Top Cash ISAs Discussion Area

meher

On the articles page, Martin says AA 3.35% AER Top variable but doesn't track. So sorry if this sounds stupid, but please help me understand what does it doesn't track mean?

blueberrypie

meher wrote: »

On the articles page, Martin says AA 3.35% AER Top variable but doesn't track. So sorry if this sounds stupid, but please help me understand what does it doesn't track mean?

It means the interest rate isn't guaranteed to follow anything else.

Some ISAs have an interest rate that tracks the Bank of England base-rate, or one of the measures of inflation. Others have a fixed rate - you put in your money, you're signed up for a guaranteed return of a certain rate after a certain time. Others have variable rates - these rates can change whenever the ISA provider feels like it. That sounds like quite a risk, but in general you'll get that rate for the first year, unless there are major changes in the financial markets, and of course you are free to transfer your ISA elsewhere at any time.

So "it doesn't track" simply means it's a variable rate.

Cuidadosa

I've seen some people with the same problem as I have, and the answers they got looked good... On paper. But in practice... How do I go on about doing this??

I've got the full 2010/2011 allowance (+ interest!!) in a Santander ISA with interestrate about to drop dramatically. I want to transfer it to my Natwest ISA which IN THEORY accepts transfers in. Since I didn't contribute to this ISA in 2010/2011, I need to re-activate it. In order to do this I have to fill in a reactivation form (on-line) and then fill in an ISA transfer form that I have to take to the bank.

Now, when filling in this reactivation form, one of the steps is the following set of questions:

---

How much would you like to deposit into your ISA (£)?*
(minimum £1, maximum £5,100)

Please also write the amount you wish to invest in words*

How would you like to make a deposit?*
-Transfer from my NWB account
-Post in a cheque

Account number of NWB account from which funds are to be transferred
[This information is required if 'Transfer from my NWB account' chosen for How would you like to make a deposit?]

Sortcode of NWB account from which funds are to be transferred
[This information is required if 'Transfer from my NWB account' chosen for How would you like to make a deposit?]

In which tax year would you like to start subscribing to this Cash ISA?*
(tax year runs from 6 April one year to 5 April the following)

---

Can someone explain to me how I fill in this section? I'm not going to make any money transfer from a Natwest account or cheque, the amount I'll transfer will be greater than 5100 (interest), from my Santander ISA.
It looks as if in order to re-activate it, I need to fund it!:(

Lokolo

http://www.natwest.com/personal/savings/g2/isas/cash-isa/transfer.ashx

Have you tried doing it this way?

Cuidadosa

I'll give it a try, thanks!

But I imagine I'm going to be told that my ISA is inactive and needs re-activation. They haven't asked me any details about my current Natwest ISA, so the process doesn't check that it's inactive....

jicms

I have a Santander Flexible cash ISA 3.5%, the bonus has just ended.

I therefore want to transfer this elsewhere, as Santander won't let me transfer in, and want to put my new allowance in a new Santander Flexible ISA (issue 3).

Also is it possible to open the account now, e.g. with a £1, in readiness for adding the new allowance in April?

Lokolo_2

jicms wrote: »

I have a Santander Flexible cash ISA 3.5%, the bonus has just ended.

I therefore want to transfer this elsewhere, as Santander won't let me transfer in, and want to put my new allowance in a new Santander Flexible ISA (issue 3).

Also is it possible to open the account now, e.g. with a £1, in readiness for adding the new allowance in April?

Have you considered Halifax to transfer your existing ISA to? They offer 3% instant access and allow transfers in.

With regards to Santander, I take it that you have already contributed to an ISA this tax year? If so, then you must NOT contribute to another Cash ISA until April 6th as this would contravene ISA regulations.

What you can do though is to open the Santander ISA now, but NOT make a deposit until the new tax year, several people on this forum have said that this works :j

jicms

I wasn't sure whether the odd pound would make a difference! I'll just try opening a Santander account without a deposit. Interest's 3.3% so beats Halifax.

Lokolo_2

jicms wrote: »

I wasn't sure whether the odd pound would make a difference! I'll just try opening a Santander account without a deposit. Interest's 3.3% so beats Halifax.

Yep it sure does :beer:

The ISA rules are very strict unfortunately, even if you put a penny into another ISA this tax year then you will be in trouble if you've already contributed to another Cash ISA this tax year.

Cuidadosa

Lokolo_2 wrote: »

What you can do though is to open the Santander ISA now, but NOT make a deposit until the new tax year, several people on this forum have said that this works :j

I'm still not sure that you can open any new ISA without funding it... From what I see, all of them require a minimum £1 deposit which I guess is part of the opening process...

Can anyone confirm for sure that they've been able to open the Santander ISA without funding it?