Top Cash ISAs Discussion Area

rb10

guileyrulez wrote: »

I have a hypothetical basic question for Cash ISAs.

Last year I started the Tax year with £5000, and through savings I have deposited an additional £5000 in a Cash Isa with 2.75% interest.

The question I have is that, because my total savings are over my tax free allowance- does this mean I will be taxed on the £5k that, in effect, I already had? Or should I expect to receive the interest on the full £10k?

Thanks for your help in advance,

Alex

You will get interest on the whole £10k.

The limit on ISAs only applies to what you can pay in per tax year - any money already in the ISA, and any interest earned, is safe, and will continue to earn tax-free interest until you withdraw the cash.

Krinkle

Worth noting that, if you're looking to get a First Direct ISA, you need to have a FD current account...and that'll cost you £10 per month unless you fund it with/pay in each month £1500!

penrhyn

Krinkle wrote: »

Worth noting that, if you're looking to get a First Direct ISA, you need to have a FD current account...and that'll cost you £10 per month unless you fund it with/pay in each month £1500!

The fee waiver has been reduced to£1000 /month.

10_66

Krinkle wrote: »

Worth noting that, if you're looking to get a First Direct ISA, you need to have a FD current account...and that'll cost you £10 per month unless you fund it with/pay in each month £1500!

It doesn't cost £10 per month if you hold another "selected account" (see here, under "our terms"). I have an esaver with just £1 in so I don't have to pay their monthly fee.

gunmaker

guileyrulez wrote: »

I have a hypothetical basic question for Cash ISAs.

Last year I started the Tax year with £5000, and through savings I have deposited an additional £5000 in a Cash Isa with 2.75% interest.

The question I have is that, because my total savings are over my tax free allowance- does this mean I will be taxed on the £5k that, in effect, I already had? Or should I expect to receive the interest on the full £10k?

Thanks for your help in advance,

Alex

You don't actually say the original £5K was invested in an ISA. If it wasn't in an ISA then yes, you will pay tax on the interest for the original £5K and the interest on the £5K in the ISA will be tax free. However, if the entire £10K is in ISAs then it will all be tax free.

Krinkle

penrhyn wrote: »

The fee waiver has been reduced to£1000 /month.

...not according to the first direct website!

...where did you get your info?

KTF

Krinkle wrote: »

...not according to the first direct website!

...where did you get your info?

As of April 1:
http://www.moneysavingexpert.com/news/banking/2013/03/first-direct-reduces-minimum-deposit-on-1st-account

penrhyn

That would be telling, all-right then it was in a copy of revised T&C s sent to me by FD.

penrhyn

That would be telling, all-right then it was in a copy of revised T&C s sent to me by FD. Its also been flagged up elsewhere on the website.

ixia

Hi Just a couple of questions. I dont know that much about isas.

I have £5512 in a halifax isa it was opened in tax year 2011/12. I want to transfer it to the instant access santander isa at 2.5%. Can I transfer it just now or do I have to wait until the new tax year?

I haven't paid into it in 2012/13 but an interest payment went into it on the 12th July 2012 does that count as paying into it? just don't want to go ahead and transfer it incase that is the wrong thing to do. Thanks.