Confusion about savings

astralcars

astralcars

astralcars

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I'll be starting work for the first time soon, so just doing some planning.

I currently have a few thousand pounds in a mini isa and a similar amount in a FTSE tracker within maxi isa wrapper. Now I think you're not allowed to save in both a maxi and mini isa in the same tax year, but the interest rate on the mini isa is currently pretty poor. I was wondering whether a transfer of funds from my current mini isa into a better one would count as a form of savings, preventing me from using the maxi isa this year. That would be a shame, as I was hoping to use all of my maxi allowance.

Any thoughts appreciated :)
 
erm....ask your bank?

honestly thou, a few thousands, the difference in interest for that relatively small amount doesn't make much of a difference anyway.
 
Raymond Lin said:
erm....ask your bank?

honestly thou, a few thousands, the difference in interest for that relatively small amount doesn't make much of a difference anyway.
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I don't agree. Obviously if you're rich the relative saving wouldn't matter much, but ISAs return a good amount of cash - though I'm not sure how the FTSE trackers work.
 
astralcars said:
Yup, would do but thought someone who's transferred funds before may have a quick yes/no answer saving me trip into town.
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Why don't you call them? Might be easier.

I'd also have a look on Motley Fool, etc.
 
IIRC you can invest up to £3k in a mini (cash) isa and up to £7k in a maxi isa in a tax year. However, even in a maxi the limit is still £3k on cash I believe.

I'm not an expert though so I'd do some proper research.
 
Each year you can save 7k in ISA's, this can either be made up of

a) A 3k mini cash isa + 4k mini stocks/shares isa
b) a full 7k maxi stocks/shares isa.

i know for certain you can transfer funds from different stocks and shares isa's you own into a single account. But i'm not sure if you can transfer the money from a mini cash isa into a stocks type one. Ask your bank :)

btw, i put 7k into a ftse 100 tracker isa 2 years ago and it's now a healthy 9.5k. Remember to specify them to reinvest the dividends back into more shares in the tracker if you don't need an income from it. In the long term you'l lbe glad of the compound interest.
 
I save quite a bit per year. I move mine around different savings accounts every 6 months or so to take advantage of their introductory offers (a kind of reverse rate tart ;)). Compounded over many years it can indeed make quite a difference :)
 
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