Top Cash ISAs Discussion Area

revnev

A quick PS..

it seems it's just me being thick! If you click on the "full details" arrow by the BM link on Martin's recommendations page - it DOES say that online applications close on 1st April... 'tis me being an April fool!

ejv

revnev wrote: »

ahh - is that the case for all of them then? if so - then the countdown to the deadline clock is a bit redundant!!

Nope...
Santander closed their online and phone-in requests on 2nd April,but accept in-bank requests till 5th April bank closing time-You can still get the 3.3% Easy access, No penalty ISA for 2011-2012 FY:)

Consumerist

Be aware that the "Interest earned" table below the savings calculator does not include annual compounding.

For example, the value of £5,640 of untaxed savings in a top ISA (3.5%) is £613 after 3 years - not £592 as stated in the table.

Edit
This can be verified by using the savings calculator above the table.

Update 10/04/2012
The table has now been corrected.

sly_dog_jonah

Consumerist wrote: »

Be aware that the "Interest earned" table below the savings calculator does not include annual compounding.

For example, the value of £5,640 of untaxed savings in a top ISA (3.5%) is £613 after 3 years - not £592 as stated in the table.

Edit
This can be verified by using the savings calculator above the table

I spotted this yesterday at about the same time. I tweeted MSE Dan, I guess it will get fixed on Tuesday when MSE Towers is back from a well-deserved Easter break.

jahalamo

May be a stupid question...........

If you reach the ISA limit £5640 what happens to your ISA?
Do you just leave it and it carries on earning interest until you eventually withdraw it all?

Also if you were to transfer it in April 2013 would that be your next years ISA used up?

Scarpacci

jahalamo wrote: »

May be a stupid question...........

If you reach the ISA limit £5640 what happens to your ISA?
Do you just leave it and it carries on earning interest until you eventually withdraw it all?

Nothing happens to it, you just can't add any more money until the next tax year comes but it will continue earning interest. Yes, ideally you would leave it for as long as is possible and then try fill another ISA in the next tax year.

Many people have ISAs filled with contributions from a decade or so ago, if not longer. If you make sure to transfer it whenever the rate drops, you can keep earning a half decent rate of interest on it.

jahalamo wrote: »

Also if you were to transfer it in April 2013 would that be your next years ISA used up?

No, if you use the correct transfer process (ie. you do not withdraw the money yourself and add it to a new isa, but you use the transfer forms provided) then any previous years' transfers do not count as your ISA subscription in a new tax year.

The real benefit of ISAs is their ability to build up like that. If you put money into an ISA, it will retain its tax-free status so long as you keep it in the ISA wrapper. So even though the limit is £5,640, you can have a lot more in the ISAs if you fill them up every year.

jahalamo

Scarpacci wrote: »

Nothing happens to it, you just can't add any more money until the next tax year comes but it will continue earning interest. Yes, ideally you would leave it for as long as is possible and then try fill another ISA in the next tax year.

Many people have ISAs filled with contributions from a decade or so ago, if not longer. If you make sure to transfer it whenever the rate drops, you can keep earning a half decent rate of interest on it.


No, if you use the correct transfer process (ie. you do not withdraw the money yourself and add it to a new isa, but you use the transfer forms provided) then any previous years' transfers do not count as your ISA subscription in a new tax year.

The real benefit of ISAs is their ability to build up like that. If you put money into an ISA, it will retain its tax-free status so long as you keep it in the ISA wrapper. So even though the limit is £5,640, you can have a lot more in the ISAs if you fill them up every year.

It has taken me a while but i finally think i fully understand the process now! Thank you for your help
Its like a light bulb just went on in my head and now it all seems to make sense.. at last!

ejv

Scarpacci wrote: »

The real benefit of ISAs is their ability to build up like that. If you put money into an ISA, it will retain its tax-free status so long as you keep it in the ISA wrapper. So even though the limit is £5,640, you can have a lot more in the ISAs if you fill them up every year.

Just curious....do these "old" ISAs and their respective interests have any sort of "tag" on them so that HMRC knows which is old and which is new money?

I mix,split &transfer the old ones and ,at present do not have any clue where have I parked the amount I originally invested few years ago:huh:

10_66

ejv wrote: »

Just curious....do these "old" ISAs and their respective interests have any sort of "tag" on them so that HMRC knows which is old and which is new money?

I mix,split &transfer the old ones and ,at present do not have any clue where have I parked the amount I originally invested few years ago:huh:

I don't think so. It's the reason that they insist on the current year's ISA being all in one place, so that you can't exceed your subscription allowance. After that, it doesn't matter where they're "kept".

sly_dog_jonah

The ISA rules only allow you to 'subscribe' (deposit new money) to one cash ISA per year, but you can open as many you like to transfer existing ISAs (even the current tax year's). The only restriction when transferring this year's ISA is that you must transfer the whole amount you've subscribed this year. Past years ISA can be split up however you like.

Using this method you can split your cash between long or short term fixes for better rates, and keep some in instant access (I tend to keep the current subscription instant access). The highest interest instant access accounts generally don't allow transfers in so can only be used for new money.

The majority of my ISAs are in a 5% 5yr fix (30day penalty free access) and recent subscriptions are at 3.1% instant access.