Too Late for 07/08 ISA - where can i put my £3000?

scorpio13

It seems that most banks are no longer accepting cash ISA applications for the 2007/08 tax year.
I have £3000 to deposit (still have it in a cr*ppy Abbey Savings account).

Any ideas where i can put my 3 grand to get the best benefits?

Should i still apply for a Cash ISA (for 08/09) or are there any high interest 'savings accounts' which are just as beneficial?

All replies, greatly appreciated.

dunstonh

There is no reason for banks to stop accepting ISA contributions yet. If you intend to use this and next years allowance then just get it into any ISA now so you can transfer it later.

Tony_Kingham

The eSavings accounts seem to be a good place to leave your money.

Abbey have an extra eSavings account which give you extra interest as long as you dont withdraw during a calendar month.

Could be useful?

cheekyweegit

Hiya

Just thought I'd let you know it's not too late for this year to open an ISA. I did it today for my son. It's his first one and we did it at the Royal Bank of Scotland, current rate is 4.5% and rising, but it's a rubbish rate compared to some.

We just did it there as that is where is normal account is and we knew we had no intentions of leaving it there and told the girl so as we're moving it to the Alliance & Leicester on Monday who are paying 6.25% (we are also going into see about a 10% account but I don't have details on that as of yet but might be worth making enquiries about for some).

The advisor at the bank told us we were too late for this year and tried to get us to open it for next year but I told her "no way" the rates are rubbish and we'd walk away and it said online that we could still open one for this year. Funnily enough I noticed a box on her screen which said 07/08 or 08/09 but she never let on until I said. Thankfully I was there with my son or he would've been ripped off (He is only 17).

The good thing about the Alliance & Leicester account is not only the pretty good interest rate, but they let you transfer in unlike others and I've yet to have this confirmed, but it looks like we can take advantage of the £25 recommend a friend scheme :j

They are also advertising in the window, 3 days to go for opening an ISA for this year, so obviously tomorrow will be 2 so it can still be done with a little look around the high street.

I think also Skipton was also advertising that they were still taking ISA's for this year.

Hope this helps and good luck.

BenL

You should be fine opening an ISA in branch on the spot.

You just can't do it online/post/phone due to time restrictions.

I would pop into Abbey and open their 6.25% Direct ISA issue 2 and get them to move your money straight in.

Don't forget a couple of forms or ID and your abbey passbook.

Ben

kcm74

I opened an Alliance & Leicester current account 2 weeks ago online, purely for the benefit of using the 10% ISA they were offering with it. I too have £3,000 ready to put in before 07/08 ends.

I have been given the details for the current account a few days ago, but the ISA mysteriously still has not been processed. I have phoned them every day this week, but just get told the same thing - "We can't help because it's not showing in the system" When I've asked to speak to someone who can do something they tell me there isn't anyone. What do I do? I've told them that I'm going to close the current account, but they don't seem to care...

jamesd

A few years ago I opened my first cash ISA in an Alliance and Leicester branch about an hour before the end of the last day, after phoning to check that they still had application forms available. If you wander around your town you should find somewhere that has one or you should be able to apply online somewhere or print an application form and use that in a branch.

kcm74, you can deposit the money with a different ISA if you wish. In your situation you can completely ignore the no more than one ISA a year rule because you have not yet deposited the money and an ISA does not count as opened until the application has both been accepted and money has been received.

Anyone who does not believe the last paragraph should read the Guidance Notes for PEP and ISA Managers before saying it's wrong.

scorpio13

kcm74 wrote: »

I have been given the details for the current account a few days ago, but the ISA mysteriously still has not been processed....

Which is exactly what i was afraid of.

I don't really want to stay with the Abbey (it's a long story :rolleyes:) and as i have to give 24 hrs notice to withdraw the £3000, it's far too late to open an ISA for 07/08.

What i may do is stick the money in the Abbey esaver for now as you can receive quite a good monthly interest rate (good thinking Tony_K ) then have a think about choosing the best ISA for 08/09.

codetown

scorpio, I think it is still convenient for you to give the 24h notice to Abbey for the money withdrawal, open an ISA immediately with them and let them take the money 24h afterwards (still in time if you give notice today).

The fact you open a 07/08 ISA with them does not mean you will stay with them. it is just for the convenience of having it done immediately (as a customer is much faster than anywherelese).

Once opened you might decide to transfer it almost immediately, or maybe contribute also with your 2008/9 money (which will be 3600 GBP) and then trasfer it all to A&L or Icesve or lloyds.

The advantage of opening it is to create a larger lump sum which will benefic from tax-free status. Remeber that the 6.5% Lloyds are offering on their fixed ISA is tax-free interest, so you would need a saving interest of over 8.1% to get that moeny elsewhere if you are a basic taxpayer (and more if you are in the 40% band)!!!

Furthermore the ISA tax-free status is guaranteed, while the interest rates on savings fluctuate in any case....
So it is a very convenient small effort to open it now!

scorpio13

Thanks for the advice codetown.

Didn't really think of that.

kcm74

[HTML]A few years ago I opened my first cash ISA in an Alliance and Leicester branch about an hour before the end of the last day, after phoning to check that they still had application forms available. If you wander around your town you should find somewhere that has one or you should be able to apply online somewhere or print an application form and use that in a branch.

kcm74, you can deposit the money with a different ISA if you wish. In your situation you can completely ignore the no more than one ISA a year rule because you have not yet deposited the money and an ISA does not count as opened until the application has both been accepted and money has been received.
[/HTML]

Thanks for this. I went into an A & L branch on Sat and managed to open one. They did try to tell me they couldn't because I'd already started the process online, but I stood my ground and they backed down in the end!