My ISA situation - advice appreciated

altyfc

Hello there

Forgive me for not knowing an awful lot about this subject. I hope my questions aren't stupid!

I got an ISA for the first time just over 12 months ago, just before the tax year started. I got the Barclays ISA and put £3k in just before the 5th April and £3k immediately after. I am assuming they no longer offer the best deal and I should be moving this £6k and a bit somewhere else. Is this right, and where would I be better off moving it?

I also understand there are shares-based ISAs where you can invest more than £3k. If in this tax year, I have already invested £3k in a cash ISA, is that all I can do? Or could I be investing more in a different kind of ISA before the tax year ends?

With the new tax year, if I invest a further £3k, does that have to be in the same account? Or can I have more than one ISA account?

Can I have a cash ISA and a shares ISA?

I see a shares-based ISA as being an advantage because you can invest more, although there are of course greater potential risks. Is this a fair summary?

Thanks for all your help, and sorry to ask so many questions!

Red_Cat

I got an ISA for the first time just over 12 months ago, just before the tax year started. I got the Barclays ISA and put £3k in just before the 5th April and £3k immediately after. I am assuming they no longer offer the best deal and I should be moving this £6k and a bit somewhere else. Is this right, and where would I be better off moving it?
Yes, you can transfer the Cash ISAs, but whetever you do, DO NOT WITHDRAW THE MONEY YOURSELF! otherwise it will lose it tax free interest status. To transfer, you need to contact wherever it is you are moving the money to and Barclays. The new bank or BS will probably manage the transfer for you. To find a good place to deposit the money, look at best buy tables, but beware of short term offers such as bonus interest.

I also understand there are shares-based ISAs where you can invest more than £3k. If in this tax year, I have already invested £3k in a cash ISA, is that all I can do? Or could I be investing more in a different kind of ISA before the tax year ends?
This tax year (2007-08) on top of £3K in a cash ISA you can put in up to £4K in a "stocks and shares" ISA.

With the new tax year, if I invest a further £3k, does that have to be in the same account? Or can I have more than one ISA account?
You can have more than one account in different places. Just one per tax year. For 2008-09, the max in total is £7200 and the cash element is £3200. You will also be allowed to move past cash ISAs into equity ISAs (but not vive versa).

Can I have a cash ISA and a shares ISA?
Yes.

I see a shares-based ISA as being an advantage because you can invest more, although there are of course greater potential risks. Is this a fair summary?
Depends on your attitude to risk, but over the longer term, you might expect an equity investment to perform better than a cash savings account*

I am not a professional financial advisor, so this is purely my understanding of ISAs and not advice.

Regards

Red Cat

*subject to where the investment is made, economic conditions etc. and the past as always is no guide to the future!

jem16

Red_Cat wrote: »

You can have more than one account in different places. Just one per tax year. For 2008-09, the max in total is £7200 and the cash element is £3200.

Cash element is up to £3600.

altyfc

Thank you, that's been really helpful. Much appreciated.

Any advice as to who I might be best transferring to?

Toastie

altyfc wrote: »

Thank you, that's been really helpful. Much appreciated.

Any advice as to who I might be best transferring to?

Icesave is the top clean (no bonus) ISA, however there deadline for money transfers is April 1st (they take a few days to set up a DD or cheque how ever it is transfered)

You are probably best off looking at your local branches at the minute, all the online accounts won't be able to set up a DD or recieve a Cheque in time.

talana

I see a shares-based ISA as being an advantage because you can invest more, although there are of course greater potential risks. Is this a fair summary?

Just to clarify a wee bit, it is of course a stocks AND shares ISA.
So depending on your attitude to risk, you can hold other investments in there than equities. I'm not big on risk, so I have bonds and gilts.

Just another thing to consider.

Red_Cat

You can always put your Equity ISA money in a cash park. This is when a investment company like Fidelity let you put the money in cash temporarily until you decide which funds you want to invest in. You get interest (about 4.85 percent) but the interest is taxed.

http://www.fidelity.co.uk/adviserclient/guide/isas/isa_cash_park.html