ISAs - Something I don't understand
Discussion
I have an ISA with Halifax that is earning close to bugger all money now and I haven't deposited any for a while. Santander and Alliance & Leicester are offering decent rates on ISAs now, but I am unsure whether I can transfer from Halifax to one of these, or if not, open a new ISA account with either of the aforementioned and pay into it from a different savings account.
I don't quite understand the rules fully and am concerned that i've thought about this at the wrong time of year to do something about it.
I don't quite understand the rules fully and am concerned that i've thought about this at the wrong time of year to do something about it.
Santander are offering a very competitive rate of 3.2% currently. No transfers in allowed though. http://www.santander.co.uk/csgs/Satellite?appID=ab...
I'm sure it was 3.5% the other day though...
I'm sure it was 3.5% the other day though...
You can have as many ISA's as you want, but you can't pay more than the total tax free allowance into them all together. If you were to do so, expect demands with menaces from the tax man.
You can normally transfer an old ISA into a new ISA and then add on up to the tax free allowance, and indeed you should do this to keep earning at the best possible interest rate. However, it looks lime Santander are touting for new cash and don't want people transferring £70k+ into their ISA to take advantage of that rate.
You can normally transfer an old ISA into a new ISA and then add on up to the tax free allowance, and indeed you should do this to keep earning at the best possible interest rate. However, it looks lime Santander are touting for new cash and don't want people transferring £70k+ into their ISA to take advantage of that rate.
RDE said:
I have an ISA with Halifax that is earning close to bugger all money now and I haven't deposited any for a while. Santander and Alliance & Leicester are offering decent rates on ISAs now, but I am unsure whether I can transfer from Halifax to one of these, or if not, open a new ISA account with either of the aforementioned and pay into it from a different savings account.
I don't quite understand the rules fully and am concerned that i've thought about this at the wrong time of year to do something about it.
I am not sure they latest offer allows transfers in? Can you apply online? I thought it was a branch only ISA?I don't quite understand the rules fully and am concerned that i've thought about this at the wrong time of year to do something about it.
What A&L do every year is offer a top rate for IAS's, which is comprised of 1% interest and a 12 month 'bonus' of 2.5%. At the end of 12 months it reverts to 1%. They do the same with their savings accounts and keep changing the names to confuse it all ( Saver, saver plus, Internet saver,etc).
Looking at it cynically, they depend on the inertia/hassel factor of having to open a new acount at the end of the 12 months to bgt your money then pay you 1%.
Every year I have to opern new savings accounts with them ( did it a few days ago) and then switch all my savings into that new account at the higher rate, and repeat each March, and in April for ISA's. I have a number of 'dead' A&L saving accounts from previous years where the 12 month honeymoon ends and I have to empty the account to avoid being paid peanuts in interest.
If you don't want that hassel might be better choosing one with a lower rate but which you don't have to service in this way.
Four Cofffee said:
RDE said:
I have an ISA with Halifax that is earning close to bugger all money now and I haven't deposited any for a while. Santander and Alliance & Leicester are offering decent rates on ISAs now, but I am unsure whether I can transfer from Halifax to one of these, or if not, open a new ISA account with either of the aforementioned and pay into it from a different savings account.
I don't quite understand the rules fully and am concerned that i've thought about this at the wrong time of year to do something about it.
I am not sure they latest offer allows transfers in? Can you apply online? I thought it was a branch only ISA?I don't quite understand the rules fully and am concerned that i've thought about this at the wrong time of year to do something about it.
What A&L do every year is offer a top rate for IAS's, which is comprised of 1% interest and a 12 month 'bonus' of 2.5%. At the end of 12 months it reverts to 1%. They do the same with their savings accounts and keep changing the names to confuse it all ( Saver, saver plus, Internet saver,etc).
Looking at it cynically, they depend on the inertia/hassel factor of having to open a new acount at the end of the 12 months to bgt your money then pay you 1%.
Every year I have to open new savings accounts with them ( did it a few days ago) and then switch all my savings into that new account at the higher rate, and repeat each March, and in April for ISA's. I have a number of 'dead' A&L saving accounts from previous years where the 12 month honeymoon ends and I have to empty the account to avoid being paid peanuts in interest.
If you don't want that hassel might be better choosing one with a lower rate but which you don't have to service in this way.
I'm in a similar situation to the OP where I am just about to open a Barclays 3.1% ISA but still have £3,600 in this years Natwest e-ISA which will revert back to 0.5% in April. The Barclays one won't allow transfer so what should I do with the NAtwest money?
Moley RUFC said:
I'm in a similar situation to the OP where I am just about to open a Barclays 3.1% ISA but still have £3,600 in this years Natwest e-ISA which will revert back to 0.5% in April. The Barclays one won't allow transfer so what should I do with the NAtwest money?
Transfer it to someone who does.Ribol said:
T0M said:
I'm sure it was 3.5% the other day though...
It was, they have obviously realised they were "giving too much away" - where else are you going to go with new money, even at 3.2% 
andy ted said:
Ribol said:
T0M said:
I'm sure it was 3.5% the other day though...
It was, they have obviously realised they were "giving too much away" - where else are you going to go with new money, even at 3.2% Ribol said:
andy ted said:
Ribol said:
T0M said:
I'm sure it was 3.5% the other day though...
It was, they have obviously realised they were "giving too much away" - where else are you going to go with new money, even at 3.2% andy ted said:
Ribol said:
andy ted said:
Ribol said:
T0M said:
I'm sure it was 3.5% the other day though...
It was, they have obviously realised they were "giving too much away" - where else are you going to go with new money, even at 3.2% Ribol said:
andy ted said:
Ribol said:
andy ted said:
Ribol said:
T0M said:
I'm sure it was 3.5% the other day though...
It was, they have obviously realised they were "giving too much away" - where else are you going to go with new money, even at 3.2% Just had a look on their website and they are doing the variable bonus including switching but at 2.75%... I think that can be beaten elsewhere
Edited by andy ted on Wednesday 31st March 09:54
I have just looked at the other A&L 'deals' and many are the same, with a 'bonus' which ends in 12 months so you have to open a new account each year. As they sometimes limit the amount you can pay in to 'bonus' ISA to that years allowance your previous years allowances are stuck.
That new 3.2% deal is indeed branch only.
Screwed over at every turn.
In reality the only reason to put money in a cash ISA at the moment is to get it in the wrapper ready for when the rates go up. Otherwise I would let it 'rest' in my daughters intelligent mortgage account so she could get the benefit because I am sure as hell not getting any.
That new 3.2% deal is indeed branch only.
Screwed over at every turn.
In reality the only reason to put money in a cash ISA at the moment is to get it in the wrapper ready for when the rates go up. Otherwise I would let it 'rest' in my daughters intelligent mortgage account so she could get the benefit because I am sure as hell not getting any.
Edited by Four Cofffee on Wednesday 31st March 12:37
On the topic of ISAs, looks like my existing Bradford and Bingley ISAs (about 10 years worth - which were earning hefty benefits each year) have been moved into a SUB-Standard Santander ISA this year post-rebrand.... £50 interest is certainly not what B&B were giving
So the question is... where do I stand on this? Should I have "noticed" this unfair transfer? or is it simply down to me now to look for better offers elsewhere and transfer my entire ISA empire?
Rgds
Jonathan
So the question is... where do I stand on this? Should I have "noticed" this unfair transfer? or is it simply down to me now to look for better offers elsewhere and transfer my entire ISA empire?
Rgds
Jonathan
To save making a new topic on this-quick question.
Now that we're into the new tax year, can I invest the new year's allowance into the account I opened in the last financial year, or do I have to open a new one for every tax year?
Surely you must be able to subscribe to the old one, it's going to cause me some hassle with my stocks and shares ISA if not.
Now that we're into the new tax year, can I invest the new year's allowance into the account I opened in the last financial year, or do I have to open a new one for every tax year?
Surely you must be able to subscribe to the old one, it's going to cause me some hassle with my stocks and shares ISA if not.
Thou said:
To save making a new topic on this-quick question.
Now that we're into the new tax year, can I invest the new year's allowance into the account I opened in the last financial year, or do I have to open a new one for every tax year?
Surely you must be able to subscribe to the old one, it's going to cause me some hassle with my stocks and shares ISA if not.
You can with Cash ISAs - the application form mentions agreeing to ongoing subscription so you can simply deposit more money without having to worry about opening a new account.Now that we're into the new tax year, can I invest the new year's allowance into the account I opened in the last financial year, or do I have to open a new one for every tax year?
Surely you must be able to subscribe to the old one, it's going to cause me some hassle with my stocks and shares ISA if not.
Not so sure about Stocks and Shares - I don't think there's any legal barrier but their might be technical barriers at the provider. Best to ask them.
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