Top Cash ISAs Discussion Area

10_66

BB78 wrote: »

Although the guide says if you have an existing ISA you shouldn't withdraw your funds to open a new ISA in the next financial year you should transfer, with the limit being increased to £5,100 as from 6th April 2010 for the under 50 and providers offering higher rates of interests on ISA's that do not allow transfers in, if I have £5,100 or less in a 2009/2010 ISA do I have to find a new ISA that allows transfers or can I withdraw my funds closing the old ISA and open (or start funding) a new ISA at a better rate as from 6th April??

Or to put it simply, can I open a Flexible ISA with A&L now to get the 3.5% rate (but not add any funds yet) and on the 5th/6th April close last years ISA as the rate is set to plummet, withdraw all my funds and on the 6th April pay anything up to £5,100 into the new A&L ISA??

Assuming the 3.50% is still on offer, you can do this. You don't have to wait until 5 April to close the old account (unless it's a fixed rate account, or with restrictions), as the interest earned on it will be paid up to closure date. BUT, if you do close the 09/10 ISA rather than transfer, you will lose the tax free status on those funds for good.

uiui

yeh it suits me 2 ,transferred most of maturing fixed isas-seems 2 be worth it if u have a fair amount 2 put in.
4 new tax yr im putting 4200 in and 100 a month for nine months.
if in unlikely event i transfer some out that bit would only get 2%.

gunmaker

Pug77 wrote: »

A&L customers check your statements.

Just a quick heads up about the A&L Flexible ISA account.

I recently opened this when it was available for application online. The statement was received in the post today and shows the account title as DIRECT CASH ISA ISSUE 5. The reverse of the statement shows this to have an interest rate of 2.00%

Only the paper statement shows the account as a DIRECT CASH ISSUE 5 ISA.

Pug

The Flexible ISA from A&L has account numbers beginning with 897 or 898.

Direct ISA Issue 5 accounts begin with either 384, 394 395.

Check your ISA account number and you should know which account they've opened for you.

Incidently Direct ISA Issue 5 accounts haven't been available for some time.

System

I was going to open an A&L account at 3.5% for 2010/2011 on 6th April, I didn't think it was possible to open it beforehand as you can't put any money it yet for that particular financial year.

If I have missed out I may consider the Nationwide one at 2.75% instead..

gunmaker

Summer01 wrote: »

I was going to open an A&L account at 3.5% for 2010/2011 on 6th April, I didn't think it was possible to open it beforehand as you can't put any money it yet for that particular financial year.

If I have missed out I may consider the Nationwide one at 2.75% instead..

Get down your local branch on Monday at the latest. You can open it now and fund it on/after April 6th.

System

Thanks gunmaker for the tip.

I only have a Santander by me at work, so not sure whether I'll get the chance unfortunately. I was under the impression you couldn't open it without funding at least with a £1 and I couldn't do this until the 6th as already have last years ISA used up..

Edited to add that I've just applied online for the Nationwide ISA at 2.75%.
I've already got an account with them so for ease I'll just move some funds to it on 6th April.

BB78

10_66 wrote: »

Assuming the 3.50% is still on offer, you can do this. You don't have to wait until 5 April to close the old account (unless it's a fixed rate account, or with restrictions), as the interest earned on it will be paid up to closure date. BUT, if you do close the 09/10 ISA rather than transfer, you will lose the tax free status on those funds for good.

Thanks 10-66. I wouldn't want to close my 09/10 ISA until the 5th because if I did I would have to pay the money into a savings account or try and get the bank to give me a cheque or bankers draft because I can't pay in to the new ISA until the 6th April, also I might aswell earn interest up to the last minute.

What does it mean in real terms losing the tax free status? Would the tax be deducted before my money was given back to me? Is that because I am closing 1 ISA to open another? Because what if I was closing the account and spending all the money (I wish!!) Does it make any difference closing the account on or after the end of the financial year?
Sorry if I'm being thick but I don't really know/understand the ISA rules!

ggoodge

I understand that all the shiny new interest rates apply to the money we invest today, but what about the money from previous years investments?
If I invest my new allowance on top of my previous investment, does the rate apply to the total or just the new money?
I've got a TOISA with a few quid in that's just been left to tick over. From the website it looks like it should be earning a paltry 0.5% but it seems to be earning more like 3-4%, why is that?
If old investments only get low rates then would we not be better off shifting it into fixed rate bonds and the like or does the tax-free incentive make leaving it where it is a better option?
Sorry if I'm being a bit thick but money went out of fashion in my wallet when I had kids!

bloaty

Thanks for all your comments.

I tried to open an online account at the end of February with the view to funding it in 2010/11 but I received an e-mail stating there had been a problem with my application and thought no more about.

However, after following this thread I decided to check the e-mail again and to my delight there is a link to complete my application. So guess what, I have just applied to open 2 accounts one for myself and one for OH and will fund them on 6 April.

Try the link below.

please click here.

afc80

Want to invest £5100 in a cash isa. Dont need access to the money. Looking at the Fixed Rate Halifax ISA Saver which has a rate of 4.25% if kept for 4 years.

Any better deals out there?