Top Cash ISAs Discussion Area

JimmyTheWig

forgery wrote: »

Ok, now I am confused, are suggesting not using the Barclays ISA at all? or can I transfer last years ISA into a different ISA for this year? As far as I was aware you could only pay in £3600 a year to an ISA full stop. But am I wrong? Are you to say I can have £3600 in my barclays ISA and then transfer last years ISA into a different one?

A common cause of confusion, don't worry!
The ISA limits (£3600 this year) is a limit on the amount of _new money_ that you can pay into an ISA in the tax year.
It doesn't include interest earned on the money that's there and it doesn't include money transfered from previous years' ISAs.

JimmyTheWig

forgery wrote: »

I have the 6.5% main savings account mentioned on this website. (the one that starts with a K, cannot remember the name). And apparently the interest on last years ISA has gone down to 5.31% so where do I put my £2,500? Do I keep it in my old ISA earning 5.31% but tax free, or put it in my other bigger savings account to earn a taxed 6.5%

Assuming that you are a tax payer then you will be better off with the ISA, even at what looks like quite a low rate.
If you are taxed at 20% on interest at 6.5% that, in effect, is the same as getting 5.2% after tax [6.5% x (1 - 0.2) = 6.5% x 0.8 = 5.2%]. You need to compare this to the untaxed 5.31% ISA rate. So the ISA is better.
But as already discussed, a better option would be to transfer it to a better paying ISA.

Baldur

forgery wrote: »

Are you to say I can have £3600 in my barclays ISA and then transfer last years ISA into a different one?

forgery

Yes

forgery wrote: »

Also is it actually possible to transfer from a Barclays ISA?

Yes, from posts by a number of former 'Tax Beater' ISA holders on these boards.

I've recently transferred in excess of £35,000 of past years' ISA funds, which go back as far as the start of ISAs (and farther, in the case of my former TESSA funds).;)

forgery

That's awesome! Thank you for clearing that up for me everybody! It now all makes sense!

Many Thanks

Forgery

Heinz

I think the answer's going to be yes but I need to ask:

I have previous years' ISA money in YBS (currently paying 5.55%) but intend to use this year's £3600 on opening a Barclays 6.5% Tax Haven ISA instead of paying it into the existing YBS ISA.

Next year, it's likely I'll want (need) to transfer all the money from both the YBS and Barclays ISAs into another ISA but will it be permissible to transfer to (say) 'Bloggs Bank Fantastic ISA' from two separate previous ISAs?

SaverSarah_2

Birmingham Midshires (linked to in the article) top rate has been withdrawn. Now offering 6.15, not nearly as good.

Anyone managed to take out Barclays Tax Haven ISA without having an appointment? We have a financial adviser, I don't want any other Barclays products - do they want out £7200 or not?!

magpiesaver

If you have an Abbey Direct ISA, Issue 1, check the interest rates - you'll be shocked! They are not easy to find on their website - you won't find the rates under "ISAs" or "Interest rates". You have to go to "Products and Services Directory", and then "Products no longer sold". There you will find the following (this next bit is pasted from an e-mail they sent me in response to my request for information on rates):
The interest rates on a Direct saver are tiered, depending on the amount in the account and whether the interest is paid monthly or annually.

If you have the interest paid annually, the rates as of the 1st of March 2008 are:

£200,000+ 4.40%

£100,000+ 3.80%

£50,000+ 3.65%

£10,000+ 3.35%

£2,000+ 3.25%

£1+ 3.15%

and if interest is paid Monthly:

£200,000+ 4.25%

£100,000+ 3.65%

£50,000+ 3.50%

£10,000+ 3.20%

£2,000+ 3.10%

£1+ 3.00%

... and this is before any adjustment in response to the recent fall in Bank Rate.

When I opened my account less than a year ago, the rate was 6.25%. I knew it had come down a little since then, but had no idea it had plummeted like this. Abbey do nothing to notify customers, except to put the information somewhere on their website.
You can, I think, transfer the money into their new Direct ISA issue 2 (currently 6.25%) but would you trust them not to drop the interest rates again without notifying you? I wouldn't. My money is going to elsewhere, and I'm in the process of complaining to Abbey about this shoddy treatment of existing customers.
Hope this helps someone else avoid nasty shock later in the year.

Crabman

Heinz wrote: »

I think the answer's going to be yes but I need to ask:

I have previous years' ISA money in YBS (currently paying 5.55%) but intend to use this year's £3600 on opening a Barclays 6.5% Tax Haven ISA instead of paying it into the existing YBS ISA.

Next year, it's likely I'll want (need) to transfer all the money from both the YBS and Barclays ISAs into another ISA but will it be permissible to transfer to (say) 'Bloggs Bank Fantastic ISA' from two separate previous ISAs?

Hey Heinz - you're right.

Take the A&L Direct ISA for example, you're able to send a transfer form to each previous provider so that the funds can be sent to the A&L account. Provided the account you choose next year doesn't have any strange terms/restrictions you'd be able to do the same.

Meltdown_2

Heinz wrote: »

Next year, it's likely I'll want (need) to transfer all the money from both the YBS and Barclays ISAs into another ISA but will it be permissible to transfer to (say) 'Bloggs Bank Fantastic ISA' from two separate previous ISAs?

Permissible according to HMRC rules, but 'Bloggs Bank Fantastic ISA' might not allow transfers in (you should check that nearer the time) and the YBS and Barclays ISAs might have transfer/closure charges (you should check that now).

boobbby

magpiesaver wrote: »

If you have an Abbey Direct ISA, Issue 1, check the interest rates - you'll be shocked! They are not easy to find on their website - you won't find the rates under "ISAs" or "Interest rates". You have to go to "Products and Services Directory", and then "Products no longer sold". There you will find the following (this next bit is pasted from an e-mail they sent me in response to my request for information on rates):
The interest rates on a Direct saver are tiered, depending on the amount in the account and whether the interest is paid monthly or annually.

If you have the interest paid annually, the rates as of the 1st of March 2008 are:

£200,000+ 4.40%

£100,000+ 3.80%

£50,000+ 3.65%

£10,000+ 3.35%

£2,000+ 3.25%

£1+ 3.15%

and if interest is paid Monthly:

£200,000+ 4.25%

£100,000+ 3.65%

£50,000+ 3.50%

£10,000+ 3.20%

£2,000+ 3.10%

£1+ 3.00%

... and this is before any adjustment in response to the recent fall in Bank Rate.

When I opened my account less than a year ago, the rate was 6.25%. I knew it had come down a little since then, but had no idea it had plummeted like this. Abbey do nothing to notify customers, except to put the information somewhere on their website.
You can, I think, transfer the money into their new Direct ISA issue 2 (currently 6.25%) but would you trust them not to drop the interest rates again without notifying you? I wouldn't. My money is going to elsewhere, and I'm in the process of complaining to Abbey about this shoddy treatment of existing customers.
Hope this helps someone else avoid nasty shock later in the year.

A stupid reply from Abbey as it is not possible to have £50,000+ in an ISA