Full ISA Guide Discussion Area

huahine

Dear All,
Are persons who are ordinarily UK residents, but not residents for UK tax purposes permitted to have an ISA?

Archi_Bald

http://www.hmrc.gov.uk/isa/faqs.htm#4

Consumerist

Nard25 wrote: »

. . . 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)?

If you are not likely to use your entire £15K allowance this year then you are quite right, you have nothing to lose by withdrawing cash from your previous-years' ISAs to put it into one you have opened this year.

The new £15K cash ISA limit [STRIKE]does[/STRIKE] will give the smaller saver greater scope for getting round the no-transfers restriction.

guitarman001

Say I put £15k into a cash ISA. Can I later transfer some to an investment ISA? I suspect not. And I suspect the opposite is likely the same.

My Santander ISA ends soon but rates look so poor, I'm not sure what to do. Don't know if I'll put any new money into an ISA this year (most of it is short-term money so don't want to be investing it in the stock market)

innovate

You have always been able to transfer from a cash ISA to an S&S ISA.

From July 1 2014, you will also be able to transfer from S&S ISAs to cash ISAs.

You are right not to consider S&S ISAs if you need your funds in the next 5-7 years.

jimjames

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

If you don't use an isa at all you can get £125 per year before tax on £1000 using current accounts. Nothing in an ISA beats that even after tax.

loranius

@Nard25

Seconded above post -

http://www.moneysavingexpert.com/savings/savings-loophole?utm_source=MSE_Newsletter&utm_medium=bignote-one&utm_term=06-May-14-v1&utm_campaign=savings&utm_content=8

I just opened a TSB account and dumped £2,000 in there. This account isn't limited to 1 year rates like Nationwide Flexdirect, which I opened last year. This way, I will earn even more than in an ISA, and I will open another TSB later on once I check the interest is correct (also do not want my credit file to become shambles).

If you are only saving small amounts of money this way, while fiddly, will net you more interest.

Consumerist

loranius wrote: »

. . . I just opened a TSB account and dumped £2,000 in there. This account isn't limited to 1 year rates like Nationwide Flexdirect, which I opened last year. This way, I will earn even more than in an ISA, and I will open another TSB later on once I check the interest is correct (also do not want my credit file to become shambles).

If you are only saving small amounts of money this way, while fiddly, will net you more interest.

The rate isn't fixed so it could go down from the current 5%.

You might have been better off to open two account straight away - a single search for both accounts might make less of a footprint on your credit file.

By setting up £500 monthly standing orders from each account to the other there is no fiddling to do as they fund each other every month.

That's what I've done anyway.

loranius

Consumerist wrote: »

The rate isn't fixed so it could go down from the current 5%.

You might be better off the to open two account straight away - a single search for both accounts might make less of a footprint on your credit file..

By setting up £500 monthly standing orders from each account to the other there is no fiddling to do as they fund each other each month.

That's what I've done anyway.

I opened the one last week, does opening one now mean that I get another search? Or they will just use the same search as before?

I'm afraid as I have a whole pthelora of bank accounts I don't like using the automatic system, I do all the transfers myself. I have been hit before with some bank charges because of credit card bills direct debit taking out more than I had in the bank. It was a long road to ask them as a gesture of goodwill to refund

Consumerist

loranius wrote: »

I opened the one last week, does opening one now mean that I get another search? Or they will just use the same search as before?

Good question. I'm not sure how long it takes searches to be recorded on credit files - it might be immediate.

Edit
Standing orders are under your own control so shouldn't lead to unexpected changes which direct debits can. And the dates aren't critical as long as they are with the calendar month.