ISA for 2008 / 2009

Riyazi

Hi

I hope this is not a stupid question but I am a bit confused so here goes.

I opened a Mini-Cash ISA with Barclays last year in to which I have paid the £3000 into.

1) When can I open a Mini-cash ISA for the 2008/2009 period ? Do I have to
do this only after the 6th or do I have to open it now but transfer money only after the 6th? The reason for the confusion is all this buzz about the deadline being the 5th of April to open a mini-cash ISA - I take it this is the deadline for opening one for the 2007-2008 period ? (Of course this doesnt make sense again as to why any one would wait until the last moment to open a Mini-Cash ISA as they would have lost out on Interest all this time)

2) Am I right in thinking that Abbey is the best option for me as I will get 6.5% fixed (as opposed to 6.5% variable at A&L) and that I am able to transfer the £3000 from Barclays in to this account ?

3) Once I have opened the ISA account with Abbey and transferred in the Barclays amount - I can add in another £3,600 in to my ISA account and be paid interest on £6,600 ?

4) My wife also had a Tax Beater Cash ISA at Barclays in to which she transferred the full £3000 last year in April. However, somewhere in November she withdrew the full amount out. Now if she opens a new Cash ISA at Abbey can she deposit £3,600 in to the Abbey account and also deposit £3000 in to the Barclays ISA as well ? Or is the 2007/08 allocation lost now that she had withdrawn that amount ?

Hope this all makes sense and someone can help me out

Thanks in advance

Lokolo

1. You can apply now and write a cheque for the 6th April. The banks will start opening on the 7th (6th is a Sunday)

2. Upto you really lol.

3. Yes

4. Allocation is lost, You get a deposit amount of £3000, once you've deposited it you can't put anymore in, even if you do take it out. But from Sunday she can also open an ISA and put £3600 in it.

Mikeyorks

Riyazi wrote: »

When can I open a Mini-cash ISA for the 2008/2009 period ?

As you already have an ISA ..... you don't have to open another one unless you really want to! You ask the question as though you think it's essential to open a fresh one every year .... and it's not. You can simply continue to contribute to the 'old' one and that becomes your 'current' year ISA.

The only time you really have to open a new one each year, is if you open fixed rate ISAs. As you can't normally put other than the opening deposit into those. Or if you're particularly smitten by the rate of a provider who won't accept transfers in?

If neither of those applies .. then just add your 08-09 allowance into your existing ISA ..... but you can then immediately (or more leisurely) transfer that to a different provider if a better rate appeals?

Compound_2

Mikeyorks wrote: »

just add your 08-09 allowance into your existing ISA ..... but you can then immediately (or more leisurely) transfer that to a different provider if a better rate appeals?

What about applying to transfer now then adding £3600 to the closing ISA on 7 April?

Mikeyorks

There's the potential of creating confusion with that? Which I find best avoided in all things to do with ISAs.

Better to add the £3600 on 7/4 and initiate the transfer immediately afterwards? In practical terms - with the chaos of the next few days ..... you won't be losing anything?

caveat_emptor

Beware. Barclays website states that transfers from other ISAs into the Tax Haven ISA is not allowed. So as the interest rate on my existing Barclays ISA is about to reduce by 1% I'll be looking for somewhere else to transfer it to.