Finances and the future - your plans
- Thread starter NotAGolf
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You can only have 1 ISA at any one time (well 2 - 1 Cash ISA and 1 Stocks and Shares ISA).
What you are needing to do is open a new ISA by transferring your current ISA into it at the same time (the forms will have a transfer section). Then you still have the full allowance for the current year.
Well, you could also have previous years ISA's ...
Yes you can have 2 e.g.:
2011/12
2012/13
but only one will be "active" The old one (2011/12) will not be allowed to accept funds into it if you are running a 2012/13 ISA but will still be gaining interest
Source: http://www.hmrc.gov.uk/isa/faqs.htm#8
You may end up with 10 ISA's but that will be built up over 10 years i.e. you cannot have 10 ISA accounts accepting funds in 1 year. Considering most ISA's have a better rate for the first few months before dropping to a low rate, most people tend to get a new ISA each year to benefit from higher rates.
To be clear - I am referring to CASH ISA's only as you can technically have 2 ISA's in the same year by opening a Stocks and Shares ISA.
2011/12
2012/13
but only one will be "active" The old one (2011/12) will not be allowed to accept funds into it if you are running a 2012/13 ISA but will still be gaining interest
Source: http://www.hmrc.gov.uk/isa/faqs.htm#8
You may end up with 10 ISA's but that will be built up over 10 years i.e. you cannot have 10 ISA accounts accepting funds in 1 year. Considering most ISA's have a better rate for the first few months before dropping to a low rate, most people tend to get a new ISA each year to benefit from higher rates.
To be clear - I am referring to CASH ISA's only as you can technically have 2 ISA's in the same year by opening a Stocks and Shares ISA.
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Yes but he was asking about opening 2 separate cash ISA's at the same time - 1 for new funds and 1 to transfer his old ISA into. This is not possible
Soldato
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Why not just combine, most of the time you can get an ISA that accepts transfers with almost the same rate as those that do not.
That way you open a new ISA with next years allowance and do an ISA transfer of your old one into your new one. Some accounts are offering better rates for >25k or >30k etc, your not there yet but you may be soon. I think they like these sorts of amounts as they can tell thay have a good chance you will leave it there for the year, hence they get some decent deposits at a decent interest rate compared to money markets.
Santander have just launched a 3.3% ISA that accepts transfers in, not sure if you can open now for 2012-13 tax year though
If you do consolidate your ISAs you need to get your new bank to do it for you, you cannot close the old and transfer the cash yourself.
You can HAVE as many ISAs as you want, but you can only deposit into one S&S and one Cash ISA per year.
That way you open a new ISA with next years allowance and do an ISA transfer of your old one into your new one. Some accounts are offering better rates for >25k or >30k etc, your not there yet but you may be soon. I think they like these sorts of amounts as they can tell thay have a good chance you will leave it there for the year, hence they get some decent deposits at a decent interest rate compared to money markets.
Santander have just launched a 3.3% ISA that accepts transfers in, not sure if you can open now for 2012-13 tax year though
If you do consolidate your ISAs you need to get your new bank to do it for you, you cannot close the old and transfer the cash yourself.
You can HAVE as many ISAs as you want, but you can only deposit into one S&S and one Cash ISA per year.
Thanks for the advice. It's never been anything spectacular, just a rainy day account so I should look into it really.
It's highly, highly, highly ironic that you guys go around calling pensions a pyramid scheme, and so on (Which having worked for one of the world's largest private pension providers I know a thing or two about), yet in the same breath talk about investing in possibly the biggest pyramid scheme in the UK today... the housing market.
I am patiently sitting on the sidelines, 'wasting' my money renting waiting for the whole mess to come crashing down before I pick up a nice house at way below today's prices. Everything comes to those who wait
I am patiently sitting on the sidelines, 'wasting' my money renting waiting for the whole mess to come crashing down before I pick up a nice house at way below today's prices. Everything comes to those who wait
Soldato
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As for Buy-to-let.
Here's a problem I have with it. The below figures are real average prices for my town....
Say as an example - I had aquired an average house worth £180,000 in my area 2 years ago. I can do one of two things with it.......
Sell it - and have £180,00 in the bank earning approx 3% ( an available 1 year bond ) - this gives me £5400 a year ( with me having to do absolutely nothing - not one single thing - apart from checking my interest is correct )
or
Rent it - earning an average £500 a month ( £6000 a year, of which I would have to pay the upkeep/maintenance/repair pf it - possibly find tenants every few months - pay rental insurance etc - and generally have all the hassle of finding decent tenants who will look after my house and pay on time )
Most importantly - around my area - house prices have dropped drastically - so the house that was once worth £180,000 is now worth £40,000 less than it was when I could have sold it..... and I wouldn't have had all the hassle of the Buy-to-Let rubbish.
Here's a problem I have with it. The below figures are real average prices for my town....
Say as an example - I had aquired an average house worth £180,000 in my area 2 years ago. I can do one of two things with it.......
Sell it - and have £180,00 in the bank earning approx 3% ( an available 1 year bond ) - this gives me £5400 a year ( with me having to do absolutely nothing - not one single thing - apart from checking my interest is correct )
or
Rent it - earning an average £500 a month ( £6000 a year, of which I would have to pay the upkeep/maintenance/repair pf it - possibly find tenants every few months - pay rental insurance etc - and generally have all the hassle of finding decent tenants who will look after my house and pay on time )
Most importantly - around my area - house prices have dropped drastically - so the house that was once worth £180,000 is now worth £40,000 less than it was when I could have sold it..... and I wouldn't have had all the hassle of the Buy-to-Let rubbish.
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I agree if you bought a house £180k on 0.4% yield (£7200 gross pa) you would be better off with that cash in the bank.
There are more sensible ways to make buy-to-let work to your advantage. I.E. buy on a mortgage. Property is one of the few assets that ordinary people can get leverage on, you would be better of buying using a mortgage if your looking at a long term investment, because your leveraging your income.
As a rough example, you could take that 180k cash and get two £200k~ value properties on BTL mortgages with 40% deposit up front (80k) which would bring you into the competitive interest rate bracket. The average on rental yield atm is around 5% and it's only rising because of people unable to buy, you could easily have the mortgage repayments being paid off by tenants with the low rates that are being offered, as long as you buy the right kind of property and in the right area obviously.
Over the long term that is more appealing to me right now, than having all my cash tied up in the bank earning peanuts in respect of inflation.
There are more sensible ways to make buy-to-let work to your advantage. I.E. buy on a mortgage. Property is one of the few assets that ordinary people can get leverage on, you would be better of buying using a mortgage if your looking at a long term investment, because your leveraging your income.
As a rough example, you could take that 180k cash and get two £200k~ value properties on BTL mortgages with 40% deposit up front (80k) which would bring you into the competitive interest rate bracket. The average on rental yield atm is around 5% and it's only rising because of people unable to buy, you could easily have the mortgage repayments being paid off by tenants with the low rates that are being offered, as long as you buy the right kind of property and in the right area obviously.
Over the long term that is more appealing to me right now, than having all my cash tied up in the bank earning peanuts in respect of inflation.
Yes it is possible.
edit: Care to explain how rather than just a statement?
http://www.hmrc.gov.uk/isa/faqs.htm#8
HMRC say you can only open 1 active cash ISA per year (active = putting money into from current year). I think I would believe them over a bank person.
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Transferring an ISA to a new provider doesn't count as starting a new one. You can only put new money into one cash ISA but there are no restrictions on transferring old ISAs.
I'm not saving for my retirement yet but until now we've been ploughing money into getting our house (£220k, £33k deposit) doing it up (£30k) and now we are putting a baby fund together (£10k) so that when the wife goes on maternity leave she can go back when she is ready and not when we need the money. If that means she goes back and we still have £5k left over then bully for us.
I think I'm fairly good with money in that regard.
I know that the state pension will be no good when I come to retirement but I'm 27 in a month and I'm putting my money into things that are making a difference now. I'm not just urinating it up the wall like millions of others.
I think I'm fairly good with money in that regard.
I know that the state pension will be no good when I come to retirement but I'm 27 in a month and I'm putting my money into things that are making a difference now. I'm not just urinating it up the wall like millions of others.
But £500 a month on a £180K house would be an anomaly surely. I'm currently in the process of buying a flat in Manchester for £135000 - this is for me to live in, but identical flats rent out for £750-800 a month.