The Top Regular Savers Discussion Thread

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.

s71hj

wmb194 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!

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.

Did this include money that had gone in from rewards?

pecunianonolet

Apply for a loan, fill up a flexible ISA and the next day to take it out from the ISA and repay the loan. The money technically only has to stay in an ISA for one night. Or, if you have, use a money transfer offer on a credit card. It may cost you some fees and/or interest but the longer term gain of protecting the ISA allowance will outstrip that cost. 

Taking funds out of reg savers is of course the easiest approach and I would value the ISA allowance always above everything else because you never know for how long ISA's stay in the current form as they are or what happens to taxes, etc. 

wiseonesomeofthetime

s71hj said:

wmb194 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!

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.

Did this include money that had gone in from rewards?

Certain Nationwide accounts would let you withdraw and replace money in the same month, providing the balance at the end of the month did not increase by the maximum allowed for the account.

Do NatWest and RBS Digital Savers work on the same principle?

As long as balance does not increase by more than £150 for deposited money (i.e. not rewards as they are internally transferred in), then it is fine.

wmb194

s71hj said:

wmb194 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!

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.

Did this include money that had gone in from rewards?

Yes, it did, and previously earned interest.

surreysaver

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've got a flexible ISA and a flexible mortgage. Take money out of the flexible mortgage this week, put it into the flexible ISA and move the money back next week.
It allows me to max my ISA every tax year and carry that allowance over, so when I've got the cash it allows me to earn interest tax free

s71hj

surreysaver 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?

I've got a flexible ISA and a flexible mortgage. Take money out of the flexible mortgage this week, put it into the flexible ISA and move the money back next week.
It allows me to max my ISA every tax year and carry that allowance over, so when I've got the cash it allows me to earn interest tax free

So can money be put in say today up to the 20000 max for this tax year, then withdrawn and does that secure that as isa allowance I could put money in in a subsequent tax year in excess of that tax year's £20000?

wiseonesomeofthetime

s71hj said:

surreysaver 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?

I've got a flexible ISA and a flexible mortgage. Take money out of the flexible mortgage this week, put it into the flexible ISA and move the money back next week.
It allows me to max my ISA every tax year and carry that allowance over, so when I've got the cash it allows me to earn interest tax free

So can money be put in say today up to the 20000 max for this tax year, then withdrawn and does that secure that as isa allowance I could put money in in a subsequent tax year in excess of that tax year's £20000?

If it is a flexible ISA then you can withdraw money and replace it in the same ISA and in the same tax year without it affecting your £20,000 new money allowance.

If you top up today, and withdraw today, then you will not have that bridge for 2025/26 to replace the withdrawn funds as the transactions are in different tax years.

Hope that makes sense.

pecunianonolet

s71hj said:

surreysaver 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?

I've got a flexible ISA and a flexible mortgage. Take money out of the flexible mortgage this week, put it into the flexible ISA and move the money back next week.
It allows me to max my ISA every tax year and carry that allowance over, so when I've got the cash it allows me to earn interest tax free

So can money be put in say today up to the 20000 max for this tax year, then withdrawn and does that secure that as isa allowance I could put money in in a subsequent tax year in excess of that tax year's £20000?

Yes, but the ISA must be flexible. You can put 20k in today and take it back out on Sunday (you have to leave a minimum behind as minimum account balance with most).

You can now from 6th April 25 until 5th April 26 replenish the 20k from this tax year and fill up with another 20k allowance you have again from Sunday.  

So your balance on 5th April 26 would need to be 40k plus any interest you received. If you not put the full 40k back in you would give up some of the allowance. 

Best to discuss ISA related questions here: https://forums.moneysavingexpert.com/discussion/401374/cash-isas-the-best-currently-available-list/p858