Confused - ISAs - One of the Banks talking nonsense it seems :/

jr941

slinger2 said:

You can only deposit £20k each tax year (best not to use the word "transfer" as it has a specific meaning for ISAs). So you can now put £20k into the 2-year fixed rate cash ISA. Almost certainly you won't be able to add to that ISA next year. However you can open a completely new one, another 2-year or perhaps a 1-year so it matures at the same time as the other. Same provider or a different one.

Oh so the maturity of 2 year is another issue? Is it best to choose ONE year of fixed deposit ISA to keep things simple?

jr941

Kim_13 said:

Late to this thread, unfortunately - but wouldn’t transferring the £1,800 of the (then) current year funds from the H2B to a S&S ISA have rectified the breach, assuming of course that NatWest did cancel rather than close the fixed product? OP - don’t do this now, it’s too late to make a difference, as 23/24 has ended as you say. If you wish to open a S&S ISA, do so with new money from this year’s allowance. If you just wanted to put a small amount in to try S&S, then Vanguard would accept £500 with no requirement for an ongoing Direct Debit - but you can only invest in Vanguard funds through them. Hargreaves Lansdown are minimum £100 with no direct debit and a wider range of funds, but I believe fees are higher.

If you want a fixed rate Cash ISA that you will still be able to add to in 25/26, then you should go with Shawbrook, Kent Reliance or apparently, Lloyds. Though as a Halifax customer (their accounts often mirror each other, as they are in the same group) I looked into theirs and future year contributions wouldn’t be accepted. One of these would be good if you think that Fixed ISA rates may be lower next tax year, as you’d otherwise be limited to the rates on offer on a new product at that time.

As you’re over 40, it’s impossible for you to contribute to an invalid combination of ISA’s in this tax year. I downloaded the SavingsGoal app (others are available I’m sure) and set a target with £20,000 for ISAs and add each ISA contribution there, which makes it easier to keep track of how much allowance I have remaining now that multiple ISAs are allowed.
 

Thanks. I will definitely try this app, Kim.

jr941

Beddie said:

"P.S. I am thinking to transfer 19 k and try my luck with the remaining 1000 in stocks and shares or global ETF or something. Is this a reasonable approach?"

If you want to do it for a bit of fun, then yes, go for it. Won't make much difference to your bigger financial picture, but if it's money you can leave to grow then I don't see why not. You can always add to it next tax year too.

Trading212 is good for a cheap way to buy and hold ETFs, but there are many others.

I remember downloading Trading212 but then do much. What's the safest way to trade on this platform in your perspective? I am quite fearful of the dreaded 'Margin call' - To my understanding, people need to keep separate funds in their security account and when/if the 'open position/investment' goes in the opposite direction, then there is a chance of all that security money along with the investment vanishing

Can people trade with this lousy margin call nonsense as disabled. If I think something will increase in value like gold or silver or oil or whatever, but in the next five years to go down, I really want to be in a position to do nothing and just sit on what I have purchased. Which reliable platforms support such investments?

Once again, thanks everyone. All your assistance is much appreciated.

slinger2

jr941 said:

slinger2 said:

You can only deposit £20k each tax year (best not to use the word "transfer" as it has a specific meaning for ISAs). So you can now put £20k into the 2-year fixed rate cash ISA. Almost certainly you won't be able to add to that ISA next year. However you can open a completely new one, another 2-year or perhaps a 1-year so it matures at the same time as the other. Same provider or a different one.

Oh so the maturity of 2 year is another issue? Is it best to choose ONE year of fixed deposit ISA to keep things simple?

Depends what you want. In some ways the 2-year option is simpler. With a 1-year you'll have to decide what to do at the end of that year. See what you're current provider offers or perhaps transfer to a new provider. Next year's £20k could probably be added at that time. The whole system is quite flexible, it all depends what you want. However it's always worth reading the small print to see what restrictions the accounts have.

Beddie

jr941 said:

Beddie said:

"P.S. I am thinking to transfer 19 k and try my luck with the remaining 1000 in stocks and shares or global ETF or something. Is this a reasonable approach?"

If you want to do it for a bit of fun, then yes, go for it. Won't make much difference to your bigger financial picture, but if it's money you can leave to grow then I don't see why not. You can always add to it next tax year too.

Trading212 is good for a cheap way to buy and hold ETFs, but there are many others.

I remember downloading Trading212 but then do much. What's the safest way to trade on this platform in your perspective? I am quite fearful of the dreaded 'Margin call' - To my understanding, people need to keep separate funds in their security account and when/if the 'open position/investment' goes in the opposite direction, then there is a chance of all that security money along with the investment vanishing

Can people trade with this lousy margin call nonsense as disabled. If I think something will increase in value like gold or silver or oil or whatever, but in the next five years to go down, I really want to be in a position to do nothing and just sit on what I have purchased. Which reliable platforms support such investments?

Once again, thanks everyone. All your assistance is much appreciated.

I wasn't thinking of doing trading on there, much too risky! Just open an ISA or non-ISA account and buy a global ETF, as you mentioned.

jr941

Beddie said:

jr941 said:

Beddie said:

"P.S. I am thinking to transfer 19 k and try my luck with the remaining 1000 in stocks and shares or global ETF or something. Is this a reasonable approach?"

If you want to do it for a bit of fun, then yes, go for it. Won't make much difference to your bigger financial picture, but if it's money you can leave to grow then I don't see why not. You can always add to it next tax year too.

Trading212 is good for a cheap way to buy and hold ETFs, but there are many others.

I remember downloading Trading212 but then do much. What's the safest way to trade on this platform in your perspective? I am quite fearful of the dreaded 'Margin call' - To my understanding, people need to keep separate funds in their security account and when/if the 'open position/investment' goes in the opposite direction, then there is a chance of all that security money along with the investment vanishing

Can people trade with this lousy margin call nonsense as disabled. If I think something will increase in value like gold or silver or oil or whatever, but in the next five years to go down, I really want to be in a position to do nothing and just sit on what I have purchased. Which reliable platforms support such investments?

Once again, thanks everyone. All your assistance is much appreciated.

I wasn't thinking of doing trading on there, much too risky! Just open an ISA or non-ISA account and buy a global ETF, as you mentioned.

Hmm interesting. Which platform is the safest and cheapest to use to buy a global ETF?

Beddie

jr941 said:

Beddie said:

jr941 said:

Beddie said:

"P.S. I am thinking to transfer 19 k and try my luck with the remaining 1000 in stocks and shares or global ETF or something. Is this a reasonable approach?"

If you want to do it for a bit of fun, then yes, go for it. Won't make much difference to your bigger financial picture, but if it's money you can leave to grow then I don't see why not. You can always add to it next tax year too.

Trading212 is good for a cheap way to buy and hold ETFs, but there are many others.

I remember downloading Trading212 but then do much. What's the safest way to trade on this platform in your perspective? I am quite fearful of the dreaded 'Margin call' - To my understanding, people need to keep separate funds in their security account and when/if the 'open position/investment' goes in the opposite direction, then there is a chance of all that security money along with the investment vanishing

Can people trade with this lousy margin call nonsense as disabled. If I think something will increase in value like gold or silver or oil or whatever, but in the next five years to go down, I really want to be in a position to do nothing and just sit on what I have purchased. Which reliable platforms support such investments?

Once again, thanks everyone. All your assistance is much appreciated.

I wasn't thinking of doing trading on there, much too risky! Just open an ISA or non-ISA account and buy a global ETF, as you mentioned.

Hmm interesting. Which platform is the safest and cheapest to use to buy a global ETF?

As already mentioned - Trading212!

jr941

Oh my bad. Thanks. To my understanding the dreaded margin calls apply to global ETFs as well:

''Do ETFs have margin calls?

Yes, it's important you understand when trading some securities or trading in certain situations, there's a potential for an increased margin-call risk. Specifically: Trading low-priced stocks. Trading volatile stocks (e.g., leverages ETFs, IPOs, or options)

What is a global margin call?

A margin call happens when an investor is forced to quickly come up with cash to cover debt incurred while trading. This generally results from a drop in the market value of assets, such as stocks, that have been used as collateral for loans.''

Is there a way to avoid or completely eliminate this margin call scenario? Ideally, I wish to invest in stuff and then sit on it irrespective of the fluctuation in the price.

Thanks

masonic

jr941 said:

Oh my bad. Thanks. To my understanding the dreaded margin calls apply to global ETFs as well:

''Do ETFs have margin calls?

Yes, it's important you understand when trading some securities or trading in certain situations, there's a potential for an increased margin-call risk. Specifically: Trading low-priced stocks. Trading volatile stocks (e.g., leverages ETFs, IPOs, or options)

What is a global margin call?

A margin call happens when an investor is forced to quickly come up with cash to cover debt incurred while trading. This generally results from a drop in the market value of assets, such as stocks, that have been used as collateral for loans.''

Is there a way to avoid or completely eliminate this margin call scenario? Ideally, I wish to invest in stuff and then sit on it irrespective of the fluctuation in the price.

Thanks

The text you've quoted is complete nonsense and doesn't apply to global ETFs. These hold companies that are part of a global index, and those companies can never be worth less than nothing.