Top Cash ISAs Discussion Area

Lungboy

You are correct, it was not a new ISA that i paid into this tax year, it was last year's Barclays Golden ISA which was a year old on the 8th of this month. It was new money going into an old ISA.

Consumerist

Lungboy wrote: »

You are correct, it was not a new ISA that i paid into this tax year, it was last year's Barclays Golden ISA which was a year old on the 8th of this month. It was new money going into an old ISA.

Ok. So you should be able to pay in the remainder of this year's ISA allowance.

The ISA account page should tell you how much of your allowance is still available for you to pay in. If so, you could check their figure against what you know is remaining.

Lungboy

I can't access any of those details yet as i only opened the account over the phone this afternoon.

George_Mainwaring

I was looking around high street bank interest rates for fixed-term ISAs and normal savings accounts, and wonder why they differ?

For example, the Halifax currently offer 4.5% for a 5-year ISA but only 4.15 for a non-ISA. Surely, it's the exact same account to them, it's just that tax isn't payable on the ISA version, so why offer a lower rate for the taxable account?

Also, are savings interest rate fluctuations seasonal to help push customers toward certain products at certain times of the year (such as making ISAs more attractive at the start of each tax year)? I ask because I've noticed the interest rates for fixed term accounts get lower since the beginning of the year. I think the Yorkshire Bank were advertising a 5.2% 5-year account but that's now gone. The Halifax were also offering 4.5% for 5 years, which dropped in March to 4.25% and today it just dropped again to 4.15%.

Are these likely to go back up later in the year, or are they in a steady decline for other economic reasons?

Consumerist

George_Mainwaring wrote: »

I was looking around high street bank interest rates for fixed-term ISAs and normal savings accounts, and wonder why they differ? For example, the Halifax currently offer 4.5% for a 5-year ISA but only 4.15 for a non-ISA. Surely, it's the exact same account to them, it's just that tax isn't payable on the ISA version, so why offer a lower rate for the taxable account?

The banks exposure is limited with ISAs compared to standard savings accounts. And higher rates tend to be available only for short periods - normally until a target quota has been fulfilled.

Are these likely to go back up later in the year, or are they in a steady decline for other economic reasons?

Unfortunately, non of us have crystal balls so we do the best we can with the rates available at the time. We can sometimes make informed guesses, for example, ISA rates tend to rise a little at the start of the ISA season but otherwise we are at the mercy of the financial institutions.

Your "quick" question would need volumes of banking and world economic theory to answer - if, indeed, there is a meaningful answer.

Consumerist

Lungboy wrote: »

I can't access any of those details yet as i only opened the account over the phone this afternoon.

Don't forget that the amount transferred in the ISA will include interest from Barclays up to the transfer date. This interest is NOT part of your 2012/13 ISA allowance - only count money you have paid into the ISA yourself, from 6 April, when you work out how much of the allowance remains for the current year.

Lungboy

Consumerist wrote: »

Don't forget that the amount transferred in the ISA will include interest from Barclays up to the transfer date. This interest is NOT part of your 2012/13 ISA allowance - only count money you have paid into the ISA yourself, from 6 April, when you work out how much of the allowance remains for the current year.

I've just got off the phone to Santander and the lady was adamant that as i've paid into my ISA with Barclays then i won't be able to pay into it again once I transfer it to Santander. She kept reciting the mantra that I can only pay into one ISA per year. I also found out that even if i was able to pay money in, the ISA will only accept new money until a certain date in May, which is useless for me. Looks like i'll be leaving my money where it is.

badger09

Lungboy wrote: »

I've just got off the phone to Santander and the lady was adamant that as i've paid into my ISA with Barclays then i won't be able to pay into it again once I transfer it to Santander. She kept reciting the mantra that I can only pay into one ISA per year. I also found out that even if i was able to pay money in, the ISA will only accept new money until a certain date in May, which is useless for me. Looks like i'll be leaving my money where it is.

Apologies if you've stated this already, but I've only read back a couple of pages

Exactly how much have you paid into your Barclays ISA since 6th April 2012?

If you've already paid in £5640, then you won't be able to pay in any more, whether you leave it where it is or transfer to Santander Direct ISA.

If you've paid in less than £5640, you will be able to add to it, up to £5640, again, whether you leave it at Barclays or transfer it to Santander Direct ISA or anywhere else!

Consumerist

Lungboy wrote: »

I've just got off the phone to Santander and the lady was adamant that as i've paid into my ISA with Barclays then i won't be able to pay into it again once I transfer it to Santander. She kept reciting the mantra that I can only pay into one ISA per year. I also found out that even if i was able to pay money in, the ISA will only accept new money until a certain date in May, which is useless for me. Looks like i'll be leaving my money where it is.

It is disappointing that customer service centres don't really understand ISAs. What you have been told is correct as far as it goes - you can only pay into one ISA in a tax year but what they have failed to recognise is that the ISA, once transferred, is still the same ISA and that you can continue to pay in to it throughout this tax year until you reach this year's limit in total. You can transfer the ISA again and again but it is still the same ISA.

Edit
I think you have also been misinformed regarding the May deadline for deposits; this sort of restriction normally only applies to fixed ISAs but yours is a variable and I see no such restriction in the pdf document or online.

If you still want to go ahead with Santander then continue to deposit up to the ISA limit. I doubt if the subscription will be refused. You can always transfer again.

This, regrettably, is Santander at its usual standard and is why they have have to offer good rates to get customers.

Edit2
From the pdf document, as posted before :-

Deposits are allowed at any time via standing order, one-off payments or internet transfer.

That doesn't say anything about being until May.

Lungboy

The conversation went roughly:
"You can only pay into one ISA sir"
"I know, but from what I understand it is the same ISA, just with you managing it instead of Barclays."
"You can only pay into one ISA sir"
etc.

I'm more surprised to be told that payments into the ISA aren't allowed after some date in May, when the t&c pdf that Consumerist linked states that deposits can be made at any time, and makes no mention of a deadline, as even with the CS lady being incorrect, i wouldn't be able too pay in any more money anyway.