Best Fixed ISA which allows additional funds after opening

kotka4

Does anyone know if such account exist? I was just about to go for Nationwide Fixed ISA bond (1yr) and noticed in the conditions that you can not put any additional funds in until the end of the 1 year period. Since I only have a 1000 at present, I don't wan't to lose the rest of my ISA allowance for the year... Advice please, thanks

Milarky

kotka4 wrote: »

Does anyone know if such account exist? I was just about to go for Nationwide Fixed ISA bond (1yr) and noticed in the conditions that you can not put any additional funds in until the end of the 1 year period. Since I only have a 1000 at present, I don't wan't to lose the rest of my ISA allowance for the year... Advice please, thanks

Your option with this account is to start an instant access ISA with Nationwide (since splitting your annual allowance across all three of their ISA types is permitted - it says so on their general ISA application form) and save the balance of this year's allowance into that. As soon as you have got enough in this account your remaining option is to open another Nationwide fixed rate bond (with a different maturity date and at whatever rate is then being offered - it may not be 6.15%)

owitemisermusa

kotka4 wrote: »

Does anyone know if such account exist? I was just about to go for Nationwide Fixed ISA bond (1yr) and noticed in the conditions that you can not put any additional funds in until the end of the 1 year period. Since I only have a 1000 at present, I don't wan't to lose the rest of my ISA allowance for the year... Advice please, thanks

First Direct do an e-ISA 5.75% fixed till March 2009. You can pay in as many times as neccessary up to your 3600 limit.

Rate has dropped to 5.75% AER - silently!

kotka4

Thank you for both replies - really helpful! I am trying to gather all 3,600 to go straight to the Fixed Bond at 6.15%, as I also want to transfer my previous year's ISAs to this (in my opinion) good rate.
Now I have another dilema - should I actually go for the 2 year fixed, rather than 1 year.
I am unsure if I get a 2 year fixed - would I lose next tax year's allowance of 3,600, or could I open a new ISA next year with a new provider, leaving the Nationwide one to mature with whatever is in it? Thanks

Milarky

kotka4 wrote: »

I am unsure if I get a 2 year fixed - would I lose next tax year's allowance of 3,600, or could I open a new ISA next year with a new provider, leaving the Nationwide one to mature with whatever is in it? Thanks

You won't lose out anything like that - next year's allowance is completely separate and you are free to select another provider even whilst the bond continues to sit there for the two years.

Just to be clear - assuming you opened a Nationwide (1 or 2 yr) fixed rate bond with the £1000 you say you have today, your remaining allowance (for this year) would then have to be invested with Nationwide (or just not used) - as the the same provider - but this year only. Since you can't add to a 'bond' after the initial amount, Nationwide allows you to add to their other cash ISAs up to that original limit. Assuming that you had managed to save £2600 into their instant access ISA in (say) the next 6 months you could then ask them to open another bond with them at a fixed rate with this amount - but the rate offered would depend on what was then available.

kotka4

Thank you so much for the expert advice! Off to Nationwide this Saturday