Full ISA Guide Discussion Area

Lokolo

um5000 wrote: »

Daft question I'm sure but it isn't all that clear:
If I have an ISA with funds already in it and I transfer that to a new provider in April, does that make the new provider my only ISA (to which I must add funds if I want to benefit from tax relief), or can I open another one for in-year savings?
I want to take advantage of e.g. Alliance and Leicester's 3.5% but that's only on new savings (no transfers in) - but I don't want to be stuck with 0.5% (which is what my current provider will drop to soon) on my existing balance!

I assume you mean April 6th as that is when the new tax year is. But no, transferring doesn't mean you have contributed so you are free to open one elsewhere and deposit money there.

chicarg

hi guys

Quick question as I havent been able to find the answer anywhere, though it might be that is just too obvious!

My partner and I finally have some savings we would like to transfer to a Cash ISA. Question is: the allowance for this tax year of £3600 cash is per person? Is there an allowance per couple or we would be able to open 2 different cash ISAS under each other's names, and each one benefiting from the 3.6 allowance?

Also, the interest is paid annually, but if we were to withdraw the cash before a year, do we still have to wait until the anniversary of the initial deposit to get our pro-rated interest? can a Cash ISA remain "empty" just waiting for the interest to capitalise?

thank you so much to whoever can help with answers...

Lokolo

chicarg wrote: »

hi guys

Quick question as I havent been able to find the answer anywhere, though it might be that is just too obvious!

My partner and I finally have some savings we would like to transfer to a Cash ISA. Question is: the allowance for this tax year of £3600 cash is per person? Is there an allowance per couple or we would be able to open 2 different cash ISAS under each other's names, and each one benefiting from the 3.6 allowance?

Also, the interest is paid annually, but if we were to withdraw the cash before a year, do we still have to wait until the anniversary of the initial deposit to get our pro-rated interest? can a Cash ISA remain "empty" just waiting for the interest to capitalise?

thank you so much to whoever can help with answers...

ISA = Individiual etc.

You can both open one each, you cannot open joints. Must be under your own names. So you can put £7,200 between you now. Then another £10,200 from April 6th (as the allowance is going from £3,600 to £5,100 for Cash ISAs).

Interest is paid annually but you close the account and get any interest owed to you at that time. So if you have had an account for 6 months you'll get 6 months worth of interest.

But yes, a Cash ISA can be empty waiting for interest to come.

chicarg

thank you for your quick response, Lokolo, that answers all my queries and it is a great help. Thank you.

chicarg

I'm sorry, I spoke too soon because another question occurred to me: when the new tax year starts and I get another allowance, can I top up my existing ISA with an extra 5.1k? or do I have to open a new one with a different provider to use the new allowance?

Lokolo

chicarg wrote: »

I'm sorry, I spoke too soon because another question occurred to me: when the new tax year starts and I get another allowance, can I top up my existing ISA with an extra 5.1k? or do I have to open a new one with a different provider to use the new allowance?

You can do either.

rubia1409_2

Baldur wrote: »

You are not clear about what you mean.

You opened the account 3 years ago - fine, that is irrelevant as far as the current tax year is concerned.

This year (since 6th April 2009) you have saved how much in the account? If you have subscribed ANY new money to that account since that date, then you cannot subscribe to any other ISA until 6th April 2010.

This year I have saved around £2500, taking the cash ISA up to the maximum of £3600.

So, even though I haven't opened a cash ISA this tax year, because I have saved the maximum allowed, I can't open another ISA until after 6 April 2010?

If I open one after 2010, can I save £3600 in that ISA and also another £3600 in my existing ISA?

swissrebel

Perhaps a stupid question but i'm ok looking stupid here lol.

Want to top up the remaining allowance of my ISA for the year, but have withdrawn a tiny amount of it at some point - thus reducing my allowance - but i'm not entirely sure how much allowance I have left!

If I go to pay into my ISA and overpay slightly, will my bank reject the transfer or will the excess cash simply be exempt from tax-free status?

Cheers!

RayWolfe

Best no to do that. Can't you look at a statement? Online? Ask the bank?

willhay99

Can't find answers to these ISA questions:

(I even checked the governments guide for ISA managers!)
(Not allowed to add link though I do recommend reading it)

Scenario
1. I have a shares ISA that has grown to £12,000. Can I transfer this to a new ISA even though it exceeds the 7200/10200 limit?

2. Is it cheaper to use a discount broker to do a ISA Shares transfer than go direct to the Funds Supermarket?

Hope you can help - thanks