Best Monthly Interest ISA - ING Direct?

mannitol

Good morning everyone,

If you've had a look at the other threads you'll notice one of the bright sparks of this forum suggested I only pay back my minimum payments on my credit card and store the rest in an ISA - then pay it all back when it's due.

The insurance will run out towards the end of December, which I think is when my 0% balance transfer is also ending.

I don't have a lump sum to invest in an ISA, and used a few links provided to me by another poster. So far, ING Direct seem suitable. But searching this forum leaves me with mixed views - first of all people want to shift their money after the promotional 6 months. I can run the ISA with all of my deposited money until December, then pay back what I owe on the CC. Is it worth moving ISA after the 6 months? I am looking at investing into an ISA 'properly' aswell i.e. I won't withdraw the dosh to pay off a bill after a year.

I don't think I will fund ICEsave just yet - so is Egg the next best one to go for? Obviously I'll need to make sure I can transfer money into the next ISA - as I will be depositing money to pay of the CC and then some extra money for saving. I have a sneaky suspicion Egg don't allow transfers in..

I could start with a yearly ISA - but if I take a chunk of money out after 10 months, this will surely affect the amount of interest generated in the full year?

Cheers

McSaver

The ING Direct ISA is only worth depositing in for 6 months due to the promotion rate then its worth transfering out. Icesave currently have the best monthly paying ISA @ 6.1%

EGG dont allow transfers in and they pay interest annually.

Lavendyr

Not sure why you don't want to fund Icesave as it is currently one of the top monthly payers and allows transfers in? If you're worried about Icelandic banks, I really wouldn't be...

thumshie

mannitol wrote: »

I could start with a yearly ISA - but if I take a chunk of money out after 10 months, this will surely affect the amount of interest generated in the full year?

While interest is only paid annually, it's normally calculated daily, so you don't loose out, it's just you don't get your hands on it until the end of the year..

Lavendyr - I assume the reason the OP is ruling out icesave is he doesn't have a 'lump sum' of £1000, and transfers in are irrelevant if you don't already have an Isa...

mannitol

Thumshie - you hit the nail on the head. I don't have the £1000 required to open an account, otherwise I would definitely do that!

So I would get 10 months interest on X amount, then 2 months on Y amount after I withdrew the funds needed to pay my outstanding balance. However some ISA's are funny about withdrawing funds more than once a year.

If it is wise to use ING for only 6 months, who should I then transfer to?

thumshie

mannitol wrote: »

So I would get 10 months interest on X amount, then 2 months on Y amount after I withdrew the funds needed to pay my outstanding balance. However some ISA's are funny about withdrawing funds more than once a year.

Correct on how the interest would be done.. You'll just have to make sure you don't restrict your isa to one that allows no withdrawls...

mannitol wrote: »

If it is wise to use ING for only 6 months, who should I then transfer to?

I don't know what will be available in 6 months but if you can put £166.66 a month aside, after 6 months you'd have £1000(Plus accrued interest) to open - hmmm - Icesave

mannitol

thumsie - It may only be about £100, but if the remainder is low enough I hope to open an Icesave account

Thanks for the help!!

Lavendyr

Ah, got you, sorry

mannitol

"The original or a certified copy of either your latest Inland Revenue notice of coding, tax assessment, or letter confirming the right to benefits or state pension."

A what now?

thumshie

mannitol wrote: »

"The original or a certified copy of either your latest Inland Revenue notice of coding, tax assessment, or letter confirming the right to benefits or state pension."

A what now?

it's the P2 document from HMRC:
http://www.hmrc.gov.uk/p2/index.htm
sample letter: http://www.hmrc.gov.uk/p2/p2.pdf

Every year(around about now anyway) the tax man sends you a letter telling you what your tax code for the following year is, depending on if you've underpaid/overpaid and any allowances you have. You should under stand your tax code anyway, info here:
http://www.hmrc.gov.uk/pensioners/understandingyourtax.htm

The last two(tax assessment/benefits letter) your less likely to have.....

mannitol

I don't have a P2 Document. Apparently I was incorrectly taxed and had a nice little rebate when I started my current job last year. I was on PAYE then they assigned me a tax code. I never received anything from HMRC like the P2 - would this have gone to my boss if they put my address down as theirs?