Top Cash ISAs Discussion Area

alanji

The rule is you can only subscribe to one ISA in each tax year.
Remains to be seen how this will work with the increased limits announced in the budget. Many people will already have subscribed £3600 to a fixed rate ISA which will not accept any more contributions in October (when the limit increases).

Synonymous

Could someone give me some advice please?

I have approx £13k of old allowances in the Halifax Reward ISA fixed at 3% until end Feb 2010.

I have yet to subscribe to an ISA this year and potentially could use my allowance up by end of June 09 (2240 start of May, 800 end of May, 560 end of June).

Does anyone think I would have time to get the first direct current account and then the Reg saver 7% ISA before 5 May (to be able to pay in full amount)? And would it be worth it as I've already missed out on a month of interest?

Other alternative is the Barclays ISA at 3.61%, I think this would pay an extra £18ish against just whacking it all in the Halifax with the rest of my money? Is this rate likely to fluctuate much in the next year? I don't want to have to transfer it frequently to get the best deal so its tempting to keep it in the Halifax.

Help!

KTF

If you already have FD current account then yes as you can open the regular saver instantly. If you dont then you wont be able to open a current account with them before May 5 (when you can still make 12 payments).

The Barclays rate will almost certainly drop over the year just like their last ISA. The question is when so you could open a Barclays one and put in as much as you can then transfer it to your fixed Halifax one if/when the rate drops.

stphnstevey

alanji wrote: »

The rule is you can only subscribe to one ISA in each tax year.
Remains to be seen how this will work with the increased limits announced in the budget. Many people will already have subscribed £3600 to a fixed rate ISA which will not accept any more contributions in October (when the limit increases).

The limits are increasing part way through the year? Can you kindly elaborate please...........I am always interested in the Goverment incompetence!

Baldur

stphnstevey wrote: »

The limits are increasing part way through the year? Can you kindly elaborate please...........

Only for over 50s - see http://www.hmrc.gov.uk/budget2009/bn51.pdf

lookahead

According to First Direct I would receive £118 in interest by the end of the time if I put in the full £300 each month - NOT £135! Barclays Golden ISA would give £129.96 over the same period for £3,600.

rb10

lookahead wrote: »

According to First Direct I would receive £118 in interest by the end of the time if I put in the full £300 each month - NOT £135! Barclays Golden ISA would give £129.96 over the same period for £3,600.

You should get just over £135 in a year at FD. But remember that you have to add to this the interest earned where the money is coming from (assuming that you are drip-feeding from existing savings). Here you will earn an additional 1650*[interest rate] over the year.

Barclay's ISA is very unlikely to give that amount ... remember that this account has a variable rate, the FD one is fixed.

stormyrider

apt wrote: »

Was pleasantly surprised that First Direct have kept the Regular Saver Cash ISA at 7% fixed for 2009-10. It looks the obvious choice for anyone willing to have a First Direct current account and who does not need access to the money during the year. It should be opened before 6 May to allow you to pay in the full £3,600 during this tax year. Anyone wanting the Principality 5% regular ISA should open it ASAP as the fixed rate expires on 5 April 2010.

Only just come across the FD Isa and saw your post so thankyou apt.

I want to take one out but don't want to use my 2010/11 allowance as well. What I'd like to do is take one out now and make the first payment this week, then set the standing order up for the 1st of each month starting in June - that way the 12th payment would fall in this tax year and I wouldn't use up next years allowance.

Anyone have any experience of this ISA and whether I could do that?

Many thanks,

uniamboman

Hi all

I've had a look around the site as I always do but need more guidance...

I do not have a lump sum to invest in a new cash ISA this tax year, so a regular saver ISA sounds perfect for me. However the only one I can find advertised on this site and on the Internet is the First Account one, which requires you to have a First 1st current account I believe. Unfortunately I do not earn £23,000+ so that account isn't an option for me.

What would be the next best regular saver ISA? I could probably save £300 every month, maybe more (but I believe all regular saver ISAs are limited to £300 per month).

I would be OK with being locked into the account for 12 months with no withdrawal during that time.

Many thanks.

Baldur

I suspect that you've missed the boat as far as relatively high interest/fixed rate regular saver ISAs are concerned (other than the First Direct one).

Britannia offer one, but it's a variable rate account (currently offering 3.10%) - http://www.britannia.co.uk/home/_site/channels/savings/regular-savings/regular-saver-cash-isa/index.html#

Its interest rate is bettered by Barclays monthly saver, which offers 6% fixed (4.8% after basic rate tax) which could be used on maturity to fund your 2010/11 tax year's Cash ISA - http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?site=pfs&task=homefreegroup&value=14937