Top Cash ISAs Discussion Area

KTF

1) Yes. Your understanding is correct.
2) You can transfer at any time.
3) If you want to put the new tax years allowance in the Flexible ISA then you will have to wait until the new tax year as it asks for an opening deposit when the account is opened.

bill86

I have £6200 to transfer from previous ISAs and the £5100 to invest in 10/11, I've been looking at the A&L ISAs, can someone tell me if I've worked this out correctly.

If I open the 3.5% Flexible ISA and invest the full £5100 in April, and I transfer the £6200 to the Direct ISA Issue 6 (2% because <£9000) then I will end up with £178.50 + £124 = £302 at the end of the year.

If I stick it all into the Direct ISA Issue 6 and get the 2.75% bonus rate, then I will get £310.75 and the convenience of having all my money in one ISA.

Does this look right? Thanks

Baldur

Assuming that the variable rate and variable bonus that apply to the Direct ISA do not change over the full year, your figures would be correct if you could deposit the full £11,300 on 1st April - but you can't, as your £5,100 2010/11 allowance can't be deposited until 6th April or later.

The Direct ISA bonus ends on 1st April 2011, so you cannot receive a full year's interest at the notional AER on the 2010/11 subscription.

EARN 2.00% GROSS P.A./AER (variable) on balances below £9,000. Rate includes a variable bonus of 1.50% payable until 1 April 2011.

BugsWabbit

My situation is similar to mouche and the response by Baldur seems to answer my main questions, however:

I have previous/current years' ISA money currently with Saffron, who are opening a new 10/11 ISA for me with that money and will therefore be an ISA "in force" for next year.

The A&L Flexible has a better rate of 3.5 but only for new money with no transfers in and is understood.

BUT, if I open a new A&L ISA for 10/11 amd is "in force" for next year as well, is it therefore legal to have two ISAs running with separate providers - only putting my new money into A&L?

Appreciate your comments for this ISA newbie and apologies for the confusion that it causes me.

Baldur

BugsWabbit wrote: »

I have previous/current years' ISA money currently with Saffron, who are opening a new 10/11 ISA for me with that money and will therefore be an ISA "in force" for next year.

No it won't, it's merely an ISA transfer.

'Opening' a new ISA requires new money to be subscribed (deposited) in the relevant tax year, yours will only consist of previous tax year's funds.

if I open a new A&L ISA for 10/11 amd is "in force" for next year as well, is it therefore legal to have two ISAs running with separate providers - only putting my new money into A&L?

Yes but remember that you cannot subscribe to it until on or after 6th April.

BugsWabbit

Many thanks Baldur - that clears it all up for me and I can go ahead with a new A&L ISA.

Just wish they would accept transfers in, then all my eggs would have been in one basket and minimised any confusion. Never mind...

Cheers

lennyp

Warning to others on Alliance & Leicester - I opened a new Direct Cash ISA online to make use of the good interest rate. Although I received an immediate confirmation that the account had been opened, the security details took a week to arrive. When I tried to log in, the webpage informed me that the account was locked out - even though I hadn't attempted a log in before. Contacted the A&L internet helpline (an 0844 number!) and was informed that a new PIN would be dispatched to arrive in 2-3 working days. It arrived after a week. First attempt - same message. Repeated process with the internet helpline (who seem to be unable to do anything except send out PIN numbers) and same thing happened. On third time around the buoy, internet help couldn't/wouldn't help sort out the problem (new PIN?). Given the A&L processes won't allow a telephone transfer of funds from a non-A&L account, I decided that I've no confidence in the "easy access" of A&L accounts and have cancelled the account.

All in all, an addled, incompetent operation which seems to be anti-customer. Compensation for calls was made, but not for wasted time. Pathetic, shameful and reprehensible. Be warned!

AbbieCadabra

just looking for a little basic advice please

me & husband both have cash isa's (previous years isa's are currently with Northern Rock, 1 year fixed rate issue from June 2009). we haven't paid anything in yet for our 2009/10 allowance as we needed to have some 'instant' cash savings available in case we needed to put some money into our business. i think we're now in a position to move £3600 each for 2009/10 into our current isa's.

as i'm doing this nearly at year end for 2009/10 i appreciate that we'll get hardly any interest for the 'top-up', but am i right in thinking it's best to use your allowance each year so you've got a bigger tax free balance to carry forward for future years?

thanks

Baldur

AbbieCadabra wrote: »

me & husband both have cash isa's (previous years isa's are currently with Northern Rock, 1 year fixed rate issue from June 2009). we haven't paid anything in yet for our 2009/10 allowance as we needed to have some 'instant' cash savings available in case we needed to put some money into our business. i think we're now in a position to move £3600 each for 2009/10 into our current isa's.

Are you sure that your NR fixed rate accounts permit additional subscriptions? They usually only permit them while that particular account is available to new savers. If not, you would have to look at an alternative provider for your 2009/10 allowances.

as i'm doing this nearly at year end for 2009/10 i appreciate that we'll get hardly any interest for the 'top-up', but am i right in thinking it's best to use your allowance each year so you've got a bigger tax free balance to carry forward for future years

Yes it permits you to continue earning tax-free interest on your 2009/10 allowance in subsequent years, as long as the ISA scheme lasts. Whether it's best for your circumstances, only you can decide.

AbbieCadabra

thanks Baldur, i hadn't even thought about not being able to top-up for 2009/10 on our current NR isa's. now you mention it, i seem to remember reading something ages ago & thinking 'pants, will have to something else for 2009/10'.

i've already transferred the money out of our savings in readyness for transferring to NR next week, do you think there's still time to get a brand new 2009/10 isa opened? i suppose i can always use my own bank if it will be quicker...

good job i asked! off to check NR t&c on our isa's now.