using overdraw for mini cash isa

magali

I have an Halifax current account and am thinking about using my £3000 overdraw allowed to top up my ISA Halifax before the end of the tax year.
After the interest goes in I will put the money back in the current account.

Sound to good to be possible :beer: any idea if it is possible?

KiKi

If you haven't used your ISA allowance this year, then yes, you can add £3000 to it. However, the interest gained before April 5th is going to be negligible - £11 at most with a good rate of 6.5%ish.

It will be even more negligible if you have to pay interest on the overdraft.

KiKi

Mikeyorks

What rate will Halifax charge you on the overdraft? Unless it's less than 5% ... you're going to lose money doing what you propose. Halifax variable ISAs are at best 5.25% at the moment.

bristolleedsfan

magali wrote: »

I.

Sound to good to be possible :beer:

If it "sounds to good to be possible " it usually is. :rotfl: :rotfl: :rotfl: :rotfl:

kipwilliams

magali wrote: »

I have an Halifax current account and am thinking about using my £3000 overdraw allowed to top up my ISA Halifax before the end of the tax year.
After the interest goes in I will put the money back in the current account.

Sound to good to be possible :beer: any idea if it is possible?

sounds like you think that putting £3k in for a month or so will get you the full year's interest, then you intend to pay off the overdraft with the same £3k and pocket the difference?

the interest will be calculated on a daily basis, so you'd end up with approx £15 a month, or 50p a day back on £3k.