Top Cash ISAs Discussion Area

SirSaveALot_2 · 25 January 2008 at 7:27PM

Takeem wrote: »

Hi,

I basically have £5000 that I want to put in some sort of interest account. From what I understand I can only put £3000 into an ISA, is this correct. So, when I used the ISA calculator I put in £3000.00 for the amount i already have and then it asks how much you are going to be able to save a month, I just put 0. and then for the interest rate I put 6.1% (icesave). This comes out at £3183.00 meaning I make £183.00 on my £3000 for 1 year . Thats great, but then I decided that I can save £50.00 a month from my wages and I put that in the box I had origonally put 0 and it came out at £3802.65, thats fantastic i thought but if I have reached my £3000 surely thats my limit? Also is there a faster way to make my money grow

Some help please, whats best for me to do. Roulett all on red prehaps

Hi Takeem

See my detailed reply on the similar thread you started in Savings and Investments http://forums.moneysavingexpert.com/showpost.html?p=8184499

You didn't mention £50 a month there, but that would work with the plan I proposed. You could add it to the Icesave Savings account before April, then you could start adding it direct to the ISA.

Further on the point you're confused on, the ISA limits are all to do with how much you put in in a tax year. If you put it in and make money, it doesn't matter. If you put it in and lose money (in an investment) it doesn't matter, if you put it in and take some out it doesn't matter (i.e. you can't add any more in even if you took some out or lost some). Hope that makes sense. The docs I pointed you to in my other post probably explain it better.

Good luck with the savings.
SirSaveALot

margorah · 30 January 2008 at 1:18PM

I'm sure this has been asked many times before but I just wanted to make absolutely certain. If I have an ISA from a previous year but have not paid anything into it this tax year, can I open an ISA with an alternative provider and keep both ISA's open?

I understand I can only pay into one, I just want to check I don't have to transfer.

Thanks for any help

M

bigdave_4 · 30 January 2008 at 3:53PM

acrobat wrote: »

apologies if question stupid

took out our first cash isa using the 3k limit but didnt take it out till may 07. going to take out another one before april 6th so as the first one in my name will do the second in hubby's... think this is right thing to do?
just wondered though, how does the interest get paid? i understand its yearly but is that to april or the month you took out the isa. also can the interest stay in the isa or not??
hope this makes sense, and thanks in advance

Interest is calculated to 4.4.2008 and can be left in existing ISA

SirSaveALot_2 · 30 January 2008 at 7:33PM

margorah wrote: »

I'm sure this has been asked many times before but I just wanted to make absolutely certain. If I have an ISA from a previous year but have not paid anything into it this tax year, can I open an ISA with an alternative provider and keep both ISA's open?

I understand I can only pay into one, I just want to check I don't have to transfer.

Thanks for any help

M

Yes, your understanding is correct. Though you may wish to check if you can get a significantly better rate by transferring - the current top payer, IceSave at 6.1% accepts transfers in.

cheers

fuji_2 · 31 January 2008 at 9:00PM

hiya

Complete newbie here. Thanks to all posters on this site I'm learning loads.

My question is.....

I've got £10,000 in a crappy savings account. I'm not up on stocks, shares and investing and the like but AM keen on getting better interest.

I hope to move overseas for good in Feb 2009 and want to make as much money as possible before then. Is my best option to open 2 ISAs with £3k either side of April?

Thanks in advance;)

simonplayer · 1 February 2008 at 12:35PM

HI,
That's a very good point rasied above- which kind of links to my question. From above- can I open an ISA with £3000 on April 5th 2008, and then put another £3600 into the same ISA, on April 6th 2008?? I realise I then wont be able to add to it until 6th April 2009.
My other question relates to the fact that I know you can only have one ISA per year, with a total of 3000 paid in. If I open an ISA this year, put my 3000 in, then next year put another 3000 in, am I also able to open a second ISA (in the second year) and put another 3000 in that one. Forgetting about the increase to 3600 for the moment. Does this make sense??
Or is it correct that I can only have ONE ISA open at any one time??

Aegis · 1 February 2008 at 12:49PM

simonplayer wrote: »

HI,
That's a very good point rasied above- which kind of links to my question. From above- can I open an ISA with £3000 on April 5th 2008, and then put another £3600 into the same ISA, on April 6th 2008?? I realise I then wont be able to add to it until 6th April 2009.
My other question relates to the fact that I know you can only have one ISA per year, with a total of 3000 paid in. If I open an ISA this year, put my 3000 in, then next year put another 3000 in, am I also able to open a second ISA (in the second year) and put another 3000 in that one. Forgetting about the increase to 3600 for the moment. Does this make sense??
Or is it correct that I can only have ONE ISA open at any one time??

Forget about the number of ISAs you can open, or have money in. This is effectively infinite.

The rules are that you can only contribute to one cash ISA a year, with a maximum contribution of £3k (£3600 from next tax year as you already noted). The ISA that you are currently contributing to can be transferred to a new provider, where contributions may continue, but you still have only one allowance, and as it is effectively the same ISA you are still only making those contributions to one account.

I hope that is enough information for you to realise that the answer to your second question is "no".

Your first question is perfectly possible, though you gain no benefit by waiting until the 5th of April to open an ISA and might as well do so now to gain the tax breaks sooner rather than later.

Mum_of_5_2 · 5 February 2008 at 2:03PM

HI

I'm trying to learn about ISA's, sorry if this is in the wrong place. I've read the article but didn't feel clear about switching. I've got about £800 in an ISA, we only put in £25 a month, but something better than nothing I hope! It's been with the Abbey since we got it, but I was thinking about switching as in 2006 the interest rate was 5% and i've seen higher, just wanted some advice really, things to watch out for?

thanks

Mum of 5

BenL · 6 February 2008 at 11:24AM

Simon

You will probably see around the dates you mentioned that banks/building societies come up with offers like that.

I've seen them in previous years from Abbey and the like.

eilz · 6 February 2008 at 12:12PM

1)If you have a mini-cash isa, I can invest £3000 right now(2007 tax year) and I think £3600 for next tax year(I mean after April2008) is that correct?

2)Also, if I put the maximum amount as above, can I still open any other type of isa and add money to it this tax year(2008)?

The reason I ask this is> If money in an ISA is only guaranteed for the first £35,000 like with banks if they go bust, wouldn't it be wise to invest anything additional elsewhere instead for security.

Sorry for the poor explanation, I hope the above makes some sense.

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