Cash ISA - stupid question perhaps

kyorin

Trading 212 offer a good (promotional) rate on their cash ISA currently. My question is: If I pay in say £20,000 now, and then in the new financial year, pay in another £20,000, will the whole sum benefit from the 12 month promo? It's not 100% clear to me.

jifmoose

Yep that's the way it works. You only don't get the promo if you do a formal transfer in from a different ISA - new payments within the ISA limit will get the full rate of interest.

poseidon1

This promotion?

https://www.independent.co.uk/deals/trading-212-cash-isa-offer-b2791493.html

Looks self explanatory to me.

Chaykin

See red underlining.

jifmoose

Hmm yes that is a little ambiguous. I took "current tax year" to be a rolling definition - reading the Promo rate terms seems to back that up:

3.4. When the tax year changes, the definition of “Current Tax Year” will updateautomatically. The Promo Rate applies only to amounts deposited or transferredduring the new Current Tax Year and will not retroactively apply to contributions ortransfers made in previous tax years.

The key thing being that it doesn't apply to subscriptions transferred from older tax years. Could be wrong though?

MeteredOut

Although its not 100% clear if "current tax year" means current at the time of account opening, or current at the time of funds deposit, I do suspect it means the latter,

EDIT: And the 3.4 t&c posted above seems to indicate that oo

kyorin

https://forums.moneysavingexpert.com/discussion/comment/81910328#Comment_81910328

Thank you for that.

So the question becomes, should I just dump £20k in to whatever has the best rate now and/or likely best ongoing rate, and then dump the other £20k into the whatever the best one is at the start of the next tax year?

jimjames

That would seem to suggest that come the new tax year the previous contributions won't get the bonus which wouldn't follow how I expect it to work

MeteredOut

https://forums.moneysavingexpert.com/discussion/comment/81910358#Comment_81910358

That's not how i read 3.4. I read it as saying that contributions in the "current tax year" when the bonus is active will attract the bonus, and the "currrent tax year" rolls forward, but that any prior years (or transfers in) won't get it.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81910356#Comment_81910356

When the new tax year starts, suggest you see what T212 cash ISA website page says then. Plus of course compare what is on offer from other providers.

friolento

https://forums.moneysavingexpert.com/discussion/comment/81910356#Comment_81910356

Some ISA providers pay a lower interest rates for transfers-in. Double check T212 isn't one of them if you are contemplating an ISA transfer