Associate
What is the best ISA fixed tern for 12 months please ?
Best savings account?
- Thread starter Merlin5
- Start date
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Hello all, I am a noob in the S&P 500 and want an ISA where I can invest into this (I understand an ETF is the best way). Am I best off going to Vanguard or HL, or better T212?
Long term I would be investing into it probably monthly, but may well use the full £20k allowance this year on it
Long term I would be investing into it probably monthly, but may well use the full £20k allowance this year on it
Soldato
I like Trading 212, it doesn't have commission or fees on trades or platform fees, and the combination of the 5.2% Cash ISA and the S&S ISA is good as it lets you park as cash or invest in stuff as you go. Moving money back and forth doesn't eat into your allowance on the platform as both are ISA accounts.
You can setup auto-investments as well, and you can create investment pies with splits each time you buy it, very customisable. They don't have some of the Vanguard funds but they do have the ETF's. For the S&P 500 one you want VUAG which is the accumulation version.
Due to there being no fees or commissions you can also buy into these investments with as little as £10 or more, or you can configure auto investment on a schedule.
I think HL would be more expensive to do the same sort of thing compared with T212.
Make sure you open the Stocks ISA not the Invest account, like I did by mistake. The Invest account is not an ISA one. Stocks ISA + Cash ISA is what you want.
This doesn't benefit me at all, but use promo code MSE and you get some free shares worth between £10 - £100 when you deposit something into the S&S ISA. This code is for Money Saving Expert, there is no current ref scheme for plebs like me
I got £10 worth of META which I sold as I hate them!
You can setup auto-investments as well, and you can create investment pies with splits each time you buy it, very customisable. They don't have some of the Vanguard funds but they do have the ETF's. For the S&P 500 one you want VUAG which is the accumulation version.
Due to there being no fees or commissions you can also buy into these investments with as little as £10 or more, or you can configure auto investment on a schedule.
I think HL would be more expensive to do the same sort of thing compared with T212.
Make sure you open the Stocks ISA not the Invest account, like I did by mistake. The Invest account is not an ISA one. Stocks ISA + Cash ISA is what you want.
This doesn't benefit me at all, but use promo code MSE and you get some free shares worth between £10 - £100 when you deposit something into the S&S ISA. This code is for Money Saving Expert, there is no current ref scheme for plebs like me
I got £10 worth of META which I sold as I hate them!
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I am being a noob here, but how do I move money from S&S ISA to cash ISA on the app / website?I like Trading 212, it doesn't have commission or fees on trades or platform fees, and the combination of the 5.2% Cash ISA and the S&S ISA is good as it lets you park as cash or invest in stuff as you go. Moving money back and forth doesn't eat into your allowance on the platform as both are ISA accounts.
You can setup auto-investments as well, and you can create investment pies with splits each time you buy it, very customisable. They don't have some of the Vanguard funds but they do have the ETF's. For the S&P 500 one you want VUAG which is the accumulation version.
Due to there being no fees or commissions you can also buy into these investments with as little as £10 or more, or you can configure auto investment on a schedule.
I think HL would be more expensive to do the same sort of thing compared with T212.
Make sure you open the Stocks ISA not the Invest account, like I did by mistake. The Invest account is not an ISA one. Stocks ISA + Cash ISA is what you want.
This doesn't benefit me at all, but use promo code MSE and you get some free shares worth between £10 - £100 when you deposit something into the S&S ISA. This code is for Money Saving Expert, there is no current ref scheme for plebs like me
I got £10 worth of META which I sold as I hate them!
Soldato
Burger Icon thing for the options, and then Manage Funds should let you do it.
You pick the source/destination and enter the figure you want to move
You can only trade when the markets are open here of course, if you add a buy now it will complete when the markets open, for the Vanguard funds under LSE that will be tomorrow after 8AM.
You pick the source/destination and enter the figure you want to move
You can only trade when the markets are open here of course, if you add a buy now it will complete when the markets open, for the Vanguard funds under LSE that will be tomorrow after 8AM.
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Soldato
You may want to double check, but it may be considered as an incentive bonus and not as dividends so it may not count towards your dividends allowance…
Soldato
It counts as interest earnt outside of a tax wrapper like an ISA.
Soldato
Yeah, I just googled… shame they did it that way. The cash back I get from using my cards with my bank are considered as rewards and don’t count towards my interest earned.
Associate
Ok, I have a few questions about ISAs. Anyone help out with these at all. I've tried researching, but different websites give conflicting responses.
1) Just because the interest on an ISA isn't taxed doesn’t necessarily mean it’s the best investment? For example, say a savings ISA offers 2% interest. But I find a standard savings account with 4% interest. Even taking into account that 4% would be taxed at standard rate (20%), it would still offer a better return than the 2% ISA, yes?
2) Thinking about standard savings ISAs. After year 1 can I invest ANOTHER £20k. Thus, in effect having £40k of interest tax free (and do the same for subsequent years?). So, Year 1 £20k, Year 2 £40k, Year 3 £60k etc.
3) Let’s say I have £20k in a savings ISA. The savings ISA interest rate drops. Can I take the £20k out and reinvest it into another ISA (one with a better interest rate) or would that be deemed to be investing more than the £20k p.a limit?
4) If the answer to 2 is yes - let’s say I have invested £40k. This savings ISA interest rate then drops. Can I take all my investment (£40k) and transfer all of it to another savings ISA offering a better rate? Or only £20k of it. Or maybe nothing at all until the following tax year?
Thanks in advance.
Hussman
1) Just because the interest on an ISA isn't taxed doesn’t necessarily mean it’s the best investment? For example, say a savings ISA offers 2% interest. But I find a standard savings account with 4% interest. Even taking into account that 4% would be taxed at standard rate (20%), it would still offer a better return than the 2% ISA, yes?
2) Thinking about standard savings ISAs. After year 1 can I invest ANOTHER £20k. Thus, in effect having £40k of interest tax free (and do the same for subsequent years?). So, Year 1 £20k, Year 2 £40k, Year 3 £60k etc.
3) Let’s say I have £20k in a savings ISA. The savings ISA interest rate drops. Can I take the £20k out and reinvest it into another ISA (one with a better interest rate) or would that be deemed to be investing more than the £20k p.a limit?
4) If the answer to 2 is yes - let’s say I have invested £40k. This savings ISA interest rate then drops. Can I take all my investment (£40k) and transfer all of it to another savings ISA offering a better rate? Or only £20k of it. Or maybe nothing at all until the following tax year?
Thanks in advance.
Hussman
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Soldato
@Hussman
1) Yes. Though atm cash ISA rates are very competitive with savings accounts.
2) Yes
3) Yes but don't withdraw your cash. You have to do an ISA tranfer which involves a form or two and can take a couple weeks.
4) As above.
1) Yes. Though atm cash ISA rates are very competitive with savings accounts.
2) Yes
3) Yes but don't withdraw your cash. You have to do an ISA tranfer which involves a form or two and can take a couple weeks.
4) As above.
Associate
Brilliant, many thanks. That's clear now.
Soldato
Some info today on this, more to come apparently, but they use JPMorgan Chase, Barclays, NatWest.
The 212 Cash ISA is now live!
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Soldato
Depending on your tax bracket the interest a normal savers account may not get taxed.
You're allowed 1k if your in the 20% before the remainder is taxed at 20%
£500 if your in the 40% bracket, then the rest is taxed at 40%..
£0 if your in the 60% tax bracket.
Thinking of transferring my ISA from Chip to 212.
Currently I have just under 20k in chips ISA. Was done before April so I have 20k more now as the tax year reset.
If I transfer does that allowance stay at 20k even though it already has 19k in? (meaning it can go up to nearly 40k)
How fast are bank transfers? I use chips isa for general spending and just transfer out when I want money and it's instant.
Currently I have just under 20k in chips ISA. Was done before April so I have 20k more now as the tax year reset.
If I transfer does that allowance stay at 20k even though it already has 19k in? (meaning it can go up to nearly 40k)
How fast are bank transfers? I use chips isa for general spending and just transfer out when I want money and it's instant.
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Yes, you will have your 24/25 £20k allowance as the money already in the ISA is from a previous tax year.
I have never withdrawn from T212 however, I have read it can take 3 days to withdraw. You could get around this by transferring from your ISA into invest account and then using the T212 card (now supported by Apple Pay) to spend. This spending would also qualify for 1.5% cash back.
I have never withdrawn from T212 however, I have read it can take 3 days to withdraw. You could get around this by transferring from your ISA into invest account and then using the T212 card (now supported by Apple Pay) to spend. This spending would also qualify for 1.5% cash back.
Thanks
The card is interesting but not worth it over Chase for myself. If it could act as a regular bank sure would save transferring funds around. Still have all the DD's to think about
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Soldato
I did a test withdrawal from T212 ISA to my bank, only a small figure (£12) but it arrived the next day for me. It does say that it *can* take up to 3 days, but in this case it was just 1. I'd plan around the 3 day thing though if you needed to withdraw more routinely just in case.
Soldato
if you use BACs it's really dead quick, well it is with the trading account and trading ISA. it's when you bank, like my main one doesn't support their instant bank transfer and that could take days.
I've asked for one of my ISAs to be transfered in, it's taken 4 days for my bank to receieve the message and move the cash and it's still not showing up in my T212 cash isa yet.