Full ISA Guide Discussion Area

loranius

bigospedros wrote: »

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!

I am actually in a similar situation as you. I have a filled up ISA from 2013-2014 at another provider, and from Martin's MSE email he was talking about the Nationwide account that I was planning to open, and once again, because the issue of not allowing transfers from previous years arise, I was confused.

I would say don't withdraw your cash first, because you will lose the tax free status gained from previous years. I am planning the following:-

ISA from 2013-2014 -> open a new ISA which allows transfers in and transfer this money in

The current 2014-2015 allowance -> open the Nationwide ISA and put in the maximum amount each month.

This will allow my ISA from 2013-2014 to keep tax free status, and also get a higher rate of interest than it would if I just kept it where it is now.

Can anyone clarify that I can do this? I have been told that I can only open ONE ISA account a year, but from the above posts it would seem that I can open as many as I like, but I can only deposit money into ONE ISA account for the tax year 2014-2015.

Also - does this still apply when NISA comes along? Can I only still deposit into this same Nationwide ISA account I am planning to open now for this 2014-2015 tax year?

Snowbelle

bigospedros wrote: »

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!

The Newcastle Big Home Saver ISA is currently paying a slightly higher rate of interest than the Nationwide.

Archi_Bald

loranius wrote: »

Also - does this still apply when NISA comes along? Can I only still deposit into this same Nationwide ISA account I am planning to open now for this 2014-2015 tax year?

Yes and yes. Don't get hung up about NISA - there won't be anything different for you if you pay £1,250 a month into a cash ISA.

Of course, as has already been mentioned numerous times, you could make more money by putting your cash into current accounts, and then deposit the lot into an ISA next March.

Maxi8

louie123_123 wrote: »

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 :-)

Hi, I applied on line on 1st April for the same ISA as you 14/15. Never received documentation until 14 April from Leeds BS. Returned same day with request for them to take my other ISA from Principality BS. Now want to invest a further £3600 they are saying that they closed this product on 4th April so because i never sent a cheque with my request for them to transfer in my previous ISA i cannot now subscribe! I have been trying to get an answer for a week on this issue. They have discussed with their investments team and now they are discussing with their marketing team (not sure what the marketing team have to do with anything!). I have told them that I am not impressed with them and may just open a Nationwide ISA (lower interest and would have to dripfeed my £3600 in) but out of principal I am not sure I want to invest any more of my money with them! I would have thoguht they would be crying out for investment. Not impressed at all with them to date. I have my cheque and passbook enveloped up since Saturday waiting to send to them!:money:

VfM4meplse

Just a quick check to make sure I'm not missing anything - is FD at 2% still the best option for cash ISAs in excess of £40k?

hgt

VfM4meplse wrote: »

Just a quick check to make sure I'm not missing anything - is FD at 2% still the best option for cash ISAs in excess of £40k?

No - Suggest checking out this thread...

https://forums.moneysavingexpert.com/discussion/4938603

kp10000

Please help!
I have a small amount of cash transferred from last year's ISA into a new 2014 Cash ISA. I have added a small amount of new money this year but the total is still way below the maximum. Barring a lottery win (and in that case I probably won't care!) I have no chance of using the full allowance this year.
So, now that I have found a new ISA with a much better rate, but that doesn't allow transfers, what are my options? I don't think I'm allowed to pay into a second new ISA this year even if I close the first, so am I stuck with the first ISA with the lower rate or is there any way I can get my money into the new ISA with the higher rate?

Archi_Bald

Yes, you are stuck with the ISA you already have.

But why are you bothering with a cash ISA at all if you can't reach the £15K? Have you exhausted all your options with interest paying current accounts? They pay you more interest than ISAs, and with the allowance being £15K, you can move your money into an ISA at a later stage.

Nard25

Hi everybody,

Question kinda similar to some of the above about Nationwide Regular Saver ISA.

I have just over £1000 in an old (last tax year 2013-2014) cash ISA that pays 1.5%. This tax year I've opened Nationwide Regular Saver ISA which unfortunately doesn't allow transfers from old ISAs. It is very unlikely I will get anywhere near my ISA allowance by the end of this tax year so I'm thinking is it worth paying my £1000 out of old ISA and then pay it into the new Nationwide ISA?

I understand that by not transferring properly I loose the tax free status of this £1000 but as I mentioned I will definitely not be putting more than £4k away into new ISA so it shouldn't really matter, right (cause I won't reach my yearly allowance)?

By keeping my money in the old ISA I'll get £18 in interest; at 2.5% Nationwide will give me nearly £30 er year.

What do you think folks?

Thanks

Snowbelle

Nard25 wrote: »

Hi everybody,

Question kinda similar to some of the above about Nationwide Regular Saver ISA.

I have just over £1000 in an old (last tax year 2013-2014) cash ISA that pays 1.5%. This tax year I've opened Nationwide Regular Saver ISA which unfortunately doesn't allow transfers from old ISAs. It is very unlikely I will get anywhere near my ISA allowance by the end of this tax year so I'm thinking is it worth paying my £1000 out of old ISA and then pay it into the new Nationwide ISA?

I understand that by not transferring properly I loose the tax free status of this £1000 but as I mentioned I will definitely not be putting more than £4k away into new ISA so it shouldn't really matter, right (cause I won't reach my yearly allowance)?

By keeping my money in the old ISA I'll get £18 in interest; at 2.5% Nationwide will give me nearly £30 er year.

What do you think folks?

Thanks

Personally I would go for one of the current accounts that pays more interest. You can still put it into an ISA next March if you want to keep its tax free status.