Top Cash ISAs Discussion Area

aab203

Hi there,

I currently have a single ISA account with Santander (direct ISA issue 9 I believe). The good interest rate I have on the account will come to an end shortly.

I am interested in opening a new ISA with Coventry BS for 2.8%, but I am not able to transfer in the money I have with the Santander account.

Can I;
- create a new ISA with Cheshire for 2.5%, transfer in everything from the Santander account and then not touch the account for a year
- also create a new ISA account with Coventry and immediately add in the full 2013/14 allowance amount and then leave this account to rest for a year?

Many thanks in advance.

Alex92_2

aab203 wrote: »

Hi there,

I currently have a single ISA account with Santander (direct ISA issue 9 I believe). The good interest rate I have on the account will come to an end shortly.

I am interested in opening a new ISA with Coventry BS for 2.8%, but I am not able to transfer in the money I have with the Santander account.

Can I;
- create a new ISA with Cheshire for 2.5%, transfer in everything from the Santander account and then not touch the account for a year
- also create a new ISA account with Coventry and immediately add in the full 2013/14 allowance amount and then leave this account to rest for a year?

Many thanks in advance.

No you cant. If you have used your max isa limit for this year you cant add anymore. You could cancel your Santander account now, then open one up with coventry in April 5th onwards, but then you will only have 5760 quid in your ISA pot.

I think the highest ISA that allows transfers in and doesnt require a stupid 30-40k ISA pot transfer is 2.10% from HSBC on balances over £10,000 or Natwest which I believe is 2.25%?

aab203

Alex92 wrote: »

No you cant. If you have used your max isa limit for this year you cant add anymore. You could cancel your Santander account now, then open one up with coventry in April 5th onwards, but then you will only have 5760 quid in your ISA pot.

I think the highest ISA that allows transfers in and doesnt require a stupid 30-40k ISA pot transfer is 2.10% from HSBC on balances over £10,000 or Natwest which I believe is 2.25%?

Thanks for your response. I wasn't being clear, so apologies - but I was referring to the new 2013/14 tax year.

So my plan is to stick with Santander until April 5th and then look to do what I originally posted, if this is allowed. So the ~£5k that i'd put into Coventry would be for the 2013/14 year, if that makes sense?

Is this still allowed?

Thanks again.

innovate

aab203 wrote: »

Is this still allowed?

Yes it is. You are free to open a new cash ISA each financial year, and deposit up to your then valid ISA allowance into it. The fact that you may have one or more cash ISAs from previous financial years is neither here nor there

graham1_2

WizardOfAuz wrote: »

Hi there,

I just wanted to clarify something which I could never get my head around. So just to clarify you are allowed to have up to £3000 in a mini cash ISA per year. I currently have the maximum amount with ING Direct which has a high interest rate for 6 months which will bring me into the new financial year.

My question is; when you transfer your money - you are not closing your account and thus can transfer from bank to bank throughout the year (presuming no fees) without affecting your yearly limit and ensuring you are getting the best return?

Hope that makes sense!?


Many thanks,

Dave

Please excuse my ignorance but I am new to ISA's. My understanding is that the Isa allowance is now £5640 pa. What is a Mini Cash Isa and is there any advantage in advantage investing in one compared to investing in a normal ISA?
Please excuse my dopyness - is there such a word? - but I have read the ISA rules and asked, online, "What is a Mini Cash ISA" and not received a clear answer.
I am blushing!:(

Graham.

innovate

"Mini cash" ISAs used to exist in the early days of ISAs. It's just cash ISAs these days, and S&S ISAs.

Consumerist

graham1 wrote: »

Please excuse my ignorance but I am new to ISA's. My understanding is that the Isa allowance is now £5640 pa. What is a Mini Cash Isa and is there any advantage in advantage investing in one compared to investing in a normal ISA?
Please excuse my dopyness - is there such a word? - but I have read the ISA rules and asked, online, "What is a Mini Cash ISA" and not received a clear answer.
I am blushing!:(

Graham.

The mini ISA is an obsolete term that used to apply to what is now known simply as a cash ISA as opposed to the Stocks-and-Shares ISA which used to be known as a maxi ISA.

Edit
More <here>.

A mini ISA used to be either for cash or for stocks & shares and a maxi was an ISA for both cash and stocks & shares. So my answer above wasn't entirely correct.

Genny_2

aab203 wrote: »

Thanks for your response. I wasn't being clear, so apologies - but I was referring to the new 2013/14 tax year.

So my plan is to stick with Santander until April 5th and then look to do what I originally posted, if this is allowed. So the ~£5k that i'd put into Coventry would be for the 2013/14 year, if that makes sense?

Is this still allowed?

Thanks again.

I've had a look at the specific terms for the Coventry 60 day ISA and you will be unable to put in money for 2013/2014

Specific Terms for 60 Day Notice ISA (3)

2. The minimum balance is £1 and the maximum balance is £5,640 (2012/2013 cash ISA allowance only). Subject to the maximum balance, deposits may be added up until close of business on 5th April 2013. Transfers into this account of previous tax years' subscriptions and subscriptions in future tax years are not allowed.

Seems to me it's only accepting money for 2012/2013. see the terms here https://www.coventrybuildingsociety.co.uk/savings-and-investments/application/SpecificTermsAndConds.aspx?prodCode=60NI3

bullinn1

is this a totally stupid idea ? I have £30k in a Santander cash isa, coming to the end of it's 'bonus' period and am wondering what to do with the cash, if Santander have a new deal I'll transfer to it, maybe, but then I thought ... I'll put it all into premium bonds and take a chance, this though loses my ISA allowance status, ie if I withdraw it all I can't go back ... is this a very foolish thing to do ?

innovate

Strikes me as an extremely foolish thing to do, for several reasons:

1. with £30K, you can transfer to other ISAs that pay 3% (e.g. the First Direct one). PBs only average 1.5% if you are lucky.
2. it took you several years to accumulate the £30K in a tax-free wrapper. Seems a crying shame to throw it away for a flutter.
3. as interest rates increase again in the future (so we all hope), both the above points become even weightier.

However, as the saying goes: a fool and his money are easily parted.