Full ISA Guide Discussion Area

Lokolo

nkomp18 wrote: »

Hi there,

I have a question. I'm normally good with ISAs but recently I visited the bank and they gave me conflicting information so I think I just spoke to someone inexperienced.

My question is regarding this year 2014/2015 and the NISA.

I currently have two different ISAs from previous years and I am thinking of opening the Santander 2.3% 2 year fixed one and transfer both of them into that. However that ISA allows deposits only till May and then after that it gets locked for 2 years.

In that case, I assume I can open a second ISA to deposit the new NISA allowance, right? Someone at the bank told me I can only open 1 ISA per year but I think that is false information. From what I understand I can open as many ISAs as I want, but I can only deposit up to the limit in all of them, isn't it so?

If that's not the case, then I can't imagine how we are supposed to make any deposits after May?

Who can clarify?

You can do as you say.

You can open as many ISAs as yo want, you can only deposit into one ISA at any one time. You cannot split deposits between ISAs.

Transferring doesn't count as deposits.

I am not 100% sure on the Santander fixed term ISA, but some only allow 1 deposit, so you may have to transfer one ISA to the other, then transfer into the Santander one, or open 2 and transfer one to each.

That doesn't stop you from opening an ISA elsewhere for new deposits.

And remember, when transferring, you use an ISA transfer form.

Edit:

If you start putting new money into the Santander Fixed ISA, then after May you cannot deposit anymore into ISAs as new money has to be together and that ISA will stop allowing you to deposit.

badger09

nkomp18 wrote: »

Hi there,

I have a question. I'm normally good with ISAs but recently I visited the bank and they gave me conflicting information so I think I just spoke to someone inexperienced.

My question is regarding this year 2014/2015 and the NISA.

I currently have two different ISAs from previous years and I am thinking of opening the Santander 2.3% 2 year fixed one and transfer both of them into that. However that ISA allows deposits only till May and then after that it gets locked for 2 years.

Assuming you're a 123 customer, you can open the 2.3 fixed rate ISA and arrange for your both your previous years' ISAs to be transferred in. You need to put in the transfer requests within 14 days of opening the ISA

You can pay in up to £5940 now, and up to a further £9060 between 1 July and 31 August 2014 - after that you will not be able to pay any more in.

nkomp18 wrote: »

In that case, I assume I can open a second ISA to deposit the new NISA allowance, right? Someone at the bank told me I can only open 1 ISA per year but I think that is false information. From what I understand I can open as many ISAs as I want, but I can only deposit up to the limit in all of them, isn't it so?

If that's not the case, then I can't imagine how we are supposed to make any deposits after May?

Who can clarify?

If you don't want to pay new money into the 123 ISA, you can open a different one now for new money - you can't pay into both though!

nkomp18

Okay so this is the bit I wasn't clear about, the fact that we cannot split deposits within ISAs. That means that the only choice here is to use the 2.3% ISA to transfer old ISAs into it and not for any deposits, because it gets locked in May and that means you are left unable to deposit the new allowance.
Thanks for the information!

badger09

nkomp18 wrote: »

Okay so this is the bit I wasn't clear about, the fact that we cannot split deposits within ISAs. That means that the only choice here is to use the 2.3% ISA to transfer old ISAs into it and not for any deposits, because it gets locked in May and that means you are left unable to deposit the new allowance.
Thanks for the information!

I suggest you read my post again.

It doesn't 'get locked in May' - it 'gets locked' on 31 August!

m1618

I usually take out a fixed term ISA at the start of the ISA year (full annual ISA limit) to get the tax benefit asap. This sort of account doesn't allow you to top it up later in the year.

But I've heard rumours that some companies are going to allow you to top up their account after 1 July, to take advantage of the increased limits. Does anyone know who is offering this?

Is the only other option to put the money in a variable rate account for now, and then transfer that, and add the extra money at the same time, to a new fixed rate account come 1 July, when ISAs automatically become NISA's?

And FYI...
For anyone wanting more detail on the new regime I found this web page very helpful:
http://www.thisismoney.co.uk/money/saving/article-2584326/Isa-limit-increase-15k-held-cash.html

Scarpacci

m1618 wrote: »

I usually take out a fixed term ISA at the start of the ISA year (full annual ISA limit) to get the tax benefit asap. This sort of account doesn't allow you to top it up later in the year.

But I've heard rumours that some companies are going to allow you to top up their account after 1 July, to take advantage of the increased limits. Does anyone know who is offering this?

Is the only other option to put the money in a variable rate account for now, and then transfer that, and add the extra money at the same time, to a new fixed rate account come 1 July, when ISAs automatically become NISA's?

And FYI...
For anyone wanting more detail on the new regime I found this web page very helpful:
http://www.thisismoney.co.uk/money/saving/article-2584326/Isa-limit-increase-15k-held-cash.html

Skipton, Halifax and Santander are offering this. Each of those has somewhat different rules about the "open" period before the money is locked away, but I think all offer at least a month to top up once the higher allowance kicks in on July 1.

m1618

Scarpacci wrote: »

Skipton, Halifax and Santander are offering this. Each of those has somewhat different rules about the "open" period before the money is locked away, but I think all offer at least a month to top up once the higher allowance kicks in on July 1.

Brilliant - thanks! :T I'll go and check them out.

I've also just found a Coventry 4yr account that allows top ups (with a low penalty for an early escape should interest rates go up!)

bigospedros

Question.

I have a Santander ISA from the 2013/2014 tax year. It has a small interest rate, so I am waiting for the final annual interest to be paid and then I'm planning to move the money elsewhere.

I was looking at the Nationwide Regular Saver ISA as it has the best interest rate, but it doesn't accept transfers. If I withdraw all the money from my current ISA and then use it to open the Nationwide ISA, is that allowed? I know I won't be able to put the full amount in first up, cos of the £1250 per month limit on the Nationwide ISA, but I can drip feed it in over 3 months. I'm just not sure if this is allowed as the money was in an ISA.

Failing that, I'm planning just put the money into my 123 account with Santander, because the interest rate is not too bad, even when I pay tax.

Thanks for your help, folks!

louie123_123

Hi,

I opened a Leeds Building Society 5 YEAR FIXED RATE ISA (ISSUE 37) on 2nd April 2014. I transferred my old ISA cash into it (although this didn't reach the new ISA until yesterday i.e. in the new tax year). As it is a special rate, I have been told that I cannot pay anything else into this new Leeds Building Society ISA.

I know that I can open a new ISA in each financial year, would I be okay to open another ISA now and pay into it in this financial year? Does the fact that my old cash was only transferred in this tax year affect my ability to open/pay into an ISA in this same year?

Thanks :-)

innovate

Yes you can open a new ISA and deposit money into it. No, the transfer does not affect this.