Top Cash ISAs Discussion Area

glocal

blueberrypie wrote: »

I think that the way you've put this is confusing. You can *have* as many cash ISAs with as many different providers as you like, but you can only *contribute new money* to one in each tax year.

So, subscribe for the year means putting any money, even £1, into any ISA, new or old. So, in this sense in April you can transfer an old ISA inc added interest money from one provider to another and once the transfer is complete add your £3,600.

Another question: suppose you have an ISA with a certain provider (A). Let's say that in May 2010 you choose to transfer that ISA to another provider (B) and create another new ISA with another provider (C) where you put your allowance for the new year. Is this possible?

If yes, suppose you want to merge the two ISAs at some point. So, can you contact provider D and ask them to collect the ISAs from B and C? Can this be done in 2010-11? Or do you have to wait until April 2011?

Well, I tried to come up with a scenario that raises as many issues as possible

poppy10_2

glocal wrote: »

Another question: suppose you have an ISA with a certain provider (A). Let's say that in May 2010 you choose to transfer that ISA to another provider (B) and create another new ISA with another provider (C) where you put your allowance for the new year. Is this possible?

Yes

If yes, suppose you want to merge the two ISAs at some point. So, can you contact provider D and ask them to collect the ISAs from B and C? Can this be done in 2010-11? Or do you have to wait until April 2011?

Yes, and no, you don't need to wait, you can transfer ISAs at any time without affecting your ability to open a new ISA in the same tax year. [/QUOTE]

The_Only_Homer_Simpson_UK

Err confused and not as the advert says SIMPLES! about switching /opening new ISa accounts to then move monies in the same tax year ....

We have Previous Cash ISA'a with Natwest and have started to pay in this year and just about at full amount ( until Nov when limit goes up for us) however in Sept rate drops at Natwest (bonus ends) --question can I open another Account elsewhere now or then using the "balance" of this years allowance and then transfer my Natwest one thats been partly used this year along with previous years to the new one?
How else can one use best payers and then when they drop rates move to a better one having already started using this years allowance ?
Thanks for the anticipated feedback/advice

Lokolo

The_Only_Homer_Simpson_UK wrote: »

Err confused and not as the advert says SIMPLES! about switching /opening new ISa accounts to then move monies in the same tax year ....

We have Previous Cash ISA'a with Natwest and have started to pay in this year and just about at full amount ( until Nov when limit goes up for us) however in Sept rate drops at Natwest (bonus ends) --question can I open another Account elsewhere now or then using the "balance" of this years allowance and then transfer my Natwest one thats been partly used this year along with previous years to the new one?
How else can one use best payers and then when they drop rates move to a better one having already started using this years allowance ?
Thanks for the anticipated feedback/advice

Yes thats exactly what you do.

blueberrypie

pastmaster wrote: »

I'm needing to start a cash savings ISA to cash in next July (endowment shortfall expected). I've looked at Martin's advice but some of it seems out of date (max. savings etc.). I can't therefore rely on recommendations for best home for my money. Any advice wulod be much appreciated. I'll be saving £1000 per month.

You won't be able to put £1000 per month into a cash ISA from now until next July, because the maximum per tax year is £3600. (The allowance is higher if you're over 50, but even then your £1000/month will take you over the allowance.)

ISAs and other savings accounts are really designed for long-term savings - you won't make a huge amount of interest in only a year unless you're investing a huge amount of money, or you're getting a very high rate of interest (and that's not going to happen at the minute).

If you look at the first page of this thread, you'll see a list of the best rates currently available for ISAs. You could also look at the best ordinary savings accounts - there are a couple of those paying (relatively) reasonable interest at the minute (A&L/Abbey is offering 6%, LTSB up to 4%, for example).

leaphaze

The_Only_Homer_Simpson_UK wrote: »

Err confused and not as the advert says SIMPLES! about switching /opening new ISa accounts to then move monies in the same tax year ....

We have Previous Cash ISA'a with Natwest and have started to pay in this year and just about at full amount ( until Nov when limit goes up for us) however in Sept rate drops at Natwest (bonus ends) --question can I open another Account elsewhere now or then using the "balance" of this years allowance and then transfer my Natwest one thats been partly used this year along with previous years to the new one?
How else can one use best payers and then when they drop rates move to a better one having already started using this years allowance ?
Thanks for the anticipated feedback/advice

No, you cannot open 'another Account elsewhere' since then you'd have two providers for the current year. You'd have to transfer your current year's ISA, thereby retaining just one provider for the year.

Jemima62

Hi, complete newbie here so please forgive potentially thick questions which may have been answered before (although I have scrolled through some of this thread - it's quite long and I don't know how to search for relevant answers!).

I've just received a redundancy payment and have opened a Halifax cash ISA. My husband also has a cash ISA in his name - with a different provider - to which he hasn't deposted any funds in this tax year. Can we use his ISA allowance to put away more of the money I received from my employer which is in a joint account?

I'm not sure if this is within the rules about allowances.

Thank you.

leaphaze

Jemima62 wrote: »

I've just received a redundancy payment and have opened a Halifax cash ISA. My husband also has a cash ISA in his name - with a different provider - to which he hasn't deposted any funds in this tax year. Can we use his ISA allowance to put away more of the money I received from my employer which is in a joint account?

Yes!

(answer lengthened since too short - must be least 10 characters)

stinky

Hi

I'll start by pointing out that although my maths is great, my understanding of AER's etc. is not. What I am trying to understand is this. My partner has £3600 (more in fact - but we'll limit it to £3600 for now) to invest this year. The ISA article always suggests that an ISA is the best investment, because it is tax free. However, I don't understand this advice.

Max interest rate for Top Cash ISA is IF at 2.75% - that seems shockingly low.

Max savings accounts also seem to top out at about the 3% mark.

So - why is it that some current accounts are paying 6%? Surely, even with my simple maths, 6% is far greater. Take of the tax 20% worth of the interest and you're still left with a far larger amount. So why not simply invest all of this money in a current account?

Even in the ISA calculator at the end of the article it shows the interest for a top ISA at 3% (yet lists the top buy as IF at 2.75%). And the top saving account at 3.46%. The difference in final interest isn't that great. So surely if you drop the ISA rate to the correct 2.75% rate and increase the savings rate to ? (what figure)

What I'd love to see is one of you financial wizards do a FAR better calculator on the site. Let me enter how much I have to save - lump or monthly. What interest rate I would get with an ISA what I would get in Savings, what I would get in a current account, with the tax amounts dedcuted. So that I can properly judge which is actually going to give me the best return on my money (actually my partners money).

It never ceases to amaze me how much money the average person must lose all the time (including me) due to the financial system being so overly complex that only uber geeks can understand it.

Paul

Lokolo

To be fair, you've grasped most of it.

Current accounts and such at 6% or whatever have limits and requires things. Like Lloyds gives x% for balances between Y and Z. After this theres no point, because the interest drops to 0.01% for anything over it.

I think its something like £5000-£7000 for Lloyds. Which is fine, put that amount in there.

The thing with ISAs is the compounding. You put £3,600 in, say 5% interest, means at the end of the year you have £3,780, so you've now got an extra £180 to get tax free interest. However, after 10 years this could make a difference. It really depends what you are saving up for.

ALSO rates weren't like this 2 years ago. Before you could get 6% in ISA, and 6% in savings, then the obvious choice is to go for the ISA. Its just at the moment they're a bit all over the place.

To be fair, just compare the rates. get the savings rate, times by 0.8. Thats the rate you will get after tax on savings, compare that with ISA, then just decide. Thats all you have to do.....