The Old Regular Savers Discussion Thread 28/12/24-29/1/26

s71hj

Did I read something on here about an option to withdraw full balance from RBS and Natwest Digital Regular saver and subsequently pay same amount back in as long as you do so in the same month, or did I dream it! It would be useful to max out my ISA allowance pre end of tax year as I have a temporary cash flow problem!

flaneurs_lobster

s71hj said:

Did I read something on here about an option to withdraw full balance from RBS and Natwest Digital Regular saver and subsequently pay same amount back in as long as you do so in the same month, or did I dream it! It would be useful to max out my ISA allowance pre end of tax year as I have a temporary cash flow problem!

I'm being thick.

Why?

subjecttocontract

flaneurs_lobster said:

s71hj said:

Did I read something on here about an option to withdraw full balance from RBS and Natwest Digital Regular saver and subsequently pay same amount back in as long as you do so in the same month, or did I dream it! It would be useful to max out my ISA allowance pre end of tax year as I have a temporary cash flow problem!

I'm being thick.

Why?

Why?
* Maxing out an isa before tax year end is the last chance to do it.
* Temporary cash flow problem suggests money 'borrowed' from reg savers could be replaced later in April.
Simples.

s71hj

flaneurs_lobster said:

s71hj said:

Did I read something on here about an option to withdraw full balance from RBS and Natwest Digital Regular saver and subsequently pay same amount back in as long as you do so in the same month, or did I dream it! It would be useful to max out my ISA allowance pre end of tax year as I have a temporary cash flow problem!

I'm being thick.

Why?

So I could get my ISA allowance up to the £20000 limit in this tax year which makes sense in the longer term for my situation. I have a 90 day account maturing on the 10th but that money would be too late for this tax year 

friolento

flaneurs_lobster said:

s71hj said:

Did I read something on here about an option to withdraw full balance from RBS and Natwest Digital Regular saver and subsequently pay same amount back in as long as you do so in the same month, or did I dream it! It would be useful to max out my ISA allowance pre end of tax year as I have a temporary cash flow problem!

I'm being thick.

Why?

To bridge a temporary cash flow problem. E.g. you’re £5k short of your 2024-25 ISA allowance and have no spare funds but will have £5k coming in from somewhere later in April, after April 5. So you use your £5k from the Natwest RS for the ISA today, and then top up the RS again with the new money later in April. That is, if it is actually possible to replace the RS funds as has been claimed - I have not tried this myself so cannot confirm it works 

flaneurs_lobster

subjecttocontract said:

Why?
* Maxing out an isa before tax year end is the last chance to do it.
* Temporary cash flow problem suggests money 'borrowed' from reg savers could be replaced later in April.
Simples.

s71hj said:

So I could get my ISA allowance up to the £20000 limit in this tax year which makes sense in the longer term for my situation. I have a 90 day account maturing on the 10th but that money would be too late for this tax year 

I understand the mechanism, just not seeing the underlying reason in meaningful financial advantage terms.

Is it not moving £10k earning 6% to ISA(s) earning something similar albeit tax-free for a few days? The increase in earnings will be what? A tenner?

subjecttocontract

flaneurs_lobster said:

subjecttocontract said:

Why?
* Maxing out an isa before tax year end is the last chance to do it.
* Temporary cash flow problem suggests money 'borrowed' from reg savers could be replaced later in April.
Simples.

s71hj said:

So I could get my ISA allowance up to the £20000 limit in this tax year which makes sense in the longer term for my situation. I have a 90 day account maturing on the 10th but that money would be too late for this tax year 

I understand the mechanism, just not seeing the underlying reason in meaningful financial advantage terms.

Is it not moving £10k earning 6% to ISA(s) earning something similar albeit tax-free for a few days? The increase in earnings will be what? A tenner?

Well I have maxed out my ISAs every year for at least the past 10-15 years to my financial advantage and will likely continue to do so. It's resulted in obvious increased tax free interest thats far more than a tenner. You need to look at the long game.

What_time_is_it

flaneurs_lobster said:

subjecttocontract said:

Why?
* Maxing out an isa before tax year end is the last chance to do it.
* Temporary cash flow problem suggests money 'borrowed' from reg savers could be replaced later in April.
Simples.

s71hj said:

So I could get my ISA allowance up to the £20000 limit in this tax year which makes sense in the longer term for my situation. I have a 90 day account maturing on the 10th but that money would be too late for this tax year 

I understand the mechanism, just not seeing the underlying reason in meaningful financial advantage terms.

Is it not moving £10k earning 6% to ISA(s) earning something similar albeit tax-free for a few days? The increase in earnings will be what? A tenner?

flaneurs_lobster said:

subjecttocontract said:

Why?
* Maxing out an isa before tax year end is the last chance to do it.
* Temporary cash flow problem suggests money 'borrowed' from reg savers could be replaced later in April.
Simples.

s71hj said:

So I could get my ISA allowance up to the £20000 limit in this tax year which makes sense in the longer term for my situation. I have a 90 day account maturing on the 10th but that money would be too late for this tax year 

I understand the mechanism, just not seeing the underlying reason in meaningful financial advantage terms.

Is it not moving £10k earning 6% to ISA(s) earning something similar albeit tax-free for a few days? The increase in earnings will be what? A tenner?

I think you are maybe thinking of it in terms of having a fixed sum of money, and ignoring the possibility that more money will be available to put into ISAs and savings in future years. The long term effect of building up an ISA is that you effectively have a larger “lifetime” allowance available in future years. The cumulative effect of this could be quite large.

flaneurs_lobster

subjecttocontract said:

flaneurs_lobster said:

subjecttocontract said:

Why?
* Maxing out an isa before tax year end is the last chance to do it.
* Temporary cash flow problem suggests money 'borrowed' from reg savers could be replaced later in April.
Simples.

s71hj said:

So I could get my ISA allowance up to the £20000 limit in this tax year which makes sense in the longer term for my situation. I have a 90 day account maturing on the 10th but that money would be too late for this tax year 

I understand the mechanism, just not seeing the underlying reason in meaningful financial advantage terms.

Is it not moving £10k earning 6% to ISA(s) earning something similar albeit tax-free for a few days? The increase in earnings will be what? A tenner?

Well I have maxed out my ISAs every year for at least the past 10-15 years to my financial advantage and will likely continue to do so. It's resulted in obvious increased tax free interest thats far more than a tenner. You need to look at the long game.

Ah thank-you, the mist has lifted. The maxed-out allowance continues earning for the foreseeable, it's not just a short-term loan to the ISA from the RS.

wmb194

s71hj said:

Did I read something on here about an option to withdraw full balance from RBS and Natwest Digital Regular saver and subsequently pay same amount back in as long as you do so in the same month, or did I dream it! It would be useful to max out my ISA allowance pre end of tax year as I have a temporary cash flow problem!

Yes, I did this a couple of weeks ago with both my NatWest and RBS RS’ though I left a pound in each to be safe. All returned within March and a couple of days ago the interest appeared to be paid correctly.