A Basic ISA Guide

platypus said:
Hmm, well if you can prove you were duped you could probably take your case to the financial obudsman.

However, to try and consolidate your seperate ISAs, I know my ISA allows a transfer in, so perhaps you could transfer one into the other thereby combining the two? Obviously without going over your limit.

You might find if its possible to do the above that it actually means you cannot then pay into the ISA for that tax year, but you would however have overcome the problem of having seperate ISAs. Worth looking into.
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that was something I had thought about. effectively using one isa to top up the other one. it would take 2 whole financial years to do that.

I wasn't really duped. just merley not paying attention...a definate school boy error on my part. I might just change one to a regular savings account (liable to tax) and then whack a load more in and make it a fixed term bond account.

some good rates out there for fixed year accounts at the moment.

certainly food for thought...thanks platypus.
 
lozza23_uk said:
that was something I had thought about. effectively using one isa to top up the other one. it would take 2 whole financial years to do that.

certainly food for thought...thanks platypus.
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It would, so you'd have to weigh up if the combined interest after 2 years would be worth the loss of 2 years investment. I'd hesitate it would be, if you could then move the whole ISA into one with a nice special offer, but I'll let you do the homework on that.

You're welcome :).
 
Something that's puzzled me..:

I have an ISA with HSBC - if I tried to put in more than the £3000 allowance, it won't let me - understandably because they can easily keep track of the amount.

What about opening several other ISAs with different banks/providers? How is this 'checked'? Is there some main authority from which these banks do a lookup?
 
platypus said:
It would, so you'd have to weigh up if the combined interest after 2 years would be worth the loss of 2 years investment. I'd hesitate it would be, if you could then move the whole ISA into one with a nice special offer, but I'll let you do the homework on that.

You're welcome :).
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is this something that could be done by converting into a maxi allowance? and topping up with one into the "maxi" part of a new combined one?

I will be sitting pretty until NW have sorted out all their portman stuff I reckon. then time for action! :cool:
 
aftershxck said:
What about opening several other ISAs with different banks/providers? How is this 'checked'? Is there some main authority from which these banks do a lookup?
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Well it's quite simple really, when you open an ISA you sign a legal declaration saying that you have not opened an ISA with anyone else.

Banks share information and such, they have to provide the inland revenue with your account information so that they know not to tax the ISA wrapper. If more then one bank contact them trying to flog your tax free savings..
 
lozza23_uk said:
is this something that could be done by converting into a maxi allowance? and topping up with one into the "maxi" part of a new combined one?

I will be sitting pretty until NW have sorted out all their portman stuff I reckon. then time for action! :cool:
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I'm afraid I don't know all the particulars of Maxi ISAs, and what they involve.

Mini cash-ISAs are strictly limited to £3,000 though. I guess you could buy £3,000 of shares, declare it under your wrapper and move it to the same manager as your cash ISA. Don't forget however that you cannot pay into a mini and maxi in the same year.

Again though I must stress I dont know enough about the maxi side of things. Your best bet is to talk to an IFA.
 
aftershxck said:
Something that's puzzled me..:

I have an ISA with HSBC - if I tried to put in more than the £3000 allowance, it won't let me - understandably because they can easily keep track of the amount.

What about opening several other ISAs with different banks/providers? How is this 'checked'? Is there some main authority from which these banks do a lookup?
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usually it's because you have to input your NI number and this keeps a vague track of what you are using in terms of ISA etc.
 
So if i want an ISA, whats a good one to go for?

For example, my bank offers:
- Mini Cash ISA - Opening account needs £10.
- Maxi Cash ISA - £50/month minimum.

But doesnt list the interest rates, or what it may or many not drop to after the first year?
 
platypus said:
I'm afraid I don't know all the particulars of Maxi ISAs, and what they involve.

Mini cash-ISAs are strictly limited to £3,000 though. I guess you could buy £3,000 of shares, declare it under your wrapper and move it to the same manager as your cash ISA. Don't forget however that you cannot pay into a mini and maxi in the same year.

Again though I must stress I dont know enough about the maxi side of things. Your best bet is to talk to an IFA.
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yes I suppose it would be :)

I reckon i could convert one of them to a maxi ISA next year, and use money from the other ISA to top up the 4.8k. will get on the blower to someone over the coming months.
 
BoomAM said:
So if i want an ISA, whats a good one to go for?

For example, my bank offers:
- Mini Cash ISA - Opening account needs £10.
- Maxi Cash ISA - £50/month minimum.

But doesnt list the interest rates, or what it may or many not drop to after the first year?
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You need to read the terms and conditions. Interest rates and everything will be included in that. Don't be tempted to go to your bank just because it's easier, you have to shop around.

Egg are currently offering a very good deal, as are IceSave. Go to the moneysupermarket link and search for eISAs based on whatever criteria you want.
 
Ok, for those of you who understand this more than i do.

I dont have a lot of money, and wont have for the next couple of years as i am a student.

I have about £500 savings and wont really have much more for the next few years.

Because i have so little, is it worth me even opening an ISA? OK i wont have to pay tax on my interest but on £500 a year thats pennies anyway right?

Dont get me wrong, if its still a good idea and someone can tell me why them im all for it. I just dont want to open one for the sake of it.
 
platypus said:
Then go elsewhere.
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A simple 10second search on moneysupermarket reveals:

isasearchrh7.png
 
lozza23_uk said:
it does look good actually.
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It looks decent, but bear in mind:

Other Information said:
The interest rate above is payable for 13 months from account opening. Following this the rate will revert to a variable 5.25% Gross/AER, depending on account balance.
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Whereas the Egg one for example is guaranteed at 6.05% until 2009 (so 2 years if you open now).

You need to make sure you look at what the interest rates revert too, for example if you have a high introductory amount you may find you're better off going with a lower initial one, as that won't revert so drastically.
 
What restrictions are in place on that Barclays one? I know there's a 1% bonus involved but it's a full 12 months so surely could just transfer at the beginning of next tax year and any penalty would be minimal.
 
Yucca said:
Dont get me wrong, if its still a good idea and someone can tell me why them im all for it. I just dont want to open one for the sake of it.
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You may only have a small amount, but you still pay tax. The reason simply is that you will ultimately earn more money on your savings.
 
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