ISA Transfer question and other saving question..

james_uk

Hi, I have some money which was left to me after my dad passed away, currently it's just sitting not earning anything.

I currently have 2 tax years maxed out in the TSB Cash ISA which is only 0.60% when i try to renew / convert this account online it only gives me the option of an account that's only 0.80%

Keeping with the same bank to try and make things easy, I have seen TSB have a 2-year fixed ISA which is 4.30%

2 years is about the max I want to do really.

If I did want this account, would I have to just apply for it online and then manually transfer the money into it? And would I only be able to transfer 20k into it and not the 40 i currently have in, or can I do an ISA transfer in some way that would transfer it all?

If I applied for that account, would I get the option to transfer a current ISA fully into it?

Or would i be best to do a proper ISA transfer, as would that mean it's still classed as the same ISA allowing me to still open another 2nd ISA so then have 2 at better rates?

Also, after sorting the ISA, I would like to put some remaining amount into a fixed saver (probably 2 years again).

Sticking with the same bank again (because there's not a huge difference in rates, I guess) I have seen TSB have a 2-year fixed saving account that gives 4.76%

Would I be correct in thinking I could have around £21000 in this to get about the max of £1000 interest?

I would have some additional money left, but think I may have exhausted my options with making money from saving, would that be right, maybe until opening another ISA next April?

I know this is probably a minefield, but any help would be grateful.

Regards

James

Albermarle

james_uk said:

Hi, I have some money which was left to me after my dad passed away, currently it's just sitting not earning anything.

I currently have 2 tax years maxed out in the TSB Cash ISA which is only 0.60% when i try to renew / convert this account online it only gives me the option of an account that's only 0.80%

Keeping with the same bank to try and make things easy, I have seen TSB have a 2-year fixed ISA which is 4.30%

2 years is about the max I want to do really.

If I did want this account, would I have to just apply for it online and then manually transfer the money into it?
Normally yes, open the new ISA and request a transfer in of the easy access ISA (presume that is what it is ?) And would I only be able to transfer 20k into it and not the 40 i currently have in, or can I do an ISA transfer in some way that would transfer it all? You can transfer any amount you like.

If I applied for that account, would I get the option to transfer a current ISA fully into it? If you mean an ISA that you have contributed to this year, then yes as long as it was all transferred

Or would i be best to do a proper ISA transfer, as would that mean it's still classed as the same ISA allowing me to still open another 2nd ISA so then have 2 at better rates? Not really sure what you mean by ' a proper ISA transfer' ?

Also, after sorting the ISA, I would like to put some remaining amount into a fixed saver (probably 2 years again).

Sticking with the same bank again (because there's not a huge difference in rates, I guess) I have seen TSB have a 2-year fixed saving account that gives 4.76%

Would I be correct in thinking I could have around £21000 in this to get about the max of £1000 interest? There is no maximum amount of interest, only that above certain amounts you will pay tax on the excess.

I would have some additional money left, but think I may have exhausted my options with making money from saving, would that be right, maybe until opening another ISA next April? No, you can put it all in a savings account, Even if you pay some tax it will be a better return than you get now.

I know this is probably a minefield, but any help would be grateful.

Regards

James

See answers in bold. If you spend some time reading through the forum, you will see lots of similar questions and answers, which will help you understand all the ISA /tax/savings accounts issues.

Dazed_and_C0nfused

Would I be correct in thinking I could have around £21000 in this to get about the max of £1000 interest?

Why do you think £1,000 is important?

It might be but often isn't.

james_uk

Hi, thank you both for your replies.

Albermarle - Thank you for all your answers, much appreciated. That pretty much helps with a lot of questions.

Dazed and C0nfused - £1000 wasn't especially important as such, someone did say to me that you can't make more than £1000 in 1 year, so that's the only reason I was using that as a figure. Is that not correct though as i am not 100% on that?

eskbanker

james_uk said:

Dazed and C0nfused - £1000 wasn't especially important as such, someone did say to me that you can't make more than £1000 in 1 year, so that's the only reason I was using that as a figure. Is that not correct though as i am not 100% on that?

The personal savings allowance is indeed £1,000 for a basic rate taxpayer, but D&C's point will be that there is also another nil-rate band (neither is technically an 'allowance' as such) available for low earners, as explained at https://www.moneysavingexpert.com/savings/tax-free-savings/

i'm-skint

I tried with TSB a few days ago, opened the ISA account instantly, but to fund/transfer money into it, it was a form filling exercise, that had to be posted back to them. In the end I opened and transferred to a YBS 2yr fixed instead. All done in 5 days.

james_uk

From what i have read, i think i will create a tsb 2 yr fixed saving account which offers 4.67% but as im skint has suggested, just create an isa with another bank that can offer an isa transfer online without the hassle of having to go to a bank or fill in lots of post.