Top Cash ISAs Discussion Area

rb10

typistretired wrote: »

Just put my full isa allowance for this year 2013-2014 into my Nationwide Online ISA Issue 3 which pays 3.10% until September 30th 2013. I had to confirm an online form for tax purposes saying I was renewing my ISA to put more money in it. Does this mean I cannot open an ISA with a decent interest rate, which allows transfers into it this tax year, then put nothing in it until after September 30th 2013 when my Nationwide interest drops.

You can do what you like with transfers, at any time.

The only restriction is that the £5,740 that you paid in today must all stay together until the end of the current tax year (i.e. you can move it all[/] to a different account, but cannot move just part of it).

No problem to open a new ISA if you are not paying any new money into it.

typistretired

Has anyone opened an ISA and put nothing it for a while. I notice that some say minimum £1 and I don't want to put any money in until 1st October 2013.

rb10

typistretired wrote: »

Has anyone opened an ISA and put nothing it for a while. I notice that some say minimum £1 and I don't want to put any money in until 1st October 2013.

You will probably find that the bank closes the account if it's not funded.

To get around it, just transfer £1 to the new ISA.

DragonQ

There's usually a time limit between opening the account and making the first deposit (maybe 3-4 weeks). After that they'll just close it.

If the minimum deposit and balance are £1 then you should have no problems just putting in £1 and leaving it for however long you want. Remember though that all of your current year's subscription has to be in one place, so you're "locked in" once that £1 has gone in (aside from using ISAs that allow transfers in).

typistretired

Can't, already put full allowance into Nationwide to get the 3.10% until 30th September 2013. I know you can open savings accounts and put nothing in them even though they say minimum £1 just wondered if anyone had done the same with the ISA's as the tax people get informed about openings of ISA's.

rb10

typistretired wrote: »

Can't, already put full allowance into Nationwide to get the 3.10% until 30th September 2013. I know you can open savings accounts and put nothing in them even though they say minimum £1 just wondered if anyone had done the same with the ISA's as the tax people get informed about openings of ISA's.

You can just transfer £1 (using an ISA transfer form) from an ISA you already hold, as long as the £1 isn't coming out of the current year allowance.

Or simply wait and see what is around in October.

leaphaze

typistretired wrote: »

Can't, already put full allowance into Nationwide to get the 3.10% until 30th September 2013. I know you can open savings accounts and put nothing in them even though they say minimum £1 just wondered if anyone had done the same with the ISA's as the tax people get informed about openings of ISA's.

You can open as many ISas as you want. It's only when you subscribe (i.e. pay some money in) that it becomes your ISA account for the current tax year.

A few years back I opened a Natwest ISA. I heard nothing from them for a painfully long time, so I opened another ISA with another provider (can't remember who). That was sorted within a few days so they got my money.

Funnily enough I got a letter from NatWest a few weeks ago, reminding me that the 2012/13 tax year was nearing it's end and did I want pay into my ISA! Bless 'em! :rotfl:

cookieyum

I see that saffron BS has a regulary saving isa (4.00) saving 480 a month, I have a saving account with them but iam strugging to work out if this will work out better than putting the full amount in a 2.55 account straight away

many thanks

marathonic

cookieyum wrote: »

I see that saffron BS has a regulary saving isa (4.00) saving 480 a month, I have a saving account with them but iam strugging to work out if this will work out better than putting the full amount in a 2.55 account straight away

many thanks

It depends on the after tax interest rates your funds are earning whilst waiting to be drip-fed into the ISA. Obviously, you wouldn't have it sitting in an account earning 0.1%

YorkshireBoy

cookieyum wrote: »

I see that saffron BS has a regulary saving isa (4.00) saving 480 a month, I have a saving account with them but iam strugging to work out if this will work out better than putting the full amount in a 2.55 account straight away

With drip feeding regular savers (from a 3% gross account) your total return over a year is...

£5760 x 4% / 12 x 6.5 = £124.80

£5760 x 3% / 12 x 5.5 x 0.8 = £63.36

Total return = £188.16

Shifting the whole lot into Leeds BS will make you...

£5760 x 2.55% = £146.88 over the same period.

Tweak the numbers (your existing savings account rate may not be as good as 3%, but if it isn't...why isn't it?) to suit your circumstances.