Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
Page 3
    • gadgetmind
    • By gadgetmind 21st Mar 14, 3:58 PM
    • 10,933 Posts
    • 8,916 Thanks
    gadgetmind
    No but the point is that in the new tax year under the new scheme you could move 15,000 of cash to another provider/license in one go which would have taken you 3 years before
    Originally posted by opaque
    You can move your entire ISA savings between providers without any government restrictions. The restriction is on how much *new* money you put into ISAs per annum.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
    • Gizmo247
    • By Gizmo247 22nd Mar 14, 7:55 AM
    • 461 Posts
    • 353 Thanks
    Gizmo247
    For myself, I see these changes to the ISA rules as a real game changer because it changes "Flexibility & Churn".

    This now means I can feel comfortable about dumping my 11,000+ ISA into my mortgage to finally achieve full offset because I know that the change can be reversed.

    Not only that but I can then use the increased allowance to run an ISA in the same way as any easy access saving account. With the increased allowance, I can save, withdraw to upgrade the bathroom, save again, withdraw to upgrade the kitchen, dabble in shares. So I can still aim towards long-term saving without having to keep separate short-term saving pot too.

    The only fly in the ointment is likely to be restrictive transfer policies but this may become more free with new composite NISA products appearing on the market and the addition of partial transfers between Cash ISAs and S&S ISAS.
    MFiT-T3 #149: {Q4/14} (46,447)-->(0) ~ +46,447=100%
    Mortgage Free: 1st October 2014
    • RobStaffs
    • By RobStaffs 22nd Mar 14, 1:40 PM
    • 295 Posts
    • 47 Thanks
    RobStaffs
    Apologies if this already been covered .If I want to put a lump sum into a fixed ISA on 6th April what will happen when the NISA starts up? I assume as I have already fixed so the option is closed with my existing ISA provider. The alternative is to open a easy access ISA at very low rate. Is this not just an opportunity for financial institutions to get money on the chaps for a few months?

    EDIT: Think I may have worked this out. Is the NISA a completely new product that will be offered at their own set of interest rates?
    Last edited by RobStaffs; 22-03-2014 at 1:46 PM.
    • Archi Bald
    • By Archi Bald 22nd Mar 14, 1:58 PM
    • 9,376 Posts
    • 7,432 Thanks
    Archi Bald
    No, the NISA is not a completely new product. You still can only deposit new money into one cash ISA per financial year. If you deposit into anything between April 6 and July 1, you have started your ISA for the year. This will automatically become your NISA on July 1.

    If you choose a fixed rate ISA, you may not be able to deposit any more into it come July. It all depends on what your provider allows. Skipton, for instance, have already announced they will allow further deposits. Shame their rates are pants. Other providers might do similar. There are also providers with fixed rate ISAs that have always allowed multiple deposits (Lloyds, TSB, KRBS, I think).

    If you choose an ISA that allows multiple deposits, you can just continue to make deposits up to the allowance come July.

    There is generally no rush throwing your money into a cash ISA before April 5 2015. You will almost certainly get better interest in current account until then, and you will be able to use your 2014-15 allowance until April 5 2015.
    • RobStaffs
    • By RobStaffs 22nd Mar 14, 2:04 PM
    • 295 Posts
    • 47 Thanks
    RobStaffs
    thanks for that. I see your point. My wife doesn't work so I could deposit the funds in her savings account as she pays no tax on interest. In terms of transferring ISA's from previous years is this just looking at the most competitive rates around or best waiting?
    • ffacoffipawb
    • By ffacoffipawb 22nd Mar 14, 5:24 PM
    • 2,767 Posts
    • 1,908 Thanks
    ffacoffipawb
    Typical tory con!! Who will derive any benefit from this? Given the paltry rates on cash isa's at the moment, only those paying 40% tax. Tory friends!!!
    Originally posted by mikemoate


    ... says a dumb financially illiterate Labour numpty.
    • Frogletina
    • By Frogletina 23rd Mar 14, 2:24 PM
    • 3,204 Posts
    • 11,588 Thanks
    Frogletina
    Am confused now .?? I earn 22000 approx. have 5350 ISA with Santander and 5750 with Coventry. Should i just put it in saving a/c instead ??
    Originally posted by mazybel
    There are several things to take into consideration.

    If you are on fixed rate ISAs then you will face a penalty for withdrawing the money early, even if it is allowed.

    If you can find a savings or current account which pays more interest after tax than your current ISAs then you could consider withdrawing the money from one or both of your ISAs and putting it into one of these. However, some of these accounts need regular monthly deposits and the interest rates on them could drop.

    ISAs often have higher interest rates for new money only, so if you haven't closed your accounts you could withdraw enough from one ISA to fund a 2014 ISA in April if the rates are better. Alternatively in July when the 2014 NISAs comes out, if there is an account which pays more for new money than transferred money, you could close both ISAs and open a NISA for 2014

    Usually the rule is that you never close an ISA, only transfer, but with the new 15,000 limit it makes sense to move less than that into cash if you can get more interest even on a taxable account and open a NISA only if the interest rates rise (unless you have more money you want to deposit during the same tax year into an NISA which would take you over 15000)

    Remember, only one new ISA / NISA can be opened in a single tax year, but multiple ones can be opened for transferred money from previous years ISA holdings.
    Not Rachmaninov
    But Nyman
    The heart asks for pleasure first
    SPC 8 #441 1567.31 SPC 9 #441 1014.64 SPC 10 #441 1164.13 SPC 11 #441 1598.15 SPC 12 #63
    • RobStaffs
    • By RobStaffs 23rd Mar 14, 2:47 PM
    • 295 Posts
    • 47 Thanks
    RobStaffs
    There are several things to take into consideration.

    If you are on fixed rate ISAs then you will face a penalty for withdrawing the money early, even if it is allowed.

    If you can find a savings or current account which pays more interest after tax than your current ISAs then you could consider withdrawing the money from one or both of your ISAs and putting it into one of these. However, some of these accounts need regular monthly deposits and the interest rates on them could drop.

    ISAs often have higher interest rates for new money only, so if you haven't closed your accounts you could withdraw enough from one ISA to fund a 2014 ISA in April if the rates are better. Alternatively in July when the 2014 NISAs comes out, if there is an account which pays more for new money than transferred money, you could close both ISAs and open a NISA for 2014

    Usually the rule is that you never close an ISA, only transfer, but with the new 15,000 limit it makes sense to move less than that into cash if you can get more interest even on a taxable account and open a NISA only if the interest rates rise (unless you have more money you want to deposit during the same tax year into an NISA which would take you over 15000)

    Remember, only one new ISA / NISA can be opened in a single tax year, but multiple ones can be opened for transferred money from previous years ISA holdings.
    Originally posted by Frogletina
    thats interesting. So if you have 50k in a maturing ISA you can transfer into 5 ISA's at 10k each? I suppose this would be useful if your ISA is approaching the 85k threshold?
    • Frogletina
    • By Frogletina 23rd Mar 14, 3:59 PM
    • 3,204 Posts
    • 11,588 Thanks
    Frogletina
    thats interesting. So if you have 50k in a maturing ISA you can transfer into 5 ISA's at 10k each? I suppose this would be useful if your ISA is approaching the 85k threshold?
    Originally posted by RobStaffs
    Yes, you can do that.

    You might want to put some ISA money on instant access, and others fixed at various lengths.


    I have 4 current ISAs

    A 2 year fixed ISA (4.1%) which matures in June this year which contains ISAs from three different years, not consecutive - the first ever ISA I took out was a fixed one so I had to take out another one the following year as I could not add to the first one.

    A 2 year fixed ISA (4.1%) which matures in July and was once a Tessa

    A 2 year fixed ISA (3%) which matures next year which holds two non consecutive years ISAs

    A 3 year ISA (2.5%) which matures in 2016 which came from a previous 3 year ISA - I originally split this between 2 ISAs - one fixed and one instant access (which I closed and transferred the proceeds to my Lloyds Vantage accounts as the interest was higher).

    I have had ISAs with the following banks/building societies - currently I am only with two but that could easily change.

    The Coventry BS
    Bradford and Bingley
    Alliance and Leicester
    Santander
    Halifax
    Cheltenham and Gloucester
    Nationwide
    Not Rachmaninov
    But Nyman
    The heart asks for pleasure first
    SPC 8 #441 1567.31 SPC 9 #441 1014.64 SPC 10 #441 1164.13 SPC 11 #441 1598.15 SPC 12 #63
    • deed02392
    • By deed02392 24th Mar 14, 8:54 AM
    • 76 Posts
    • 16 Thanks
    deed02392
    The ISA news doesn't really please me at all. I was impressed at first at the huge rise, but then I realised the rates on ISAs are laughable.

    I get at the very least twice as much lending on P2P sites than I do from my ISA. On that note, though, very pleased to see the government will be treating P2P lending as tax free. Need to go read a bit more about that to fully understand how that'll work, though.

    I'm still living with parents at the moment, saving for a mortgage, so maximising my interest returns NOW is what is important to me (for those with longer term saving interests, maybe your best bet is to take full advantage of the new tax free wrapper size, in anticipation of future transfer-in rates).

    But for those interested in getting a worthwhile rate on a shorter term, I've not yet found a more reliable and easy method than P2P lending. S&S rates but fees only if you get a return.
    • Archi Bald
    • By Archi Bald 24th Mar 14, 9:04 AM
    • 9,376 Posts
    • 7,432 Thanks
    Archi Bald
    On that note, though, very pleased to see the government will be treating P2P lending as tax free. Need to go read a bit more about that to fully understand how that'll work, though.
    Originally posted by deed02392
    Nothing much to read about this yet since it isn't yet in consultation stage and won't be implemented for a long time. The budget report has made no provision for it before 2017.


    But for those interested in getting a worthwhile rate on a shorter term, I've not yet found a more reliable and easy method than P2P lending.
    Originally posted by deed02392
    for most people it will be easier to just use multiple current accounts for short term savings. Until very recently, you could stick some 90K into such accounts, more than enough for most people saving up for a mortgage. No risk of defaults, instant access to money, and decent interest, if perhaps marginally less than what can nowadays be achieved in P2P after all costs.

    S&S rates but fees only if you get a return.
    Originally posted by deed02392
    what are S&S rates?
    • badger09
    • By badger09 24th Mar 14, 12:41 PM
    • 7,012 Posts
    • 6,636 Thanks
    badger09
    But for those interested in getting a worthwhile rate on a shorter term, I've not yet found a more reliable and easy method than P2P lending. S&S rates but fees only if you get a return.
    Originally posted by deed02392
    I suspect you were not invested in P2P in 2008 and early 2009
    • deed02392
    • By deed02392 26th Mar 14, 8:34 AM
    • 76 Posts
    • 16 Thanks
    deed02392
    Nothing much to read about this yet since it isn't yet in consultation stage and won't be implemented for a long time. The budget report has made no provision for it before 2017.
    Originally posted by Archi Bald
    Yeah later went on to read that, that's a disappointing timescale.


    for most people it will be easier to just use multiple current accounts for short term savings. Until very recently, you could stick some 90K into such accounts, more than enough for most people saving up for a mortgage. No risk of defaults, instant access to money, and decent interest, if perhaps marginally less than what can nowadays be achieved in P2P after all costs.
    Originally posted by Archi Bald
    Hmm the best in credit rates on current accounts only apply on fairly low balance caps, Santander 123 being the exception but 3% after tax minus the 2 fee AND given I don't have any bills to warrant the cash-back because I'm not a home-owner makes the interest under 2.4% and only on the first 20k. I would love it if they were a competitive option but I'm referring to 'Best Bank Accounts' on this site for the above. The liquidity is appealing vs. P2P lending although I've found that not to be too bad either if you take the time to win the best rates at bidding.

    what are S&S rates?
    Originally posted by Archi Bald
    Stocks & shares.
    • Likestowrite
    • By Likestowrite 26th Mar 14, 10:20 AM
    • 104 Posts
    • 58 Thanks
    Likestowrite
    Does this new scheme mean I'd be better moving my premium bonds into an ISA?
    • Archi Bald
    • By Archi Bald 26th Mar 14, 10:39 AM
    • 9,376 Posts
    • 7,432 Thanks
    Archi Bald
    It has probably always been a better idea to have your money in an ISA rather than in PBs. But if you want a gamble with some spare cash, PBs are probably a better idea than the lottery.
    • p00hsticks
    • By p00hsticks 26th Mar 14, 1:25 PM
    • 6,988 Posts
    • 7,657 Thanks
    p00hsticks
    It has probably always been a better idea to have your money in an ISA rather than in PBs. But if you want a gamble with some spare cash, PBs are probably a better idea than the lottery.
    Originally posted by Archi Bald
    No, I think statistics show that, if you do want to gamble in this way, the best method is to put your capital into an ISA (assuming it will generate more interest tax free than an ordinary taxed savings account) and then withdraw the interest at regular intervals and spend it on lottery tickets.

    This way, your capital is gradually eroded by inflation over time in the same way as with premium bonds, but the lottery tickets apparently offer a better return on average than the chances of winning on the bonds.
    • zagfles
    • By zagfles 26th Mar 14, 1:51 PM
    • 14,266 Posts
    • 12,439 Thanks
    zagfles
    No, I think statistics show that, if you do want to gamble in this way, the best method is to put your capital into an ISA (assuming it will generate more interest tax free than an ordinary taxed savings account) and then withdraw the interest at regular intervals and spend it on lottery tickets.

    This way, your capital is gradually eroded by inflation over time in the same way as with premium bonds, but the lottery tickets apparently offer a better return on average than the chances of winning on the bonds.
    Originally posted by p00hsticks
    The current PB "interest rate" (ie prize fund) is 1.3%. The lottery pays back about 50% stakes in prizes, so if the ISA pays over 2.6% you're right.

    The big difference is in the chances of winning a big prize - the lottery payouts are skewed towards the big prizes whereas PB payouts are skewed towards smaller prizes. So you're chances of becoming a millionaire are higher with the lottery but the median return is lower.
  • Cashsaver1983
    Yeah later went on to read that, that's a disappointing timescale.




    Hmm the best in credit rates on current accounts only apply on fairly low balance caps, Santander 123 being the exception but 3% after tax minus the 2 fee AND given I don't have any bills to warrant the cash-back because I'm not a home-owner makes the interest under 2.4% and only on the first 20k. I would love it if they were a competitive option but I'm referring to 'Best Bank Accounts' on this site for the above. The liquidity is appealing vs. P2P lending although I've found that not to be too bad either if you take the time to win the best rates at bidding.


    Stocks & shares.
    Originally posted by deed02392
    You don't have to be a homeowner to get cashback as long as your a bill payer of council tax, water, gas and electricity, contract mobile phone, sky/virgin etc, broadband, home phone. You can be a renter and get cash back. For example a combined gas and electricity bill of 100 would generate 2 a month in cashback so straight away you have paid for the fee for the account - any further cashback is a bonus and the 2.4% interest received (3% net of basic rate tax) would be completely yours and not needed to pay the 2 fee. A mobile phone bill of 66.67 would also repay the fee alone (myself and my partner have average mobile phone bills and pay 70pm) but remember you need 2 direct debits on the account to qualify.
    • tigerm25
    • By tigerm25 10th Apr 14, 8:11 AM
    • 23 Posts
    • 5 Thanks
    tigerm25
    Will my current ISA that I opened in December 2013 automatically change to a NISA on July 1st? Or do I need to open a new ISA today to get the benefits of a NISA on July 1st?
    • Herbalus
    • By Herbalus 10th Apr 14, 8:15 AM
    • 2,363 Posts
    • 2,073 Thanks
    Herbalus
    Will my current ISA that I opened in December 2013 automatically change to a NISA on July 1st?
    Originally posted by tigerm25
    No. It will stay the same product. Actually I think yes, it will become a new ISA, but obviously if it's a fixed term product or doesn't allow extra deposits then you won't be able to add money to it.

    Or do I need to open a new ISA today to get the benefits of a NISA on July 1st?
    Originally posted by tigerm25
    Depends what your ISA is. If you want to put 15,000 in it and your current ISA will allow you to do so, you don't need a new one.
    Last edited by Herbalus; 10-04-2014 at 8:18 AM.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,726Posts Today

7,159Users online

Martin's Twitter