Top Cash ISAs Discussion Area

Lokolo

black_taxi wrote: »

if your funds are in a 1 year fixed term cash isa-building society--end of year the new rate is same or better

if you want to put full allowance in for next year---does the total fund get new rate

sorry if its a stupid question---im a beginner

Fixed term accounts usually don't allow additional deposits. So you won't be able to add to that account.

From the new tax year you are free to open up an ISA elsewhere and use your allowance there. So you will have 2 ISAs each earning (potentially) different interest rates.

black_taxi_2

if that building society has new fixed saving isa account---you ask funds from old account to be transfered into it

if its regular saving isa account--is new rate automaticaly adjusted?

thx

Lokolo

black_taxi wrote: »

if that building society has new fixed saving isa account---you ask funds from old account to be transfered into it

You can do, but there will be a penalty for doing so as you will be ending the original account early. The only way not to incur the penalty would be to wait for the original fixed term to end, it will then revert to an instant access ISA (usually). When this happens you can transfer new funds into it. Then convert it to another fixed term.

black_taxi wrote: »

if its regular saving isa account--is new rate automaticaly adjusted? thx

When a regular saver ends, it will revert to an instant access ISA as well.

black_taxi_2

eg.april 2012/2013--say 2.75%

1 year fixed term---full cash isa allowance £5640+2.75%

£5640+£155.10

march-2013-£5795.10(moved to instant access)

add 2013/14 full allowance to instant access isa

£5795.10+£5640e.g.===£11435.10 in instant access isa

look for fixed 1 term isa again 2013/14


is this right?----no wonder people get caught out

Lokolo

black_taxi wrote: »

eg.april 2012/2013--say 2.75%

1 year fixed term---full cash isa allowance £5640+2.75%

£5640+£155.10

march-2013-£5795.10(moved to instant access)

add 2013/14 full allowance to instant access isa

£5795.10+£5640e.g.===£11435.10 in instant access isa

look for fixed 1 term isa again 2013/14


is this right?----no wonder people get caught out

Yes that's right, apart from it will be April 2013, not March 2013.

The tax year starts on 6th April. So to use your 12/13 allowance you would need to wait until then, which means the fixed rate does not mature until April 5th. Which you can then top up April 6th, the lock in 13/14.

black_taxi_2

april 2013 ---you wait till interest is paid

then put new full allowance into 2013/14 instant cash isa

then look for a fixed term 2013/14

dragilex

I currently have a Natwest e-ISA that pays 2% and from my understanding it will stay at this rate for the future. I want to know if I transfer the amount in this account to the Principality BS e-ISA that pays 2.8% for the remainder of this tax year will I get the interest from now until their interest anniversary on 6th April? And would I then look at what next years crop of ISA's are like and transfer again post April 6th once I've got the interest?

And when is the best time to do the ISA hunting and transferring? Would I be better off waiting until March or April to transfer to a new ISA (if yearly allowance is not an issue in this particular situation)?

purplestar133

dragilex wrote: »

I currently have a Natwest e-ISA that pays 2% and from my understanding it will stay at this rate for the future. I want to know if I transfer the amount in this account to the Principality BS e-ISA that pays 2.8% for the remainder of this tax year will I get the interest from now until their interest anniversary on 6th April? And would I then look at what next years crop of ISA's are like and transfer again post April 6th once I've got the interest?

And when is the best time to do the ISA hunting and transferring? Would I be better off waiting until March or April to transfer to a new ISA (if yearly allowance is not an issue in this particular situation)?

As long as you can transfer out without penalty then you will receive interest up until the date you transfer out, whether this is before or after April 6th. You don't have to wait until April 6th to transfer and get your interest (unless the account terms and conditions stipulate this).

You would be better off transferring now to a better paying account. New headline rates will come out closer to the end of the tax year/beginning of next tax year, but you can transfer then again if you wish. There is no point waiting in a low paying account until then. Also, a transfer at this time of year should not take as long to go through as it would at the end of the tax year when lots of people are doing it due to the headline rates coming out.

jahalamo

Hi I don't entirely understand ISA's,
Sorry if this has been covered a hundred times but everytime i read the ISA page i get confused, i just want to put my money somewhere good..

I have £600 and want to save £100 a month for at least 4 years. Its kind of late to open an ISA so what happens to my money in April? Will i have to move it or can i keep on putting the money into the same one, and should i be looking at which ISA?

Any help would be appreciated, Thanks

10_66

jahalamo wrote: »

...I have £600 and want to save £100 a month for at least 4 years. Its kind of late to open an ISA so what happens to my money in April? Will i have to move it or can i keep on putting the money into the same one, and should i be looking at which ISA?...

The problem with ISA's is that if you open a variable rate ISA (where the terms and conditions are usually instant access and to which you can usually add more money, but not always), the rate tends to drop after the first 12 months (because the ISA provider hopes that you'll be either too lazy to move it or just forget to), so we all have to do the ISA dance and transfer our ISA's to another provider, and so the whole process starts again for another 12 months'. So if you opened a variable rate ISA now, and wanted to add to it for 4 years', you would probably need to keep moving it every year to ensure you're getting the best interest rate you can.

If you open a fixed rate ISA for say 2, 3 or maybe 4 years', then this removes the ISA dance for that period of time, but, you say you want to be able to add £100 on a monthly basis, and usually you can't add to a fixed rate ISA once the initial funding had been paid/transferred in. You might find Regular Saver ISA's but Kazza doesn't have any listed on her "best buy" list, which might mean there aren't any worth having. Have a look at Kazza's LINK HERE, it will gives you a list of the best ISAs out there.