Top Cash ISAs Discussion Area

purplestar133

rb10 wrote: »

Provided you do not pay any money into the Santander ISA, then you would not be breaching the rules by doing this.

Another poster (who I believe works for Santander) has said on this forum that you have 30 days in which to fund Santander ISAs before they automatically close, so opening now and funding after 6th April (but within 30 days of opening) would be fine.

I was hoping to do this but have just gone to apply online and it says:
You can apply if:

• You are at least 16 years of age and a UK resident
• Your opening balance will be at least £1
• You haven't paid into a cash ISA in the current Tax year

When I've got more time I'll go through the application and see if it actually allows you to submit it without putting any money in. Otherwise, I suppose we could try doing it in branch (though I doubt I can get an appointment if it's anything like last year!).

stacey_appleby27

Hey everyone,

I am new here. Last year I cleared all my debts and this year its the first time I've actually started saving. I am not brilliant with money and numbers but def learning. Heres what I have done so far

Swapped mine and my hubbys current account to santander for the 5% of the first £2500 and £100 cash back. So we both have a balance that doesnt go below £2500. I have also got an Santander ISA but only got £2000 in there which I put in last week. I got an ISA even though I don't really understand them, Martin kept saying get one before April so I did. Its with Santander and 3.25%

My question is now, do I leave the £2000 in for a year? and then in April do I have to get another ISA out to put my savings in or do I use the Santander one still? This is where I sound confusing because I am clueless about these ISAs. We will be saving £1500 a month.

Any advice would be appreciated. Idiot proof tho please ha xx

purplestar133

stacey_appleby27 wrote: »

Hey everyone,

I am new here. Last year I cleared all my debts and this year its the first time I've actually started saving. I am not brilliant with money and numbers but def learning. Heres what I have done so far

Swapped mine and my hubbys current account to santander for the 5% of the first £2500 and £100 cash back. So we both have a balance that doesnt go below £2500. I have also got an Santander ISA but only got £2000 in there which I put in last week. I got an ISA even though I don't really understand them, Martin kept saying get one before April so I did. Its with Santander and 3.25%

My question is now, do I leave the £2000 in for a year? and then in April do I have to get another ISA out to put my savings in or do I use the Santander one still? This is where I sound confusing because I am clueless about these ISAs. We will be saving £1500 a month.

Any advice would be appreciated. Idiot proof tho please ha xx

You can leave the £2000 in your Santander ISA as long as you like, if a better offer comes up, you might want to transfer it to another provider. For now though be aware that the rate you are getting will only last a year and then it'll will drop, so you should definitely consider transferring it then.

On 6th april, the new tax year starts and you can put up to £5340 into your Santander ISA if you want to or you can open a new ISA with another provider and put it in there.

Hope that helps!

stacey_appleby27

Thanks for your reply. Yeah so basically after a year move it. Cool cheers

Cuidadosa

I think I've found the answer to the question I had, but it would also be very helpful if it was made clearer on the ISA guide.

My issue is that YES, we are allowed to transfer ISAs as many times we want... But in reality: is this possible at all?
From what I see, all of them have a minimum deposit of £1, so efectively, every time you want to transfer your ISA: you have to OPEN a new ISA.

If for example I want to take advantage of the Santander's offer (which doesn't take in transfers), and start depositing money into that one next tax year (this year I've already got my maximum allowance in)... I am effectively stuck with the low rates for my old ISAs, because any transfer would mean opening a new ISA (because of the minimum £1 deposit).

In fact... What if I wanted to transfer it now? I cannot do it!
Thinking about it, if I had put into it £5099, then there would be no problem, I guess... But I could have done with knowing this!

OR: is there any ISA that takes in transfers without a minimum deposit?

blueberrypie

Cuidadosa wrote: »

My issue is that YES, we are allowed to transfer ISAs as many times we want... But in reality: is this possible at all?
From what I see, all of them have a minimum deposit of £1, so efectively, every time you want to transfer your ISA: you have to OPEN a new ISA.

For most ISAs which allow transfers in, the transfer *is* the initial deposit. In general, you simply complete and hand over the ISA transfer form at the same time you request the ISA to be opened.

stepea

I've currently got 13k in an ISA which I could probably get a better rate. From 5th April, I've got another 5k to invest leaving another 5k for the following year. Should I put the 5k with the existing ISA, I was thinking of investing this 5k in a 3 year ISA. Good idea ? As I said I'm consider moving my existing 13k ISA to a better 1 Year rate. not sure what to do with the remaining 5k for twelve months. What's my best options

varndeanian

:mad: If you're thinking of investing with the Halifax over a 3 year period be aware of their new rules! Previously they paid interest on the previous year's interest in years 2 and 3. However their maturity statements now state as follows: "Please note that payment of interest on maturity is no longer available on new accounts. Interest is now paid annually on all terms". We spoke to an adviser today who confirmed that the interest will be paid out and therefore lose ISA status. I have yet to discover whether Martin has commented on this or whether other companies are moving to this system.

An earlier poster bemoaned the complexities and I concur.

10_66

varndeanian wrote: »

:mad: If you're thinking of investing with the Halifax over a 3 year period be aware of their new rules! Previously they paid interest on the previous year's interest in years 2 and 3. However their maturity statements now state as follows: "Please note that payment of interest on maturity is no longer available on new accounts. Interest is now paid annually on all terms". We spoke to an adviser today who confirmed that the interest will be paid out and therefore lose ISA status. I have yet to discover whether Martin has commented on this or whether other companies are moving to this system.

An earlier poster bemoaned the complexities and I concur.

Are you sure? If you have a look HERE (which relates to fixed rate ISAs), it states that interest is paid annually into your ISA.

Also HERE, on page 18 under the "summary of features table", it states the same, ie "interest is paid into the account tax free".



....

rb10

varndeanian wrote: »

:mad: If you're thinking of investing with the Halifax over a 3 year period be aware of their new rules! Previously they paid interest on the previous year's interest in years 2 and 3. However their maturity statements now state as follows: "Please note that payment of interest on maturity is no longer available on new accounts. Interest is now paid annually on all terms". We spoke to an adviser today who confirmed that the interest will be paid out and therefore lose ISA status. I have yet to discover whether Martin has commented on this or whether other companies are moving to this system.

An earlier poster bemoaned the complexities and I concur.

The advisor who you spoke to is definitely wrong.