Top Cash ISAs Discussion Area

Lokolo

Regular ISAs are there for regular deposits, so £100 a month or whatever. Cash ISAs, which is what they are all called in reality, are just the same as normal savings accounts but they are 'wrapped' in an ISA.

You can deposit £3,600 from now until April 5th 2009 and a further £3,600 from April 6th. So if you have spare £3,600 now, open one before April 5th, deposit the £3,600. Come April 6th you can put in a further £3,600, making £7,200

newbie_newbie

So which is better in terms of interest rates, opening a regular saver ISA or a normal cash ISA, if I don't need to withdraw money?

Baldur

newbie_newbie wrote: »

So which is better in terms of interest rates, opening a regular saver ISA or a normal cash ISA, if I don't need to withdraw money?

It depends on the respective rates offered by each type.

Let's assume that you have a £3,600 lump sum available at the start of the ISA.

If you take First Direct's 7% Regular Saver Cash ISA, paying in the maximum of £300 per month (£3,600 over the 12 month period) would earn you around £135 in interest, plus any interest which the reducing lump sum is making in a non-ISA savings account while feeding into the FD ISA.

Paying the full amount into a 'normal' easy access Cash ISA, e.g. Barclays Golden ISA at 3.61%, would earn around £129.96 interest (assuming that the rate doesn't change over the full period of the ISA).

hdequintal

The questions i post to the forum is as follows:

I would like to deposit a lump sum of £3000 into cash ISA for the 2008/2009 allowance. Is that allowed if done before 1st april?

Is it then possible to deposit either a lump sum of £3600 or few deposits to the value of £3600 into another cash ISA after 1st april for the 2009/2010 allowance?

Would you have to find a cash ISA with another institution given they applied for on either end of the annual allowances?

Regards

littlemrtinkle

I would like to deposit a lump sum of £3000 into cash ISA for the 2008/2009 allowance. Is that allowed if done before 1st april? Until the 5th april (some providers may not allow you to put money in on the 5th).

Is it then possible to deposit either a lump sum of £3600 or few deposits to the value of £3600 into another cash ISA after 1st april for the 2009/2010 allowance?

From 6th April not the 1st, yes you can put another £3600 in, or open an isa with someone else.

KTF

hdequintal wrote: »

The questions i post to the forum is as follows:

I would like to deposit a lump sum of £3000 into cash ISA for the 2008/2009 allowance. Is that allowed if done before 1st april?

Is it then possible to deposit either a lump sum of £3600 or few deposits to the value of £3600 into another cash ISA after 1st april for the 2009/2010 allowance?

Would you have to find a cash ISA with another institution given they applied for on either end of the annual allowances?

Regards

Assuming you have not used your allowance for this year then yet you can put up to 3600 in a cash ISA up to April 5.

On April 6 you can put another 3600 in either the same ISA (so there would then be 7200 in the account) or open a new one and put it in that.

hdequintal

any recommendations on which institution is offering the best rate??

littlemrtinkle

barclays tax haven isa 3.61%
natwest 3.5% both of these are instant access.

halifax reward isa 3% fixed. (only 4 withdrawels allowed)

hdequintal

Sounds like Barclays will be the way to go, will have to get the ball rolling pretty quickly. Thanks for the advice. Awesome. Confirms tings i researched but was unsure.

KTF

If you want to transfer an existing ISA then the Barclays and Natwest ones mentioned are no good.