Already have an isa! How do i .......

Sandy_Beech

Hi,

I already have an isa, the question is i want to start this isa below,

The Barclays Instant Access Tax Haven ISA pays a huge 6.5% AER on all balances from £1. It’s only available in branches, unless you’re an existing Barclays customer in which case you can get it online too. The rate includes an introductory 1% bonus lasting a year; meaning it’ll plummet after that, thus it’s best for people who are willing to do a Transfer then to keep the rate high.

Rate: 6.5% variable AER (inc. 1% 12 month bonus). Min. Deposit: £1. Last 2007/8 Deposit Date: Branch 4 April. Allows transfers from previous years ISAs?: No, new money only


I don't want to transfer, AND i do have new Money.... To put in.. BUT i have an isa and this closes on the 4th April... I can't start a new one till the 6th APRIL OR can I ???????????????????????????????

Help PLs...


Kind Thanks...

Sandy (very cold beech)

Mikeyorks

Sandy_Beech wrote: »

I can't start a new one till the 6th APRIL OR can I

You can if you haven't put any money into your existing ISA since 6.4.07 .... you can't otherwise. If you still have only part of your £3k allowance left (07-08) you'll have to pay that into the existing ISA ..... as you can't (despite suggesting otherwise in one place) transfer into the Barclays one.

sonicshelly

Similar sort of question, a friend has an ISA but asked if she could start another one as was told no. So is there a time frame as advised above, because I don't think she has used her current one for some time. Cheers

Crabman

sonicshelly wrote: »

Similar sort of question, a friend has an ISA but asked if she could start another one as was told no. So is there a time frame as advised above, because I don't think she has used her current one for some time. Cheers

Mikeyorks has it spot on - if any money has been paid into an ISA during this tax year then you can only pay into that same one until the new tax year. If your friend hasn't used the full £3000 allowance then simply top it up.

Once that's done, it is possible to transfer to a different provider if the interest rate isn't good enough (see Cash ISA Transfers article).

From 6 April 2008 she'd be clear to open a new ISA with Barclays as that would be a new tax year

Linda_Secker

I'm in similar position to Sandy. I have an ISA which I don't want to transfer, but I do want to open one with a better rate. I only have about 1200 in the old one, and can only put about 1200 a year away - nowhere near the maximum.

What I can't get my head round is if you can't pay into 2 ISAs in one year, i don't know how to go about changing things... As I understand it, I can't open a new ISA until after 6 April, but a monthly Direct Debit payment will go into my old ISA somewhere between 5-7 April.

So should I cancel the Direct Debit into my old ISA now, and then start a new DD for a new ISA once I've opened it? or is there a less convoluted way of doing this? I definately don't want to transfer the funds out of the existing ISA

Regards
Linda

Mikeyorks

Linda_Secker wrote: »

So should I cancel the Direct Debit into my old ISA now, and then start a new DD for a new ISA once I've opened it? or is there a less convoluted way of doing this? I definately don't want to transfer the funds out of the existing ISA

As soon as you pay money into your 'old' ISA after 5.4.08 ..... that's it, you're tied to it for the rest of the year (as you decline to transfer it).

So to achieve what you want - you need to kill the DD now. Then set up the new ISA after 5th April and re-establish a DD / SO aimed at the new one? But as the new one will be 'a better rate' ..... do re-consider transferring the old one to it? As you make it sound to be a choice rather than that the new one won't accept transfers in?

Linda_Secker

Thanks for that, Mikeyorks, will get on to it today;) BTW, the reason I don't want to transfer the original ISA is that it is with an 'ethical' bank and I like to think of some small part of my savings actually doing some good rahter than being invested in arms and the like:eek:

Regards
Linda