UBLUK ISA and question

HowDoYouInvest

Hi, I was going to open the suggested (by MSE) UBLUK ISA. I put in details, and the it states that it doesn't compound interest! I think someone needs to put that on the website!
I was thinking about putting in some funds before the end of the tax year (I still have my full 2024-25 £20k ISA allowance to use in the next couple of days) and then after April 5th, move in a matured ISA from a different provider. Though the would mature a few days apart, I believe this would be fine?

eskbanker

HowDoYouInvest said:

Hi, I was going to open the suggested (by MSE) UBLUK ISA. I put in details, and the it states that it doesn't compound interest! I think someone needs to put that on the website!

Agreed - I'm sure they've included wording for that before, not that that's much consolation this time round.

HowDoYouInvest said:

I was thinking about putting in some funds before the end of the tax year (I still have my full 2024-25 £20k ISA allowance to use in the next couple of days) and then after April 5th, move in a matured ISA from a different provider. Though the would mature a few days apart, I believe this would be fine?

Not sure what you mean by maturing a few days apart - if you deposit and transfer separately into the ISA, then there'll still just be one maturity date?

HowDoYouInvest

Thanks for your comments. Regarding the ISAs. I meant say, invest £20k in an ISA in March (using that years allowance) then (using the following year's allowance) transfer another £20k in April. 
Same calendar year, but either side of the ISA year end and new start in April.
Thanks!

eskbanker

HowDoYouInvest said:

Thanks for your comments. Regarding the ISAs. I meant say, invest £20k in an ISA in March (using that years allowance) then (using the following year's allowance) transfer another £20k in April. 
Same calendar year, but either side of the ISA year end and new start in April.
Thanks!

If you're talking about one ISA to accept both a deposit and a transfer then it'll just be one maturity date, but if you're opening two separate ISAs at different times then that would be a different scenario....

HowDoYouInvest

Hi, Thanks for the reply- yes I meant one ISA combining the two, so it'll be one maturing date (presumably the latest of the two investment dates) Turns out I can't open some of the ISAs anyway (live in rented house!), so getting a lower rate anyway...  Law of the land, the rich get richer! Thanks again.

t0rt0ise

HowDoYouInvest said:

Hi, Thanks for the reply- yes I meant one ISA combining the two, so it'll be one maturing date (presumably the latest of the two investment dates) Turns out I can't open some of the ISAs anyway (live in rented house!), so getting a lower rate anyway...  Law of the land, the rich get richer! Thanks again.

That's interesting. Which ISA can't you open because you rent?

HowDoYouInvest

I tried the UBL UK ISA and even the Post Office cash ISAs- both weren't able to open ISA accounts for me based on my address, which I can only guess (I am registered here for my bank, my Doctors, etc and have gone through a rental organisation with third-part checks, and for work I am fully DBS checked, for a second time!) is due to renting.

In the end I've gone back to my bank for an ISA. They told me today I can't combine my 2024/25 and a new 25/26 ISA until the end of the calendar year (!) which is news to me. I do wish ISA were more straight forward, because they are not, in my experience, "A cash ISA is just a savings account where you'll never pay tax on the interest" 

eskbanker

HowDoYouInvest said:

I tried the UBL UK ISA and even the Post Office cash ISAs- both weren't able to open ISA accounts for me based on my address, which I can only guess (I am registered here for my bank, my Doctors, etc and have gone through a rental organisation with third-part checks, and for work I am fully DBS checked, for a second time!) is due to renting.

Financial institutions use electronic ID verification services from credit rating agencies, and if those don't give a positive match then the institution will generally request manual verification, e.g. sending copies of proof of address/photo ID, rather than declining an application.  I'm not aware of any visibility of renting versus owning in such checks, although you do typically need to declare this on applications.

HowDoYouInvest said:

In the end I've gone back to my bank for an ISA. They told me today I can't combine my 2024/25 and a new 25/26 ISA until the end of the calendar year (!) which is news to me. I do wish ISA were more straight forward, because they are not, in my experience, "A cash ISA is just a savings account where you'll never pay tax on the interest" 

Customer service advisers in banks often seem to be poorly informed about ISAs, so it'll usually be best to research online rather than asking people who can't be relied on to give accurate information in specialist areas.  There is no calendar year significance for ISAs, unless you have a product maturing around then?

HowDoYouInvest

Thanks for the reply.
Yes, I guessed credit checks were probably partly-used for the ISA sites, so as a renter you tend to fail these checks.
No idea where the 'end of the calendar year' came from (don't have anything maturing then), but I've also been told I would have to set up an ISA in 60 days after the 2024-25 ISA, which I'm not 100% sure is correct.
There was an article I read today about how the UK is more of a cash culture as people feel unsure about investing, suffice to say I think I know why.
I do wish this site had more info (including what actually can happen if you switch banks by closing one) about ISAs in how they work, how dates may overlap, etc and maybe a bit less "ISA- it's like a cake"!

Middle_of_the_Road

HowDoYouInvest said:

I do wish this site had more info (including what actually can happen if you switch banks by closing one) about ISAs in how they work, how dates may overlap, etc and maybe a bit less "ISA- it's like a cake"!

Everything ISA related you might need to know about...

https://www.moneysavingexpert.com/savings/best-cash-isa/

Switching a current account will usually have no effect on an ISA or any other accounts held with your bank.

HowDoYouInvest

Thanks. I have read that page and others on here quite a few times, but still not 100% sure on my above questions, such as compound interest, topping up a ISA during the year within allowance( Seems like I can't top up an ISA that's currently running, just have to open a new one) and whether you can actually use the providers mentioned- or at least the circumstances needed to be able to sign up.