Full ISA Guide Discussion Area

badger09

innovate wrote: »

ING does not have FSCS protection, only a passport scheme protection.

As I have said several times elsewhere, the absence of FSCS protection would put me off completely.

http://www.moneysavingexpert.com/savings/safe-savings

Fair comment, though it wouldn't put me off that particular institution - personal opinion of course.

To be honest, the OP was obviously struggling with the basic concept of Instant Access v Fixed Rate/Term ISAs - so I concentrated on that aspect, rather than overload him/her with what ifs :eek:

hstrug

Quick question as I'm pretty sure I know the answer but just want to check.
If your ISA is full to the top with your tax-free allowance, and your interest gets paid on top of that, does that then take you over the tax-free allowance and it is taxed, or does that interest stay tax-free? Just got confused on the was some things had been worded!
Thank you

badger09

hstrug wrote: »

Quick question as I'm pretty sure I know the answer but just want to check.
If your ISA is full to the top with your tax-free allowance, and your interest gets paid on top of that, does that then take you over the tax-free allowance and it is taxed, or does that interest stay tax-free? Just got confused on the was some things had been worded!
Thank you

Your interest will also be tax free and will always stay tax free for as long as its in an ISA :T.

The annual limit (£5640 this year) applies only to how much 'new money' you can pay in.

feverchick

Hi

I'm looking to transfer my ISA for a better deal, this years quota now almost used and account full. The money is to be used towards house deposit in spring/summer of 2013 and I am concerned I may loose interest on money I've been saving this year (2012).

Please can someone explain what impacts transferring accounts would have on interest and if I then withdraw the balance before or after the new tax year begins? By transferring do I loose interest already gained in 2012 although it wouldn't be much!

Current account only pays approx 0.20% interest!

Many thanks :-)

innovate

If you go for an instant access ISA, interest is calculated daily and you get whatever has accrued on the day you withdraw or transfer.

If you go for a fixed-term ISA, you may not be able to withdraw / transfer at all before maturity, and you will most likely pay a penalty if you can withdraw / transfer early.

spiersey_2

Concerning ISA's my wife seems to think she has heard that if an ISA is not used for over 3 years that it is closed down implying that you lose all of your money or your interest etc.
I have said that this sounds ridiculous and that once you have put money into an ISA you can leave it in there for as long as you want and accrue interest on that money.
Could you tell us what the facts are please.

rb10

spiersey wrote: »

Concerning ISA's my wife seems to think she has heard that if an ISA is not used for over 3 years that it is closed down implying that you lose all of your money or your interest etc.
I have said that this sounds ridiculous and that once you have put money into an ISA you can leave it in there for as long as you want and accrue interest on that money.
Could you tell us what the facts are please.

Your wife is not correct here.

It will continue to earn interest for as long as you leave it there.

However, note that most accounts will only pay a high rate of interest for a year or so; it is advised to move your account around each year to make sure it is still earning a competitive rate.

If you do not pay in to an ISA in any one tax year, it will be 'deactivated'. Whilst it will still continue to accrue interest, you can't pay any further money in until you reactivate it.

the_quiff

I know I should have taken out the ISA earlier in the year.

I'm now looking for one with a good rate (obviously)
NO BONUS

One I can withdraw (transfer) come the new tax year so hopefully move it into something more competitive?

Any suggests please?

innovate

Check first post of Kazza's ISA thread: https://forums.moneysavingexpert.com/discussion/401374

t0rt0ise

the_quiff wrote: »

I know I should have taken out the ISA earlier in the year.

I'm now looking for one with a good rate (obviously)
NO BONUS

One I can withdraw (transfer) come the new tax year so hopefully move it into something more competitive?

Any suggests please?

Take a look at Tesco's ISA. 2.5%