Full ISA Guide Discussion Area

patrick999

Hey there.

I am going to be saving for a new car come 2011 and I am looking at opening an Instant Access Cash ISA in the next week or so. My question is this, come the end of the financial year, I will have probably saved up around £2000 or so as I will be sticking away £250 each month, and probably some chunks of my student loan which I don't use so maybe more than that. When the times comes and the ISA closes as such, will I be able to use the same ISA for the following year too.

E.G end of financial year £3000 is saved up, start of next financial year will same ISA re-open and allow me to stick another £3000 in there, so by the end of the finanical year in 2011 will I have the one ISA with £6000 in there?

Or is it a new/different ISA each year?

Biggles84

I have 3 ISAs with 3 separate companies, as I followed my dad's advice of chasing the highest interest rate each year. Is it possible to consolidate them into one provider or by moving one have I then used up my 09/10 allowance? Also, does anyone have any suggestions for the best rate provider this year? I don't mind fixing for a year, but no longer than that.

Thanks,

Lucie

ISA_Aspirant

I put £3,600 into a Barclays Tax Haven ISA last tax year and am now searching for a better rate to transfer the money into. I am interested in the new Manchester BS Premier ISA 45 at 3.26% but have not dealt with a notice account before. Could you just clarify what would happen if in 5 months time, the Manchester BS rate dropped and I wanted to transfer the sum into new ISA X. Does the 45 day notice period mean I may miss out if new ISA X is withdrawn within that 45 day period even if I make the transfer request on the day new ISA X is introduced? Or will it definitely go in once the request is made?

Is this the risk with notice accounts? Also, when would an interest penalty apply with the Manchester BS Premier ISA 45?

Thank you.

KingL

patrick999 wrote: »

When the times comes and the ISA closes as such, will I be able to use the same ISA for the following year too....... Or is it a new/different ISA each year?

It depends upon the individual provider. Most variable rate ISAs will remain open and you can add further funds next year. It's very likely that the rate will have plummeted through the floor and you will want to open a different one by then, mind.

patrick999 wrote: »

...my student loan .....

If you aren't a taxpayer and if you intend spending the money in a year or 2, there's not much point in having an ISA. Have a shop around for a better rate in a savings account or a regular saver.

KingL

Biggles84 wrote: »

I have 3 ISAs with 3 separate companies..... Is it possible to consolidate them into one provider or by moving one have I then used up my 09/10 allowance?

Also, does anyone have any suggestions for the best rate provider this year? I don't mind fixing for a year, but no longer than that.

Yes, you can generally consolidate (cash) ISAs (although it depends on the provider, so check their T&Cs). Make sure that you use the transfer process, though.

Have a check here for an updated list of Cash ISAs http://forums.moneysavingexpert.com/showpost.html?p=4603369&postcount=1

JimmyTheWig

A good few years ago now I started a "maxi" stocks and shares ISA with Abbey. I've been paying in £50 a month since. I've never had a cash ISA.
Am I right in thinking that there is now no such concept of "maxi" and "mini" ISAs?
If I want to open a cash ISA, do I need to tell Abbey or do anything with my stocks and shares ISA? Or as long as I stick to the relevant limits can I just get on with it myself?

Thanks, Jim

RayWolfe

Yes you can. If you don't put more that £3,600 (£5,100) in your S&S ISA, you can, without telling the S&S ISA provider, start a cash ISA for up to £3,600 (£5,100).

bigup7

just a quick question

i am started my first ever Cash ISA soon, putting £1500 into firstly, the rate with IF is 2.75% Variable.

if this rate were to magically go down to say 1%, could i transfer this cash into another ISA say a fixed rate one? or would i only be allowed to add £2100 to the fixed rate ISA so maxing my £3600 limit?

KingL

You can't open (and keep open) two new cash ISAs in the same year, so you could either (1) add the remainder into the IF one and then transfer the whole lot to the new one, or (2) transfer the £1500 into the new one and pay the £2100 in to the new one at the same time. Many ISAs will let you do (2), but some may not, so check the specifics of the account.

Note that most fixed rate ISAs won't let you drip-feed funds in - you have to add them all at (or around) the time you open them.

merlin1

oh my! have read through this thread and i'm starting to gain what i think is some very basic knowledge of isa's

i have just opened a ybs cash e-isa, and will be setting up a standing order to pay into it monthly.

my questions come about the s+s isa's.... how stocks and shares savvy do you have to be to use one to its maximum benefit? also when you see an increase in the value of your s+s isa, do you withdraw? how does it work?