Top Cash ISAs Discussion Area

fluffymovie

Hi

Really sorry if this is a similar post but with 116 pages and counting, I couldn't quite see it!

So.... my husband is not a saver and when we booked a holiday for the summer, I asked him to set up an ISA in his name (mine is fully used for the year) and we both put money into it when we can. All going well and account has been open for about 4 months.

Last month, he was made redundant and received £23k which obviously, I would like him to get the best return on.

If he were to open a new ISA and put in the maximum, could we still pay money into the old ISA but not receive a tax free allowance on the money invested after opening the new one or do we have to close the ISA, transfer our holiday money into the best interest account we can find?

AlwaysLearnin

You can only put money in to one cash ISA for the current year, up to a maximum of £5,760 for 2013/14 tax year.

If you haven't added any money to your existing ISA this tax year then you're fine to open a new one where you like. You won't be able to continue contributing to the old one though.

You can transfer the old one if you find a better rate on an ISA that allows transfers in

Consumerist

fluffymovie wrote: »

. . . If he were to open a new ISA and put in the maximum, could we still pay money into the old ISA but not receive a tax free allowance on the money invested after opening the new one or do we have to close the ISA, transfer our holiday money into the best interest account we can find?

If he has not paid any money into an ISA since 6 April then he can open a new ISA with up to £5,760 for this tax year.

If he has paid any money into an ISA since 6 April then that ISA is the only ISA he can contribute to in this tax year. To get a better rate he can, however, transfer it. DO NOT transfer the ISA yourself or you will lose the tax-free wrapper. Ask the new new provider to transfer it. Download a transfer form or ask the new provider to send you one. The transfer process can take up to about 3 weeks but is often a matter of days, lately.

Johnnn

Do most new ISAs accept transfers in of current year's ISAs (as opposed to previous years)?

I was thinking of opening one with the Coventry at 2.6% (I applied in time) as a precaution against the offers in March next year being below this figure but it has a minimum £1 subscription.

I'm trying to assess the chances of being able to transfer this into an ISA with a better return if one is available or if not adding new funds to it next March.

Thanks,

John

DragonQ

I don't think ISAs make a distinction about transferring in a current year's subscription or previous years' subscriptions. They either allow transfers in or not.

Johnnn

Thanks DragonQ, but the Coventry ISA for one does allow current year transfers in, but not previous years.


John

sammybee

I need a new isa, its got to allow previous transfers, access online and no out penalties
ive been looking at the new isa s and the only ones suitable for me is halifax at 1.95%
or possibly cheshire at 2.3% but its post only (i prefer online)
do you think if i wait a while ie a month or so there might be better offers, i am now only getting 0.50% so i need to act soon

Consumerist

sammybee wrote: »

I need a new isa, its got to allow previous transfers, access online and no out penalties
ive been looking at the new isa s and the only ones suitable for me is halifax at 1.95% or possibly cheshire at 2.3% but its post only (i prefer online) do you think if i wait a while ie a month or so there might be better offers, i am now only getting 0.50% so i need to act soon

I would say get in to what easy-access ISA you can right now and see if something better comes along later - it's not looking too hopeful for that, in my view, however.

If you're put off by access to a postal ISA then you could use a normal savings account for online easy access then tip some into the ISA from time to time when you know you are not likely to need access to it. It's not a good idea, anyway, to keep withdrawing from an ISA - it's surprising how quickly you can reach your annual limit and then not be able to deposit any more.

AlwaysLearnin

sammybee wrote: »

I need a new isa, its got to allow previous transfers, access online and no out penalties
ive been looking at the new isa s and the only ones suitable for me is halifax at 1.95%
or possibly cheshire at 2.3% but its post only (i prefer online)
do you think if i wait a while ie a month or so there might be better offers, i am now only getting 0.50% so i need to act soon

Have a bit more of a look around before diving in, as there look to be slightly better rates available. For example, Santander (2%) and Barclays (2.1%), although not sure if you'd need another account with them for the full online banking.

It won't amount to much, but every little helps!

alpaca_jackie

The Cheshire instant access ISA needs a cheque deposit. No good if you have a cheque less Cahoot account!