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NS&I Direct ISA
jaminphil
Posts: 15 Forumite
The NS&I Direct ISA looks pretty fantastic. However, I currently have a Halifax ISA Saver Direct, but have not paid in any money yet this financial year.
Unfortunately, it looks like I can't transfer my Halifax one into the new one.
Can I simply open up and start paying in money into the NS&I account? Or do I have to inform Halifax that I wont be using their ISA allowance this year?
Don't particularly won't to end up commiting tax fraud - my father works for the inland revenue!!
Unfortunately, it looks like I can't transfer my Halifax one into the new one.
Can I simply open up and start paying in money into the NS&I account? Or do I have to inform Halifax that I wont be using their ISA allowance this year?
Don't particularly won't to end up commiting tax fraud - my father works for the inland revenue!!
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Comments
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You can have an ISA with whom ever you choose.
ie
M&S 2004-2005
A&L 2005-2006
NS&I 2006-2007
HTH£2 Coins Savings Club 2012 is £4
.............................NCFC member No: 00005.........
......................................................................TCNC member No: 00008
NPFM 210 -
Why can't you transfer your existing Isa contributions to it?0
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Simply because NS&I have decided not to allow you to.regularsaver1 wrote:Why can't you transfer your existing Isa contributions to it?0 -
jaminphil wrote:Can I simply open up and start paying in money into the NS&I account? Or do I have to inform Halifax that I wont be using their ISA allowance this year?
Yes you can and no you don't.0 -
Is it too late to open an ISA this year, are they better opened in April or will I still get a decent return if I opened one and invested the whole £3000 straight away?
PS never had an ISA before
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You can open an ISA on any day, Purplemoon. But you can only open 1 cash ISA in any 1 tax year [i.e. between 06 Apr 06 - 05 Apr 07].**purplemoon** wrote:Is it too late to open an ISA this year**purplemoon** wrote:...are they better opened in April or will I still get a decent return if I opened one and invested the whole £3000 straight away?
You will get the same RATE OF INTEREST, regardless of WHEN you open the account. For instance, if you pay £1,000 into an account earning 5% per annum in April 06, then you will earn £50 in the 12 months to April 07. If you invest the same amount in the same account in, say, October 06, then you would earn £25 for the 6 months to April 07 [assuming that interest rates don't move, of course]. And, of course, the interest is TAX-FREE.
Some ISAs do have stepped rates insofar that they offer slightly better rates the more you invest; some also have notice periods, and introductory bonus rates. Have a look at https://www.moneyfacts.co.uk for the best ISA rates to suit you.
Just think of them as a normal savings account, but with a TAX-FREE wrapper that stops you having to pay income tax on the interest. The only other point worth making is that once you've paid in the maximum £3,000 in any one year - then make a withdrawal - you CANNOT then make a payment in the same tax year to top the ISA back up when you have some spare cash. In short, the maximum you can pay in in any one year is £3k at the moment.**purplemoon** wrote:...PS never had an ISA before0 -
It's probably a loss-leader and they don't want to lose too much per customer. It's the same principle as some top-paying accounts having different tiers of interest, where the rate drops if your balance goes above a certain level. They might open it up to transfers in at some point in the future when they are able to drop the rate.KTF wrote:I wonder why they have done this? Is there a cost involved with transfers because I imagine quote a few people would switch to them if allowed.0 -
Please bear in mind that NS&I only pay interest after close of business on 5th April to the direct ISA so although its a good rate, the interest isnt compounding like it is with a monthly interest paying isa0
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is it still not calculated daily - but paid at the end of tax year?0
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