When should I open a new ISA

Steffan

I currently have an ISA with Halifax with the full £3k invested. When should I open a new ISA account for the next tax year?

Am I right in thinking you can open a new ISA every year, so you can build up your tax free allowance?

Crabman

Assuming you've used this year's allowance you could visit Barclays to open their 6.5% ISA account (they're accepting money now for the tax year beginning 6 April 2008) with up to £3600.

You're right in thinking you can pay into one ISA per year to maximise the tax benefits of ISAs.

alternate

It is one per year - right?

Do you happen to know what this clause means (taken from the Barclays application) and is is standard?

"I apply to subscribe for a cash ISA for tax year 2008/2009 and each subsequent year until further notice."

makes it sound auto-renewing

jem16

alternate wrote: »

It is one per year - right?

Do you happen to know what this clause means (taken from the Barclays application) and is is standard?

"I apply to subscribe for a cash ISA for tax year 2008/2009 and each subsequent year until further notice."

makes it sound auto-renewing

It is in a sort of way.

It simply means that in the new tax year you can add to your exisiting ISA without going through the application process again if you want to. It doesn't mean you have to.

Steffan

Crabman wrote: »

Assuming you've used this year's allowance you could visit Barclays to open their 6.5% ISA account (they're accepting money now for the tax year beginning 6 April 2008) with up to £3600.

You're right in thinking you can pay into one ISA per year to maximise the tax benefits of ISAs.

When you say accepting money now, do you mean the money would come out of my account now but not earn interest until 6th April, or would it be transferred on the 6th April?

Crabman

Steffan wrote: »

When you say accepting money now, do you mean the money would come out of my account now but not earn interest until 6th April, or would it be transferred on the 6th April?

It'll only earn interest from 6th April (this is what I was told by the guy who opened my account at the branch) so it's better to leave it in a savings account till the new tax year if this is the case.

Not sure when they'll cash the cheque for next year - it'd be safest to ask them directly (0800 400 100). I opened an account over a week ago for which the cheque still hasn't been cashed though I think that's due to the backlog of new accounts being opened.

Lokolo

When you opened your account at the branch what did they need of you? Drivers liscence? NI #? Bills to prove house?

Thanks, just rather go in prepared hehe

Meltdown_2

jem16 wrote: »

It simply means that in the new tax year you can add to your exisiting ISA without going through the application process again if you want to. It doesn't mean you have to.

But it doesn't actually say that, does it...
Of course I agree with your interpretation of the practical effect, jem.
I just get irritated when people turn out 'garbage' wording on documents that they can mull over for months before releasing it onto the public.

For example, if they had just said (for example) :
"I apply to subscribe for this cash ISA for tax year 2008/2009 and then if I should wish to do so at the time, in each subsequent year until further notice."
then alternate wouldn't have had to ask for clarification.
Whether you "wish to do so at the time" will of course be indicated by whether you give the bank your money.

Crabman

Lokolo wrote: »

When you opened your account at the branch what did they need of you? Drivers liscence? NI #? Bills to prove house?

Thanks, just rather go in prepared hehe

I took passport (proof of ID, also accept driving licence) and a bank statement (proof of address, also accept utility bill) which was fine - they took a copy of both documents.

Trying_to_be_good

I already have a Barclays account as I have a Woolwich mortgage - just managed to open my Tax Haven ISA for 08/09 over the phone, they will take the £3,600 from the current account associated with the mortgage, on 6 April or shortly after. The lady I spoke to 'guessed' that the 1% bonus couldn't apply until the 15th day (end of the cooling off period).

alternate

thx jem - it is confusing language.