Santander 2 Year Fixed ISA experts?

Shicky

Shicky

Shicky

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So at the start of this tax year I used my full allowance on a santander 2 year cash ISA. Here are my retarded questions:

I can't touch the money that's in there until the two years are up, or at least I don't want to. When it has been in two years - it will switch to some crap rate I'm sure. In order to get it out I need to transfer the ISA to wherever I want (without withdrawing)?

I'm assuming I have an allowance this year, am I allowed another cash ISA elsewhere or is my allowance already been used by the 2year ISA? If correct and I can't open another ISA, after that 2 year period - I can still only have one 'active' cash ISA, the amount of which will be in it, will be determined by that years allowance?

sorry for the dumb questions, just a little confused
 
Never withdraw the money. Else you will lose its tax 'wrapper'

You MOVE an Isa via filling out a form, then the bank/building society transfers it for you.
 
You can open another ISA with another provider but can only pay into one ISA per tax year. At the end of your 2 year period your new ISA will probably have a crap rate too. You can then open a new ISA and transfer both the previous ones in keeping the whole lot tax free.

/Salsa
 
I dont tihnk this product is worth it - the extra interrest over the flexible 1 year product isn't enough to give up the flexible terms for.

The Direct Isa Issue 1 looks a better product despite the lower interest rate.
 
I'd go with what [TW]Fox said, the increase doesn't look worth it, especially with rates as low as they are now. I only did a 2 year one last year because i managed to find one at 4.1% and didn't ever see rates getting higher so wanted to lock it for 2 years just to keep the high rate... which worked out at that time to be the right choice.
 
Just put your money in Gold. You will make the entire years interest in one month..

Good op now as you may be aware, confidence in banking isnt high - which equals money pooring into Gold.
 
I was going to say it but its already been said, I wouldn't bother with the Santander product, but as its too late thats not very helpful :p.

To answer your question, you can open a new ISA with another provider and pay into that, however you can only contribute to one to the maximum of your tax-free wrapper.

I wonder if the allowance will be increased this year, given that there has been no news about that whatsoever I doubt it, I'd have expected rumours at least.
 
zegna said:
Just put your money in Gold. You will make the entire years interest in one month..

Good op now as you may be aware, confidence in banking isnt high - which equals money pooring into Gold.
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Pouring?

Is that why gold is down on the same point 12 months ago, and infact down on the same point 3 months ago?
 
Gold is very risky at the moment, the Cyprus bailout might prop it up for a bit, but the current trend is downwards, reinforced when you consider the world stock markets are rebounding.
 
The only issue I have with fixed rate accounts is that almost all of them stipulate that no additional contributions can be made during that year. :(
 
Not sure if this has been answered but i'll ask here anyway as it seems relevant.

At the moment I have a 2 year fixed ISA with Santander. I made the full deposit into the ISA so for this tax year I can't put anything extra in.
Now my understanding is that next month I'll get another allowance of £5640 to put money into an ISA which is fine and I understand, but what happens when my 2 year fixed ISA comes to an end? If I've already filled another ISA allowance elsewhere in the year that comes to an end am I unable to transfer that? Does that take up a years worth of ISA allowance transferring to another provider?

Sorry if I've not made much sense!
 
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Once your account matures, it will most likely be moved into one of their basic rate ISA accounts. They would have written to you on what they will be doing.

You can transfer out at any time, but you may incur a penalty charge before the account matures, so you will need to refer to the T&C. Transferring does not count towards your annual comtribution allowance.
 
R.O.S.S.I said:
Not sure if this has been answered but i'll ask here anyway as it seems relevant.

At the moment I have a 2 year fixed ISA with Santander. I made the full deposit into the ISA so for this tax year I can't put anything extra in.
Now my understanding is that next month I'll get another allowance of £5640 to put money into an ISA which is fine and I understand, but what happens when my 2 year fixed ISA comes to an end? If I've already filled another ISA allowance elsewhere in the year that comes to an end am I unable to transfer that? Does that take up a years worth of ISA allowance transferring to another provider?

Sorry if I've not made much sense!
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Every year you have £5,640.00 of which you can put into a cash ISA.

Once you have put that money in, that's it, it's in, regardless of wether it's fixed for 1 or 5 years. The following year you get the allowance again (usually slightly higher) which you can again do with what you wish.

After 5 years, you would have 5 cash ISA's (totalling circa £28k), most of which will have all come to the end of any fixed deals which you can port (at the end of each specific deal), via a special form, to a new bank/building society for any new deals.

Fixing for 2 or more years doesn't use up the following years allocation for your cash ISA allowance.

Don't forget there is the Stocks & Shares ISA allowance as well, which can go down as well as up, a well managed fund should see a reasonable return.
 
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BennyC said:
Every year you have £5,640.00 of which you can put into a cash ISA.

Once you have put that money in, that's it, it's in, regardless of wether it's fixed for 1 or 5 years. The following year you get the allowance again (usually slightly higher) which you can again do with what you wish.

After 5 years, you would have 5 cash ISA's (totalling circa £28k), most of which will have all come to the end of any fixed deals which you can port (at the end of each specific deal), via a special form, to a new bank/building society for any new deals.

Fixing for 2 or more years doesn't use up the following years allocation for your cash ISA allowance.

Don't forget there is the Stocks & Shares ISA allowance as well, which can go down as well as up, a well managed fund should see a reasonable return.
Click to expand...

So say for example, I have as you say £28k of ISA's after 5 years and they've all ended their 'special' rates and are earning a paltry amount and its just ticked over into a new tax year, would I be able to move all £28k into a new ISA (with a better rate), and still deposit an extra £5640?

Or is it a case of if the money has already been deposited into an ISA then it is free to be moved about as you wish?
 
R.O.S.S.I said:
So say for example, I have as you say £28k of ISA's after 5 years and they've all ended their 'special' rates and are earning a paltry amount and its just ticked over into a new tax year, would I be able to move all £28k into a new ISA (with a better rate), and still deposit an extra £5640?
Click to expand...

Yes.

Which is why even when rates suck, its still worth filling your allowance.
 
Guys, seems the point of my question was missed a lot due to my crap abilities at questioning I imagine.

Thank you very much to ROSSI, BennyC and TW Fox for clearing everything up in my silly brain
 
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