Top Cash ISAs Discussion Area

Consumerist

BenRymer1979 wrote: »

I just opened a Santander 123 Current Account after it was recommended on MSE for the 3% rate (which I'm earning currently). Not sure if the tax on my interest will make it worthwhile to use my ISA allowance this year though, as top ISA rate I qualify for is only 2.5%, but tax-free interest might make this worth more.

When it comes to ISAs at the moment, I think the trick is to consider your future plans. ISA rates might be poor at the moment but the tax-free interest could be for life.

badger09

BenRymer1979 wrote: »

Hello

I just opened a Santander 123 Current Account after it was recommended on MSE for the 3% rate (which I'm earning currently). Not sure if the tax on my interest will make it worthwhile to use my ISA allowance this year though, as top ISA rate I qualify for is only 2.5%, but tax-free interest might make this worth more.

Any suggestions?

Cheers,

Ben.

If you're a lower rate taxpayer, your 3% is earning 2.4% after tax. 2.5% is slightly better (obviously) but you can only pay in £5640 by 5th April and another £5760 after 6th.

You can get a bit more through Nationwide Flexdirect current account, or regular savers. Have a look around the Savings & Investments forum.

Consumerist

badger09 wrote: »

If you're a lower rate taxpayer, . . .

How does that compare with a basic-rate taxpayer?

badger09

Consumerist wrote: »

How does that compare with a basic-rate taxpayer?

Same

Sorry, slipped back in time there

rhombus99

currently have ISA with NAtionwide and already used allowance for 2012/2013. my account was fixed last time, think it ends October 2013.

As most people seem to think rates are gona get worse is it worth going for one of the 4 year fixed deals 3% PS When it says fixed for 4 years with (CLOSURE penalty:270 days' interest) Im assuming I'll still be able to transfer in at the start of every new year

Looking on the NAtionwide page it says

30 Month Fixed Rate ISA (Annual Interest) 2.80% for
says :-
"This account is only available to customers with a maturing Fixed Rate ISA account. Apply by selecting this account when submitting your maturity instructions."

assuming as mine is there till October it is classed as maturing.

Forgot to add with the Bonus I have 3.1% interest until October, so If I want to invest the new allowance when it starts is it possible to invest 5K at 2.80% and leave the money I already had there at 3.1%

rb10

rhombus99 wrote: »

currently have ISA with NAtionwide and already used allowance for 2012/2013. my account was fixed last time, think it ends October 2013.

As most people seem to think rates are gona get worse is it worth going for one of the 4 year fixed deals 3% PS When it says fixed for 4 years with (CLOSURE penalty:270 days' interest) Im assuming I'll still be able to transfer in at the start of every new year

Looking on the NAtionwide page it says

30 Month Fixed Rate ISA (Annual Interest) 2.80% for
says :-
"This account is only available to customers with a maturing Fixed Rate ISA account. Apply by selecting this account when submitting your maturity instructions."

assuming as mine is there till October it is classed as maturing.

Forgot to add with the Bonus I have 3.1% interest until October, so If I want to invest the new allowance when it starts is it possible to invest 5K at 2.80% and leave the money I already had there at 3.1%

Firstly, most fixed rate accounts do not allow you to add funds to the same account in later years. You would have to open a new account for next year's allowance.

Your account will not be classed as maturing, as it doesn't mature until October. So you are not eligible for those rates.

Check the ISA that you have at the moment - does it display online as a Fixed ISA? If not (and it shows, for example, as an Online ISA, or an e-ISA), then you can add your 2013/14 allowance to the same account.

If it is a fixed ISA, then you'll have to open a separate account for your 2013/14 allowance. Nationwide are rumoured to be releasing new ISAs on Saturday, so it would be worth waiting a few days before you commit.

rhombus99

rb10 wrote: »

Firstly, most fixed rate accounts do not allow you to add funds to the same account in later years. You would have to open a new account for next year's allowance.

Your account will not be classed as maturing, as it doesn't mature until October. So you are not eligible for those rates.

Check the ISA that you have at the moment - does it display online as a Fixed ISA? If not (and it shows, for example, as an Online ISA, or an e-ISA), then you can add your 2013/14 allowance to the same account.

If it is a fixed ISA, then you'll have to open a separate account for your 2013/14 allowance. Nationwide are rumoured to be releasing new ISAs on Saturday, so it would be worth waiting a few days before you commit.

thanks for reply RB

Just checked and its an Online ISA Issue 3, so looks like maybe able to add when new year starts again but now sure how it works.

If I add what interest will i get, the 2.80% for the new money and 3.10% for the previous money.

Then in October as the bonus disappears on the old money and drops 1% will i have to reinvest that in whatever NAtionwide rate will be then. SO confusing :rotfl:

boobbby

rb10 wrote: »

Firstly, most fixed rate accounts do not allow you to add funds to the same account in later years. You would have to open a new account for next year's allowance.

Your account will not be classed as maturing, as it doesn't mature until October. So you are not eligible for those rates.

Check the ISA that you have at the moment - does it display online as a Fixed ISA? If not (and it shows, for example, as an Online ISA, or an e-ISA), then you can add your 2013/14 allowance to the same account.

If it is a fixed ISA, then you'll have to open a separate account for your 2013/14 allowance. Nationwide are rumoured to be releasing new ISAs on Saturday, so it would be worth waiting a few days before you commit.

Most don't but I believe Lloyds still do. I was lucky to open a fixed 2 year ISA at 3.7% which I can add or transfer too until April 2014

Lara

If you complete the online ISA form for Santander and submit what happens if your cheque doesn't get there in time tomorrow?

I tried to call & ask them but message was I could be on hold for 30 mins plus. Santander recorded message also said the 2012/13 ISA applications close today - not tomorrow. Thanks for any advice.

tasty_snacks

Lara wrote: »

If you complete the online ISA form for Santander and submit what happens if your cheque doesn't get there in time tomorrow?

I tried to call & ask them but message was I could be on hold for 30 mins plus. Santander recorded message also said the 2012/13 ISA applications close today - not tomorrow. Thanks for any advice.

Lara - I opened a Santander ISA in my wife's name earlier this year. I didn't want to send a cheque, but transfer directly into the ISA account details provided (this option is not listed on the application form) from my Natwest current account. At the time I called to ask if this was permissable, and it was. I transferred the cash electronically and instantly with no hassle at all, and have been topping it up in this way since.

Incidentally, I've just opened a 12/13 ISA in my name with Santander, and mildly panicked when I received an email telling me "the application would be processed within 3 working days..." Sit tight, another email follows 10-15 mins later with the new ISA account details. Again, I'm going to transfer straight from my Natwest current account now rather than send a cheque.

EDIT - just completed transfer from Natwest to Santander, no issues once again.