Top Cash ISAs Discussion Area

Consumerist

cloudchaser wrote: »

Am I right in thinking that any amount I put in a Cash ISA (say £10,000) will be eligible to receive the tax free interest?

Yes but you can only put up to £5,640 into a cash ISA this year (not £10,000).

And that £5640 is the maximum amount I can add to the Cash ISA in the current tax year?

Yes. Next year you will get a new allowance to start another ISA or add to this year's.

What amount will I be getting the tax free interest on? Just the topped up £5640 or the entire amount of £15640?

You can't put in more than £5.640 this tax year but you will get tax-free interest on all amounts in ISAs. Over the years you can have many ISAs but only one per year can be paid into.

Tobbins

A quick, and hopefully not too stupid question...
I am comparing ISAs for this years allowance, and am also looking to transfer my previous ISAs to the same place, looking at Santander as an example, would I be better of with a fix term of 3.5 AER for 1 yr, or use their instant access 3.3 AER but also have their bonus of 2.8 for the 12 months? Does the bonus apply to just this years allowance or the entire amount transferred in?

Consumerist

Tobbins wrote: »

I am comparing ISAs for this years allowance, and am also looking to transfer my previous ISAs to the same place, looking at Santander as an example, would I be better of with a fix term of 3.5 AER for 1 yr, or use their instant access 3.3 AER but also have their bonus of 2.8 for the 12 months? Does the bonus apply to just this years allowance or the entire amount transferred in?

Hi Tobbins and welcome to the forum.

The bonus is included in the quoted AER. So the underlying rate for the variable account is 0.5% which is what the interest rate will drop to when the 2.8% bonus expires.

The bonus applies to the entire balance.

Which of the two accounts is better for you depends on whether you intend to deposit the full £5,640 in one lump or in smaller deposits throughout the year and also on whether you might need access to the money during the year.

The variable ISA (3.3% AER) will allow deposits and penalty-free withdrawals throughout the year whereas the fixed-term (3.5% AER) will not.

Tobbins

Consumerist wrote: »

Hi Tobbins and welcome to the forum.

Which of the two accounts is better for you depends on whether you intend to deposit the full £5,640 in one lump or in smaller deposits throughout the year and also on whether you might need access to the money during the year.

The variable ISA (3.3% AER) will allow deposits and penalty-free withdrawals throughout the year whereas the fixed-term (3.5% AER) will not.

Thanks Consumerist! I would be making smaller deposits, but no withdrawals. So presumably the variable rate is the way to go?

Thanks again

Consumerist

Tobbins wrote: »

Thanks Consumerist! I would be making smaller deposits, but no withdrawals. So presumably the variable rate is the way to go?

Fixed-rate accounts normally allow just an opening deposit (or a period within which deposits must be made) so, to make deposits throughout the year, the variable account is the way to go.

cloudchaser

Consumerist - thanks for the clarifications - helped me understand ISAs better.

Consumerist wrote: »

Yes but you can only put up to £5,640 into a cash ISA this year (not £10,000).
Yes. Next year you will get a new allowance to start another ISA or add to this year's.
You can't put in more than £5.640 this tax year but you will get tax-free interest on all amounts in ISAs. Over the years you can have many ISAs but only one per year can be paid into.

emmap1985

Hi I would like to ask if I open a 3 year fixed ISA this year April 2012 to April 2013. Whether I will be able to open up another ISA Next April 2013 as 1 year fixed or whether I would have to stick with the three year fixed up until 2015. Any help is appreciated. Thank you in advanced.

10_66

emmap1985 wrote: »

Hi I would like to ask if I open a 3 year fixed ISA this year April 2012 to April 2013. Whether I will be able to open up another ISA Next April 2013 as 1 year fixed or whether I would have to stick with the three year fixed up until 2015. Any help is appreciated. Thank you in advanced.

Yes, you can open another one next financial year for that year's subscription. It's unlikely that you could add to the one you've already opened, as you usually can't add to fixed rates once opened or if they've been withdrawn.

Beate

Just wondering why I can't find the LLoyds TSB 2 year 3.7% fixed rate ISA (allowing transfers) in the list of Top Cash ISAs. Ok, you have to have a balance of £10,000 or more to reach this rate (it's 3.4% otherwise) but where this applies, it seems to be better than the Halifax 3.7% one as you can add money throughout the year up to the ISA limit and also have access to your money (subject to a penalty in interest of course). You can also manage it online which I also find a bonus and upon reverting back to a Cash Isa Saver, it will pay 1% instead of the 0.5% that Halifax offer.
I am seriously considering this one unless someone tells me that Lloyds TSB have poor customer service?

innovate

Beate wrote: »

Just wondering why I can't find the LLoyds TSB 2 year 3.7% fixed rate ISA (allowing transfers) in the list of Top Cash ISAs.

It is in Kazza's list.

Nothing wrong with Lloyds and this ISA - I had one of these for a couple of years. Easy to manage online.

You might have to endure calls from them, or get asked to drop into a Branch. Sole purpose is for them to flog you something you are unlikely to want, and they give up pretty swiftly if you say you aren't interested.