Top Cash ISAs Discussion Area

aprensivo

Hi all,
I have got a question - I have a £3,5k plus I can easily pay £600/month into a savings account/ISA. Me and my fianc!e are saving up to have as big a deposit for a home as possible. She's got much more savings than me, 2 maxed ISAs, a fix-rate bond + some money on a savings account.

I would like to put the money somewhere else than my HSBC savings account, interest from which are pitiful after tax. Thing is, we're looking at getting a mortgage in March/April, so I will have to withdraw all the money before the 12 month period.

I am looking for an ISA that would:
- have the interest paid out monthly (so that I can have the most after, say, 7 months)
- have no limit on withdrawals (I want to make only one though, mentioned above)
- either doesn't have a penalty for withdrawing all the funds or allows to maintain the balance of low amount, say £100

Is there anything like that available? I understand that even if such thing exist, it won't be the best ISA existing... But honestly, anything above 1,5% would be great - because using Moneyexpert Savings Calculator says that with 3,5k initial deposit + 600 monthly payments, after 7 months I would have earned a whooping £86.75 after basic tax...

Many thanks in advance for any advice...!
Thomas

DragonQ

You don't need interest paid monthly. If you close the account after 7 months you still get all of the interest you're due even if it's normally paid yearly.

A fixed account is no good to you since you need the money in less than a year, so go for the best instant-access ISA available (probably still Northern Rock at 3.05% but check the main MSE website). Make sure you don't go over the £5430 limit for this tax year though - if you reach this and want to save more, you'll need to open a normal (non-ISA) savings account too.

victor62

Just to let people know as doesn't seem to be mentioned (as yet)that Nat West of all people are doing a 2yr Fixed ISA @3.7% and a 3 yr @ 4.0%,min deposit £1000, transfers accepted .Deadline coming up in Nov or sooner if demand rockets! Competitive rates with 3 yr paying optional monthly interest (NATWEST Acc rqd) but beware deadline for applications/transfer requests 1st Nov-(additional 11/12 allowance - 29th Nov), 6th Dec though is when you start earning at the higher rate, meaning your money gets the normal cash Isa rate (prob 0.5% or less) for the interim period. Transfers not allowed from existing Nat West / RBS Cash Isas! - Something to think about!

INSPIRED

I have an ISA that I need to move on 30th November before the interest rate plummets. Can someone remind me how long the whole process takes from applying to a new provider and the transfer taking place?

Is it worth applying for the new ISA now or waiting until closer to the date?

Many thanks.

Lokolo

INSPIRED wrote: »

I have an ISA that I need to move on 30th November before the interest rate plummets. Can someone remind me how long the whole process takes from applying to a new provider and the transfer taking place?

Is it worth applying for the new ISA now or waiting until closer to the date?

Many thanks.

You can usually request a specific date of transfer. So you can start one now, and just put 30th November as the transfer date.

INSPIRED

Lokolo wrote: »

You can usually request a specific date of transfer. So you can start one now, and just put 30th November as the transfer date.

Thank you for the swift reply and answer.

buckster

I have an isa which I opened in october last year and the rate has gone down to a 0.5% interest rate. I am going to open another isa and transfer the money over but I haven't received any interest yet. Does anyone know when I'm likely to have that added and would the interest count towards funds added for that tax year?

10_66

buckster wrote: »

I have an isa which I opened in october last year and the rate has gone down to a 0.5% interest rate. I am going to open another isa and transfer the money over but I haven't received any interest yet. Does anyone know when I'm likely to have that added and would the interest count towards funds added for that tax year?

It depends on the terms & conditions of the ISA, but usually, if it's not a fixed rate ISA, you would receive interest on the closure of your ISA when it's transferred to the new provider. However, it's best to check the T&Cs to make sure.

Any interest added does not count towards the amount that you're allowed to subscribe.

LnM_2

In early April I opened a then best buy ISA and paid in the max allowed. This ISA does not permit transfers in of old ISA money. I have older ISAs with different suppliers which now offer very little interest. Now of course other new ISAs have come along with good interest which do allow transfers in.
My question is:- Is it possible or legal to open a 2nd ISA in this tax year purely to tranfer old ISA money into? IE. No new savings, just transfers in?
Also, If I had invested less than the max in this tax year would that have made a difference?
I cannot find either situation covered in the ISA rules as published.
Any advice will be welcomed.
Thanks.

Lokolo

LnM wrote: »

In early April I opened a then best buy ISA and paid in the max allowed. This ISA does not permit transfers in of old ISA money. I have older ISAs with different suppliers which now offer very little interest. Now of course other new ISAs have come along with good interest which do allow transfers in.
My question is:- Is it possible or legal to open a 2nd ISA in this tax year purely to tranfer old ISA money into? IE. No new savings, just transfers in?
Also, If I had invested less than the max in this tax year would that have made a difference?
I cannot find either situation covered in the ISA rules as published.
Any advice will be welcomed.
Thanks.

There is nothing wrong with opening multiple ISAs in one tax year. What you are not allowed to do, is contribute - which is to put new money, into more than 1 ISA each tax year.

As you are tranferring (by an ISA transfer form with the new provider!) old money, this is fine to open a new ISA for it. You just can't deposit any new money.

- Open up new ISA which allows transfers in, with £0 balance
- Fill in ISA transfer form with new provider
- The banks do the transfer
- Few weeks (we all hope ) the transfer goes through and your new ISA has old ISA balance + interest due.