification - I'd not noticed the clause in previous ISA applications.

The Google also shows up a previous moneysavingexpert discussion:
t=1440369 (I'm not allowed to post links ).

Nessie23

supremetwo wrote: »

Thanks for the clarification - I'd not noticed the clause in previous ISA applications.

The Google also shows up a previous moneysavingexpert discussion:
t=1440369 (I'm not allowed to post links ).

I have also seen this wording and it is misleading to say the least. Maybe HMRC should consider joining the "Plain English Campaign" :mad:


Thanks for the link supremetwo a few more posts (I think) and you'll be a able to post links

if anyone needs the full link here it is
http://forums.moneysavingexpert.com/showthread.html?t=1440369

Baldur

Nessie23 wrote: »

I have also seen this wording and it is misleading to say the least. Maybe HMRC should consider joining the "Plain English Campaign" :mad:


Thanks for the link supremetwo a few more posts (I think) and you'll be a able to post links

if anyone needs the full link here it is
http://forums.moneysavingexpert.com/showthread.html?t=1440369

The HMRC example wording can be found in the Guidance Notes for ISA Managers

4.11 Applications must specify the first tax year to which they relate. They must also include a declaration by the applicant that the application is to subscribe to a cash ISA or a stocks and shares ISA, as the case may be;
For example the application could read “I apply to subscribe for a cash ISA for the tax year 20 / and each subsequent year until further notice.”

and the reasoning behind the provision for 'continuous subscription' is:

Applications to subscribe to an ISA
4.1 Investors must apply to subscribe to an ISA. Applications are valid for
• subscriptions made in the year of application, and
• subscriptions made in each successive year following the year of application, in
which the applicant subscribes to the ISA.
This allows, for example, a continuous subscription by direct debit or standing order, provided at least one payment is made in each tax year (but see paragraph 4.17 where the application is valid for one year only).
The frequency, amount, and method of payment are matters for the ISA manager and the investor.
4.1a Subject to paragraph 4.2, a continuous application made before 6 April 2008 will continue to be valid after that date.
4.2 Applications cease to be valid at the end of a tax year in which the investor fails to make a subscription. Where this happens, the investor must make a fresh application before subscriptions can re-commence.

System

rb10 wrote: »

I think this depends on whether you trust Nationwide to only change their rate (roughly) in line with base rate changes, or if you think they might make additional cuts.

Personally, I would trust them to do this for a year or so, so would be happy having this account.

Summer01 wrote: »

Thanks rb10, I hadn't thought of it like this, as long as they held out for a year it would be ok. Then can rethink next year. I already have an account with them so it might be straightforward to transfer my existing ISA to them. Maybe it's easier to add the new year ISA allocation to this also to keep it simple.

Is your ISA counted as part of the £50k limit in each bank? I was talking to a friend about the Nationwide ISA and she has just put some money into a Nationwide account after selling property and therefore isn't sure there is room in there for her ISA, if this makes any sense? I wasn't sure to be honest...

KingL wrote: »

Yes it is.

Thanks KingL and rb10. Unless there is another good deal out there really worth looking at, I am considering moving to Nationwide at 2.75%. According to their website you can do this via an online application so I may not need to go into the branch. I don't really want to put my money in a 2 or 3 year fixed ISA..

System

Does anyone know what happens to the Halifax Direct 3% ISA please after the one year fixed rate runs out. Have they said what it will change to, as I looked on their website but couldn't find any information.

Are business company funds treated totally seperate from personal accounts i.e. if I have a business account with Santander will it be totally seperate from the £50k limit on a personal account please?

hope123_2

Summer01 wrote: »

Does anyone know what happens to the Halifax Direct 3% ISA please after the one year fixed rate runs out. Have they said what it will change to, as I looked on their website but couldn't find any information.

Are business company funds treated totally seperate from personal accounts i.e. if I have a business account with Santander will it be totally seperate from the £50k limit on a personal account please?

I just got a letter today from the Halifax, to say that I can transfer my current Halifax Direct Reward to a 2 year Fixed Rate at 3.50% AER/gross PA.

Otherwise it will drop to 0.50% AER/gross PA.

Oh and also, it says that I can't add my new 2010 allowance to it (which seems crazy to me or am I not reading it right ?).

I assume that everyone with a Halifax Direct Reward ISA will get the same letter ?

I have to return the signed letter by 1st April, but not sure if I can get a better rate elsewhere without the 2 year fixed rate - does anyone know ?

rb10

hope123 wrote: »

Oh and also, it says that I can't add my new 2010 allowance to it (which seems crazy to me or am I not reading it right ?

You can add your 2010/11 allowance to the ISA Direct Reward (after 6th April).

But, if you fix the account before 6th April, into a Fixed Rate ISA Saver (i.e. not the 2.6% Reward account), then you will not be able to add your new allowance into that account. You can, however, open a new account, either with Halifax or elsewhere, and put your 2010/11 allowance in there.

If you switch your current ISA Direct Reward (3%) to the new ISA Direct Reward (2.6%), then you will be able to add your 2010/11 allowance to the same account, after 6th April.

wmbj

Help, I want to save for my daughters university in 16 months, a lump sum of £1000 and £400 for 16 months. I used the ISA calculator and it quoted me £8,398

I contacted First Direct and they say this is not correct, as I should earn something like £2 a month.

Need some help:D

Baldur

£1,000 plus £400 per month would take you over the annual ISA allowance of £5,100 (from 6th April) in under 11 months, so you would not be able to save at that rate for the full 16 months.

wmbj

So if I saved £5,100 from the 6th April what interest would it ear me at 2.75%