New ISA products for the new Tax year?

[leaskovski]

Hi gang, with the end of the tax year approaching us, am I wise to hold off on transferring an ISA into a better rate account until the new tax year? Will there be better products available in the new tax year, or is it just going to be the same old same old?

 

[mrmoose]

Cheshire BS have a easy access isa currently paying 2.50%. May be worth to transfer into that and see what happens in a few months.

 

[Bear]

I've been looking as well as I want to use my allowance for this year (don't currently have a cash ISA) and they are all rubbish. Virtually all of them are below inflation so you are losing money, its absolutely hopeless.

I've been looking at stocks and shares ISAs but as I've never dabbled in it, so I'm naturally a bit weary and was thinking of an investco perpetual income

 

[Kaka]

Hi gang, with the end of the tax year approaching us, am I wise to hold off on transferring an ISA into a better rate account until the new tax year? Will there be better products available in the new tax year, or is it just going to be the same old same old?

I can't see anything beating the current offerings at the moment. It depends on how much you have at the moment in the account, but other than transferring into an easy access one like mrmoose has suggested (then transferring out again should a higher rate product come along), you could also have a look at the Santander 123 current account. Whilst it isn't an ISA, the interest rates are pretty good considering it's a current account as well as an attractive cashback scheme.

 

[leaskovski]

Yeah, its an option, however you would be hit with tax on the savings.

 

[platypus]

Hi gang, with the end of the tax year approaching us, am I wise to hold off on transferring an ISA into a better rate account until the new tax year? Will there be better products available in the new tax year, or is it just going to be the same old same old?

It's not going to hurt to transfer it now, and then transfer it in the new tax year should you find a better deal, other than being more paperwork for yourself?

 

[semi-pro waster]

I've been looking as well as I want to use my allowance for this year (don't currently have a cash ISA) and they are all rubbish. Virtually all of them are below inflation so you are losing money, its absolutely hopeless.

I appreciate I'm probably pointing out the obvious but while the rates may not be especially favourable at the moment it can still be worth putting the money in now. It will depend on how long you think you will be able to leave the investment for and there is an element of a gamble regarding the rates going up in the future but given the limits on the amount you can invest in any one year if you want to build up a sizeable amount of tax free savings you need to invest fairly consistently and then switch about as/when better deals become available.

 

[Kaka]

Yeah, its an option, however you would be hit with tax on the savings.

The loss in tax could be offset by the cashback you get back, but again it would depend on your circumstances.

If you have a sizeable sum in your ISA account already, I would personally transfer it to another ISA simply to keep the TAX free status.

 

[Jokester]

Yes, get the money in now, it might not earn you much now, but in 5 years you'll have more capital in your ISA when (if) rates improve.

 

[Ahleckz]

I am looking at isas atm. Am I right in thinking I should max out the cash one ASAP, and then on the 1at April I can add another 5k,all of it being tax free?

 

[Gammawolf]

I don't wish to hijack OPs thread but its related to the topic in hand.. Is it possible or generally accepted to transfer the contents of a matured ISA into another ISA that is half way through its term (eg its a 2 year ISA, can you transfer into this?). If not, how do you go about essentially not wasting potentially months of interest while waiting to open a new ISA next tax year?

 

[platypus]

5th of April is the cut off.

 

[Tom_ed1987]

ISA landscape is currently a sea of damage limiting despair, and I can't see the rates going anywhere anytime soon. If you have <£10k invested I would park it in an easy access as suggested, or if you have been saving for something in particular now is the time to withdraw.

Flying lessons for me

 

[platypus]

First Direct have launched a 3.0% easy access rate, the downside being that you need £40K in it..

Sadly responsible savers continue to be punished, and I doubt we'll see good rates any time in the near future (5 years).

 

[Kaka]

I am looking at isas atm. Am I right in thinking I should max out the cash one ASAP, and then on the 1at April I can add another 5k,all of it being tax free?

Yes, but as mentioned deadline is the 5th of April.

I don't wish to hijack OPs thread but its related to the topic in hand.. Is it possible or generally accepted to transfer the contents of a matured ISA into another ISA that is half way through its term (eg its a 2 year ISA, can you transfer into this?). If not, how do you go about essentially not wasting potentially months of interest while waiting to open a new ISA next tax year?

You can transfer whenever you want as long as the receiving Bank/BS accepts transfers in. Transfers do not count towards your allowance. I believe there is some guideline on what is deemed acceptable on the time it takes to transfer and some Banks/BS will start paying interest once it acknowledges the transfer.

 

[cm1179]

my santander ISA (issue 9) that i took out 2 yrs ago is up soon too. it was 3.08% and it doesn't look like i can get that again. i will be using it to pay 10% off my mortgage.

 

[Wizzfizz]

I took out a Barclays ISA (Variable) last year and as it's coming to the new tax year,I'm looking to see what other ISAs are out there.

I'm thinking and would appreciate if my thinking is right.. Can I open a new ISA let's say with Santander, then transfer my current ISA (Barclays) over to them before the 6th April (new tax year) then when the new tax year starts top the new Santander ISA up with £5,760?

 

[rossk26]

I'm thinking and would appreciate if my thinking is right.. Can I open a new ISA let's say with Santander, then transfer my current ISA (Barclays) over to them before the 6th April (new tax year) then when the new tax year starts top the new Santander ISA up with £5,760?

Firstly you should check to see if the new ISA allows transfers in.

But if you have less than £5,640 is doesn't really matter, as long as you get that deposited into a cash ISA before 5th April. Then after that you can deposit up to another £5,760 for the 2013-14 year.

I've got a 2.2% cash ISA which allows unlimited withdrawals and deposits without penalty, so just in case any emergency crops up, I won't have to wait 60-90 days to withdraw without penalty.

I have another 2 regular savers as well; 4% with Norwich & Peterborough (max £250 per month) and 6% with First Direct (max £300 per month).

It's worth setting up an ISA now, regardless of the rates that are out there.

 

[Kaka]

Should be fine.

 

[[TW]Fox]

I've got a 2.2% cash ISA which allows unlimited withdrawals and deposits without penalty, so just in case any emergency crops up, I won't have to wait 60-90 days to withdraw without penalty.

Santander Direct ISA has the same terms but pays 2.5% so look at moving to that.

I have another 2 regular savers as well; 4% with Norwich & Peterborough (max £250 per month) and 6% with First Direct (max £300 per month).

These products generally suck - as you can only have, on average, 50% of the maximum invested across the year the real interest rate is 2% and 3% respectively before tax. This isn't a problem if you don't have that lump sum and are instead just dripping cash in but tbh if you are doing that then the interest isn't going to be huge anyway.