Top Cash ISAs Discussion Area

Crabman

aggro wrote: »

Hi
My barclays tax beater cash ISA will be 1 year old on the 9th April 08 and it will lose it's 1% bonus, barclays advised me to open a new tax Heaven ISA and put 08/09 allowance into it, however they said to leave my old ISA alone. I understand that i could not pay into that account as i intend to pay the maximum allowed into the new ISA but would my (old ISA) tax beater ISA still be tax free? do you get tax free savings on all ISA's that you have as long as you only pay 3K into only 1 of them? thanks in advance.

Hi, welcome to MSE

Once money is placed into an ISA account, it remains tax-free until you withdraw it. You can place £3000 into an ISA account each year however, from 6th April 2008 the annual cash allowance increases to £3600.

You could transfer last year's "Tax Beater Cash ISA" over to a provider offering a better interest rate - e.g. A&L at 6.25% or Icesave at 6.1% - details in the Cash ISA Transfer Article.

shedman_2

Do I have to ASK Alliance and Leicester to "move" my existing ISAs (Issues 2 and 3 ) to Issue 4 or will they do iy automatically?
2 and 3 are only paying 5 an5.4% respectively.

Regards
Paul

10_66

You will have to ask them to transfer your previous ISA's into a new ISA. ISA providers won't transfer automatically as they rely on prople opening ISA's and then leaving them to earn not very competitive rates after the first year. You may have to complete the new application form and transfer forms, I'm don't know though, as I haven't got any ISA's with A&L.

King_Weasel

in4quids wrote: »

Only heard of ISAs on the Sunday show (new to the country). If we're careful, my partner and I might manage to have 1k by 5 April. I gather that the rules are we can each invest 3k per annum, rising to 3.6k in the new financial year, in an ISA and pay no tax on the interest. We can't have a joint ISA account.

I think that's all correct?

If we take money out during the year, we can't put it back. So, is this right? if we start the year with 1k in the account, and put in 2.5k, then take out 1k, we can only put in another 1.1k before we start paying tax.

If that's right, are we better opening an account each now with 500 in each, and putting money in each account up to the limit, or putting the whole 1k in a single account now and only open the 2nd account when we reach the limit on the first? (we see the money as ours, even though the rules don't seem to allow for that).

Or would we be better putting some money into a managed fund? and can you do that through a maxi ISA (which I don't fully understand yet). Sorry, lots of questions all all once.

First, are you talking about saving in a cash ISA or investing in bonds/shares etc? Sounds like the latter, in which case we are talking maxi-ISAs with allowances of £7K each this year and £7.2K next. ISAs are just the wrapper for funds or directly-owned shares, so that choice is another you need to make. Managed funds and ISAs are not alternatives.

Or you can do both cash and shares etc with mini-ISAs.

The other point you need to understand is that each year's - as well as each person's - ISA is separate. You can't top up this year's allowance next year. So you should put as much away before the deadline as possible to make the most of your allowances.

If you might need the money soon then you should stick to cash.

Hope this helps.

bryanwood44

if you already have an Isa froma previous Tax year, can you transfer it for a better interest rate ISA this year?

10_66

As long as the new ISA provider accepts transfers in (not all do), you can transfer your previous years' and or this year's to another provider.

pokey

Why is Lloyds TSB cash ISA not listed in the best buy article I understand it pays 6.5% on balances of 9K + and allows transfers from other ISA's

Sounds like a good deal or am I missing something ?

Best Regards.

Pokey.

Wsb5tails

I'm off to open one today so I hope I'm doing right and not missing a better deal too

sannesley

I have a question:- Which is better??? An ISA account with with an interest rate of 5.50% paid monthly as paid by Natwest or an intererest rate of 6.20% paid yearly by the Halifax?

bristolleedsfan

sannesley wrote: »

I have a question:- Which is better??? An ISA account with with an interest rate of 5.50% paid monthly as paid by Natwest or an intererest rate of 6.20% paid yearly by the Halifax?

U are asking about two different products, Halifax 6.20% rate is higher than 5.50% paid monthly because its a 4 year term.