LGPS OAP & ISA ?

RULAST

I went and opened a little cash ISA myself today with my bank based on learning from your good selves today. I transferred a small amount of money in to it today subsequently. I now saw something about CANNOT put money in to 2 ISAs same year. So I'm thinking I've perhaps learned from my own eagerness. If I read up more CAN I OPEN ANOTHER CASH ISA with a better interest rate once the new tax year starts and leave the old today ISA alone with those few hundred pounds in this not breaking any rules/laws?  Advise please. Sorry to pester more. I do want to stick with Cash ISAs 

ColdIron

[Deleted User] said:

The term OAP is rather outdated these says. I will start receiving my state pension in July. I would probably thump someone who called me an OAP lol. Sixty six isn't old these days.

Hear hear, I'm due mine in 2025

I will also be eligible for an Older Person's Bus Pass at that time which is almost as bad. In practice, as I live in London, I'll just swap my 60+ Oyster Card for a Freedom Pass which sounds so much better

RULAST

Sarahspangles said:

RULAST said:

Thankyou SarahSpangles. This makes it clearer and I've informeded them on your comment. They send thanks. Maybe I didn't help and was getting muddled on pension v savings(ISA). I do have a question in my head that asks why Martin/MSE (on TV etc) are saying open an ISA now before April this year?. So does it mean I myself could put example £2k pounds in a simple ISA now/today and get the interest (about1.5%) all paid out tax free at the start of the new tax year starting very soon in April??. That sounds cool as my little bank saver account pays 1.4% and gets taxed as well. Am I understanding it correct regarding Martin comment?

I’m glad it helped.

No, Martin is encouraging people to open an ISA now because we’re allowed to save up to £20,000 each year, and the year ‘resets’ from 6th April the first day of the new tax year. So if you have lots to save, putting some in this week, and some after 6th April shelters more of your savings from tax.

But if you save £2,000 today most ISA’s will pay your interest into the account on 30th March 2025.

However you can definitely beat 1.4%, and you may not even be paying tax on that as most people can earn £1,000 in savings interest.

If your savings aren’t large, there are regular saver accounts where you pay a bit in every month, that offer over 5% a year. High Street banks like Halifax are included.

If you need to avoid paying tax, there are easy-access ISAs like the Post Office’s that pay 4.9% but that one’s online.

Sarahspangles said:

RULAST said:

Thankyou SarahSpangles. This makes it clearer and I've informeded them on your comment. They send thanks. Maybe I didn't help and was getting muddled on pension v savings(ISA). I do have a question in my head that asks why Martin/MSE (on TV etc) are saying open an ISA now before April this year?. So does it mean I myself could put example £2k pounds in a simple ISA now/today and get the interest (about1.5%) all paid out tax free at the start of the new tax year starting very soon in April??. That sounds cool as my little bank saver account pays 1.4% and gets taxed as well. Am I understanding it correct regarding Martin comment?

I’m glad it helped.

No, Martin is encouraging people to open an ISA now because we’re allowed to save up to £20,000 each year, and the year ‘resets’ from 6th April the first day of the new tax year. So if you have lots to save, putting some in this week, and some after 6th April shelters more of your savings from tax.

But if you save £2,000 today most ISA’s will pay your interest into the account on 30th March 2025.

However you can definitely beat 1.4%, and you may not even be paying tax on that as most people can earn £1,000 in savings interest.

If your savings aren’t large, there are regular saver accounts where you pay a bit in every month, that offer over 5% a year. High Street banks like Halifax are included.

If you need to avoid paying tax, there are easy-access ISAs like the Post Office’s that pay 4.9% but that one’s online.

Sarahspangles said:

RULAST said:

Thankyou SarahSpangles. This makes it clearer and I've informeded them on your comment. They send thanks. Maybe I didn't help and was getting muddled on pension v savings(ISA). I do have a question in my head that asks why Martin/MSE (on TV etc) are saying open an ISA now before April this year?. So does it mean I myself could put example £2k pounds in a simple ISA now/today and get the interest (about1.5%) all paid out tax free at the start of the new tax year starting very soon in April??. That sounds cool as my little bank saver account pays 1.4% and gets taxed as well. Am I understanding it correct regarding Martin comment?

I’m glad it helped.

No, Martin is encouraging people to open an ISA now because we’re allowed to save up to £20,000 each year, and the year ‘resets’ from 6th April the first day of the new tax year. So if you have lots to save, putting some in this week, and some after 6th April shelters more of your savings from tax.

But if you save £2,000 today most ISA’s will pay your interest into the account on 30th March 2025.

However you can definitely beat 1.4%, and you may not even be paying tax on that as most people can earn £1,000 in savings interest.

If your savings aren’t large, there are regular saver accounts where you pay a bit in every month, that offer over 5% a year. High Street banks like Halifax are included.

If you need to avoid paying tax, there are easy-access ISAs like the Post Office’s that pay 4.9% but that one’s online.

Sarahspangles said:

RULAST said:

Thankyou SarahSpangles. This makes it clearer and I've informeded them on your comment. They send thanks. Maybe I didn't help and was getting muddled on pension v savings(ISA). I do have a question in my head that asks why Martin/MSE (on TV etc) are saying open an ISA now before April this year?. So does it mean I myself could put example £2k pounds in a simple ISA now/today and get the interest (about1.5%) all paid out tax free at the start of the new tax year starting very soon in April??. That sounds cool as my little bank saver account pays 1.4% and gets taxed as well. Am I understanding it correct regarding Martin comment?

I’m glad it helped.

No, Martin is encouraging people to open an ISA now because we’re allowed to save up to £20,000 each year, and the year ‘resets’ from 6th April the first day of the new tax year. So if you have lots to save, putting some in this week, and some after 6th April shelters more of your savings from tax.

But if you save £2,000 today most ISA’s will pay your interest into the account on 30th March 2025.

However you can definitely beat 1.4%, and you may not even be paying tax on that as most people can earn £1,000 in savings interest.

If your savings aren’t large, there are regular saver accounts where you pay a bit in every month, that offer over 5% a year. High Street banks like Halifax are included.

If you need to avoid paying tax, there are easy-access ISAs like the Post Office’s that pay 4.9% but that one’s online.

So grateful for your continued advice... Could you look at my reply question below starting "I went and opened a little cash ISA myself today....." thanks soooooo much.

xylophone

I went and opened a little cash ISA myself today with my bank based on learning from your good selves today. I transferred a small amount of money in to it today subsequently. I now saw something about CANNOT put money in to 2 ISAs same year. So I'm thinking I've perhaps learned from my own eagerness. If I read up more CAN I OPEN ANOTHER CASH ISA with a better interest rate once the new tax year starts and leave the old today ISA alone with those few hundred pounds in this not breaking any rules/laws?  Advise please. Sorry to pester more. I do want to stick with Cash ISAs 

You can fund a cash ISA with another provider from 6 April.

And from that date, the rules change - see section 1.2

https://www.gov.uk/government/publications/tax-free-savings-newsletter-11/tax-free-savings-newsletter-11

Sarahspangles

RULAST said:

So grateful for your continued advice... Could you look at my reply question below starting "I went and opened a little cash ISA myself today....." thanks soooooo much.

When it says ‘one a year’ it’s one every tax year. The next tax year starts on 6th April, a week today!

You have a choice of adding to the one you just opened or looking for another one.

RULAST

xylophone said:

I went and opened a little cash ISA myself today with my bank based on learning from your good selves today. I transferred a small amount of money in to it today subsequently. I now saw something about CANNOT put money in to 2 ISAs same year. So I'm thinking I've perhaps learned from my own eagerness. If I read up more CAN I OPEN ANOTHER CASH ISA with a better interest rate once the new tax year starts and leave the old today ISA alone with those few hundred pounds in this not breaking any rules/laws?  Advise please. Sorry to pester more. I do want to stick with Cash ISAs 

You can fund a cash ISA with another provider from 6 April.

And from that date, the rules change - see section 1.2

https://www.gov.uk/government/publications/tax-free-savings-newsletter-11/tax-free-savings-newsletter-11

THANKS xylophone,,, I think i read 1.2 correct... heres my summary if you can check if im right please..
1) The Cash ISA that i opened today (year23/24) now has a bit of money deposited today!.
2) I can leave that ISA to run in 24/25 year
3) I can correct my error and open a NEW CASH ISA in 24/25 year with a better APR
4) I cannot add any money to todays ISA in 24/25 (not that I would want to)  OR DOES 1.2 SAY I CAN?
5) I assume i can pull all money out of todays ISA in 24/25 and ultimately move in to the better APR one?
AM I GETTING THERE?.
Should I close todays ISA if you advise?

xylophone

No need to close today's ISA - you can ask your new provider to organise a transfer in to a new ISA once you have opened it, provided that your chosen provider accepts transfers in.

From April 6, it would be possible eg to open a one year Fixed Rate cash ISA with Provider A and deposit £5000, a flexible cash ISA with  Provider B and deposit £10,000,  a Loyalty cash ISA with Provider C and deposit £2000 and a two year Fixed Rate cash ISA with Provider D and deposit £3000.

https://www.which.co.uk/money/savings-and-isas/isas/cash-isas/cash-isa-rules-and-allowances-aR5dQ5B0vmpi

RULAST

Good morning xylophone,
Happy Easter Sunday..
Just to clarify then please:-
a)
Yesterday saw my opening of a 'Cash ISA Saver' type account.

b)
Could I then open another same 'Cash ISA Saver' account with another provider for year 24/25?

c)
Could I have/keep open both 'Cash ISA Saver accounts in 24/25.... then put money in original a) above and ALSO put money in b) above during 24/25 or am I restricted to only putting money in to one of them during 24/25?. The reason I ask is that your explanation relates to working between 2 ISA accounts but of different types...

d) Transfer between the 2 'Cash ISA Saver' accounts during 24/25 (if I so wish, albeit unlikely)

I'm nearly there in my needed understanding!!!!

Thankyou for continued help. So grateful....
ENJOY YOUR DAY.. :-)

RULAST

xylophone said:

No need to close today's ISA - you can ask your new provider to organise a transfer in to a new ISA once you have opened it, provided that your chosen provider accepts transfers in.

From April 6, it would be possible eg to open a one year Fixed Rate cash ISA with Provider A and deposit £5000, a flexible cash ISA with  Provider B and deposit £10,000,  a Loyalty cash ISA with Provider C and deposit £2000 and a two year Fixed Rate cash ISA with Provider D and deposit £3000.

https://www.which.co.uk/money/savings-and-isas/isas/cash-isas/cash-isa-rules-and-allowances-aR5dQ5B0vmpi

Thanks.. just dropped you a new reply.. :-)

xylophone

On 6 April 2024, you will have 23/4 cash ISA (a).

Under the old rules, if you subscribed  some cash from your  24/25 allowance to this account, you would not have been able to open  another cash ISA with a different provider in the 24/5 tax year to subscribe the balance or (part balance) of your allowance. 

If you wanted to move part of the money in that ISA to a new provider, all of what you had subscribed  in 24/25 would have had to be  transferred.

Under the new rules, from 6 April, you would be able to subscribe part of your £20,000 allowance to cash  ISA (a) and the balance to a new cash ISA (b) with a different provider.

You would also be allowed to transfer part of new cash ISA (b)  to another cash ISA (c) with yet another provider.

You must however bear in mind that you must check the terms and conditions of each account provider.

Example

https://www.skipton.co.uk/life-and-money/new-isa-rules

https://www.coventrybuildingsociety.co.uk/member/isas-explained/whats-new-in-the-world-of-isas.html


However, are you making heavy weather of this?

You don't appear to be very happy with the ISA you have just opened.

You could check which providers allow transfers in, open an ISA on or after 6 April with that provider, request a transfer in and proceed from there?

Indeed you could open an ISA with a new provider now and request the transfer in of all the money in the ISA you have just opened!

You can check ISA rates (and indeed other rates) here

https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

It would also give time for providers to get used to the new rules?