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

jr941

The CORA chat keeps going blank on the app. It's so annoying so I cannot read any of their responses after sending my messages from there. Is there a way to access CORA via the browser after logging in? I have tried to take this route but to no avail so far

jr941

jr941 said:

Thank you for the above.

Update:

Natwest has transferred the £1003 to my savings. Also added the interest of around £2 or something first for keeping this money in this account for that duration. 

It also says: GRS/Close in that transaction: (Account number here)/GRS/CLOSE

Does this mean the second ISA of Natwest has been closed in the right manner?

I would be grateful, if someone could reply to the above, when convenient.

eskbanker

jr941 said:

jr941 said:

Thank you for the above.

Update:

Natwest has transferred the £1003 to my savings. Also added the interest of around £2 or something first for keeping this money in this account for that duration. 

It also says: GRS/Close in that transaction: (Account number here)/GRS/CLOSE

Does this mean the second ISA of Natwest has been closed in the right manner?

I would be grateful, if someone could reply to the above, when convenient.

No idea, to be honest - I don't know how NatWest would label a cancellation transaction versus a closure one, but you could always ask them whether or not they've handled it as a cancellation and if/how they'll report the account to HMRC next year?  On the other hand, the die is cast and there's nothing else you can do now anyway, so probably not worth pursuing....

masonic

It's a question for Natwest: "Did you process my recent ISA closure as a cancellation so that I will be treated as though I have not subscribed to the ISA?"

jr941

Thank you for your responses. The following is the question which I had sent to Natwest and awaiting response:

''Please also confirm that the ISA account has 'cancelled' in the right manner, and no charges will be incurred, plus, there will be no impact on the allowance of 20 k of this year, as it is cancelled within the cooling off period.''

Is the above sufficient?

By the way, when is the best time for me to look for a new fixed deposit ISA (is this the best possible option since I cannot go for a Lifetime ISA due to age) with the highest possible interest rate, so I can transfer 20 k?

I am assuming the earliest possible date to apply for this is 6th April 2024. Please correct me, if required.

masonic

That should hopefully get you the response you need, although they might mention something about having subscribed to the HTB ISA this year.

Yes, the next tax year begins on 6th April 2024, so you have a new £20k ISA allowance from that day and can spread between any number of ISAs you choose.

jr941

Is the best/safest way forward on 6th April - A fixed deposit ISA?

I am 'thinking' about putting 19 k in this and use the remaining allowance aka £1000 to try my luck with a trading ISA via freetrade. I don't know much about trading, so I only want to do this with a small amount

Are the interest rates of 4.60 percent or above likely to go down hill significantly by then? I remember not so long ago, we used to get almost zero interest rate

masonic

Who knows what rates will do over the next few months, so that is a decision for then not now.

On the S&S ISA, it would probably be wiser to use this for long term investing rather than trading, the latter is a mug's game. You can still use Freetrade, but resist the temptation of the flashing lights and stick your money into something boring like a global ETF.

jr941

What's S&S?

You stated: ''Global ETF''

I have Googled this. Did you mean any of these platforms:

1. eToro – Overall best ETF platform & great for copy trading
2. InvestEngine – Best ETF platform UK for beginners
3. interactive investor – Best ETF platform for selection of over 1,000 ETFs
4. Freetrade – Best ETF trading platform UK for free share upon signup
5. Hargreaves Lansdown – Best ETF broker UK for security & reputation
   
   To my current understanding, a 'global portfolio' recommended by one of the most recognised ETF platforms/brokers needs to be considered here. Please elaborate and I will do further due diligence on this. Many thanks. Cheers
   
   
   

eskbanker

jr941 said:

What's S&S?

Stocks & Shares, one of the four different types of ISA listed previously (or its contents, depending on context).

jr941 said:

You stated: ''Global ETF''

I have Googled this. Did you mean any of these platforms:

1. eToro – Overall best ETF platform & great for copy trading
2. InvestEngine – Best ETF platform UK for beginners
3. interactive investor – Best ETF platform for selection of over 1,000 ETFs
4. Freetrade – Best ETF trading platform UK for free share upon signup
5. Hargreaves Lansdown – Best ETF broker UK for security & reputation
   
   To my current understanding, a 'global portfolio' recommended by one of the most recognised ETF platforms/brokers needs to be considered here. Please elaborate and I will do further due diligence on this. Many thanks. Cheers
   

An ETF is a specific type of investment, and a 'global ETF' is one of these containing holdings of companies across the world - however, it's separate from the platform on which the investment is kept, so a global ETF can be held on any of those platforms.  @masonic's point was that it'll generally be more appropriate for an investor starting out to buy into something fairly generic and diversified and stick with it ('buy and hold', 'buy and forget') rather than believing it's viable to dip in and out of individual shares regularly, which would typically be seen as trading rather than investing.