LGPS OAP & ISA ?

RULAST

Yes I'm trying to soak it all in.

Irrespective of yesterday's Cash ISA Saver account I think you're saying I can ALSO open another Cash ISA Saver with someone else in 24/25 later in April and able to keep both running plus make cash deposits and withdrawals from each (to my normal bank account) if I want to?.
Wouldn't transfer MONEYS between the 2 ISAs but might transfer in and out to either or both when I want(to/from my bank etc).
I was just worried that both would be Cash ISA Saver's but you suggest that's fine??. 

xylophone

I think you're saying I can ALSO open another Cash ISA Saver with someone else in 24/25 later in April and able to keep both running plus make cash deposits and withdrawals from each (to my normal bank account) if I want to?.

No, I did not say this.

You can keep your current  cash ISA  (a) open.

On 6 April, you have a new ISA allowance of £20,000.

The new rules permit you to use the whole £20,000 to  subscribe to (a) or to leave (a) as it is and subscribe the whole new allowance to a cash ISA with another provider or to split the allowance between several providers.


Note however what I said about consulting the terms and conditions of each provider and what is said in the Government guidance previously cited.

1.2 Allow subscriptions to multiple ISAs of the same type, except for Lifetime ISA and Junior ISA

This change is not mandatory, and managers can choose to limit subscriptions to only one ISA held with them in any tax year. 

This removes the restriction on subscribing to only one ISA of each type per year, however all subscriptions must remain within the overall ISA subscription limit of £20,000. 

 

With regard to simply moving money in and out of ISAs yourself, this would be an unwise move unless using a flexible ISA.

Let's say  on 6 April you open a non - flexible ISA and subscribe £20,000.   You decide that you need to use £5000 of that money to pay for a new car.

You cannot then "pay back"  the £5000 into that ISA in the tax year 2024/5.

However, had that ISA been flexible, you could "pay back" £5000 into that ISA within the tax year 2024/5.

If you want to simplify your life, you might find it easier just to open a flexible cash  ISA with a new provider on 6 April and pay in and out as  permitted within the rules?

Example

https://www.principality.co.uk/en/savings-accounts/isas/Online-ISA

RULAST

OK your suggestion ref simplifying my life sounds a good one. As I had said earlier, perhaps I shouldn't have jumped in yesterday and opened that other one. I now realise there are better ones but feel a fool to close it so soon. I prefer to find a more suitable one April 7th and use that one. Hope this sounds best. I will checkout your links. You've been so helpful. If I find a new one I will tell them about the yesterday one and if not allowed to have new one I'm sure they will tell me do you think?. I hope so...

RULAST

xylophone said:

I think you're saying I can ALSO open another Cash ISA Saver with someone else in 24/25 later in April and able to keep both running plus make cash deposits and withdrawals from each (to my normal bank account) if I want to?.

No, I did not say this.

You can keep your current  cash ISA  (a) open.

On 6 April, you have a new ISA allowance of £20,000.

The new rules permit you to use the whole £20,000 to  subscribe to (a) or to leave (a) as it is and subscribe the whole new allowance to a cash ISA with another provider or to split the allowance between several providers.


Note however what I said about consulting the terms and conditions of each provider and what is said in the Government guidance previously cited.

1.2 Allow subscriptions to multiple ISAs of the same type, except for Lifetime ISA and Junior ISA

This change is not mandatory, and managers can choose to limit subscriptions to only one ISA held with them in any tax year. 

This removes the restriction on subscribing to only one ISA of each type per year, however all subscriptions must remain within the overall ISA subscription limit of £20,000. 

 

With regard to simply moving money in and out of ISAs yourself, this would be an unwise move unless using a flexible ISA.

Let's say  on 6 April you open a non - flexible ISA and subscribe £20,000.   You decide that you need to use £5000 of that money to pay for a new car.

You cannot then "pay back"  the £5000 into that ISA in the tax year 2024/5.

However, had that ISA been flexible, you could "pay back" £5000 into that ISA within the tax year 2024/5.

If you want to simplify your life, you might find it easier just to open a flexible cash  ISA with a new provider on 6 April and pay in and out as  permitted within the rules?

Example

https://www.principality.co.uk/en/savings-accounts/isas/Online-ISA

Is the principality onea decent for my needs ref Apr etc?

xylophone

is the principality onea decent for my needs ref Apr etc?

You need to read the terms and conditions of the account.

You can also check on what Coventry BS has to offer in  flexible easy access, Yorkshire BS in flexible variable rates, Skipton in  flexible easy  access.....

RULAST

xylophone said:

is the principality onea decent for my needs ref Apr etc?

You need to read the terms and conditions of the account.

You can also check on what Coventry BS has to offer in  flexible easy access, Yorkshire BS in flexible variable rates, Skipton in  flexible easy  access.....

Thanks I will careful read 👍

RULAST

April 2nd...

Hello xylophone, from my initial posting words, the older family member I mentioned at the onset of this post was grateful for the clarification given in this posting and will likely now discuss mid this week with their bank; who they prefer to look at options with. Their situation is to look for a reasonable APR % that doesnt need instant access options and they would transfer some LGPS Lump Sum in to. They might even transfer some small cash amounts in to it over the 24/25 year and similarly not drawing any amounts out in 24/25. Im pleased we have been able to collectively help/advise them. Thankyou's to yourself and everyone commenting.

Regarding my 'different' situation, its that I got interested in ISA's over the weekend, as a result of the discussions and your high valued input.

For myself (its somewhat different as mentioned). As you know I knee jerked and opened a Flexible Cash ISA (with my current bank) over the weekend; and put £1 in to it to enable it to be opened. Anyway as you have suggested I can perhaps leave that open and standalone throughout the 24/25 year with £1 in it. The reason I did open it is because i have a little savers account with my bank that pays around 1.5% APR and depends on what money I put in to it or similarly draw on it for unforseen bills such as car repair/service/roof leak and so on. It has to pay tax on any annualy APR profit.

As a pensioned i thought wouldnt it be nice if I could actually improve on the above little (non ISA) account and get a comparable or hopefully better APR and no tax option which is why I jerked to open the one at weekend. The mode of this ISA would be similar in terms of access for service/home fixes etc should the need rise in 24/25 plus even the mode to put some in if the piggy bank looks healthy.

I think you are saying its clear I should go for the 'Flexible Cash ISA' route and i think I dont need to open another one now until 24/25 (the knee jerk was a 'Flexible Cash' also in fact) and i should read in to the suggested Principality, Coventry BS, Yorkshire BS, Skipton regarding their Flexible Cash ISA's for 24/25.

Leaving the knee jerk one open with a £1 in it can just stay there as was opened 23/24 as you suggest. I dont want to look a lemon by asking bank to close it today etc!.

Does all the above seem ok now?

THANKYOU as always..

RULAST

RULAST said:

xylophone said:

I think you're saying I can ALSO open another Cash ISA Saver with someone else in 24/25 later in April and able to keep both running plus make cash deposits and withdrawals from each (to my normal bank account) if I want to?.

No, I did not say this.

You can keep your current  cash ISA  (a) open.

On 6 April, you have a new ISA allowance of £20,000.

The new rules permit you to use the whole £20,000 to  subscribe to (a) or to leave (a) as it is and subscribe the whole new allowance to a cash ISA with another provider or to split the allowance between several providers.


Note however what I said about consulting the terms and conditions of each provider and what is said in the Government guidance previously cited.

1.2 Allow subscriptions to multiple ISAs of the same type, except for Lifetime ISA and Junior ISA

This change is not mandatory, and managers can choose to limit subscriptions to only one ISA held with them in any tax year. 

This removes the restriction on subscribing to only one ISA of each type per year, however all subscriptions must remain within the overall ISA subscription limit of £20,000. 

 

With regard to simply moving money in and out of ISAs yourself, this would be an unwise move unless using a flexible ISA.

Let's say  on 6 April you open a non - flexible ISA and subscribe £20,000.   You decide that you need to use £5000 of that money to pay for a new car.

You cannot then "pay back"  the £5000 into that ISA in the tax year 2024/5.

However, had that ISA been flexible, you could "pay back" £5000 into that ISA within the tax year 2024/5.

If you want to simplify your life, you might find it easier just to open a flexible cash  ISA with a new provider on 6 April and pay in and out as  permitted within the rules?

Example

https://www.principality.co.uk/en/savings-accounts/isas/Online-ISA

Is the principality onea decent for my needs ref Apr etc?

dropped a comment below after thinking over bank hol monday..

Kernowshep

RULAST said:

Older family member soon to be an OAP. They're a part of LGPS pension scheme which by default pays a lump sum at same retirement date as OAP starts. Can I ask if they could transfer some of the small LGPS to a simple ISA or am I right in reading that tax free lump sums can't go to a tax free ISA (as advertised as 20k tax free per annum already). Similarly can OAPs put bits and bobs of OAP in to little ISA.. or whatever left after rising cost shopping and energy costs paid!

If they are still contributing to the LGPS pension, adding funds to a linked AVC would probably make sense (especially if done via salary sacrifice), the contributions would be tax free, then be able to be added to the tax free lump sum.
https://www.lgpsmember.org/your-pension/paying-in/paying-more/

xylophone

You can leave the old ISA as it is.

You can open a new ISA of your choice from 6 April.

With regard to the elderly relative, his bank might not offer the best rate on an ISA.