2010/11 isa

[matthew2riches]

Ok... this may be a little sore for this forum, apologies if it is

End of the tax year is now coming up... I have a Standard Life ISA paying 2.65%. Am I best off keeping my ISA in an ISA or moving it to a taxable account with a higher interest (obviously when tax is removed = still paying a higher rate than the ISA) (I'm confused too).

ISA is a variable rate at the moment, I'd like to find a fixed rate account of some kind. Any suggestions?

I never have got on with financial advisors so I am asking you lot first

[HeyWayne]

Luckily I do get on with financial advisors - I'm married to one.

[matthew2riches]

Luckily I do get on with financial advisors - I'm married to one.

Can I have some financial advice but not from a financial advisor please?

I obviously need something that beats the 3.5% inflation rate

[HotStuff]

Can I have some financial advice but not from a financial advisor please?

I obviously need something that beats the 3.5% inflation rate

This site is always pretty good:

Top New Cash ISAs: Earn up to 3.5% tax free for 2009/10. ...

Looks like the Alliance & Leicester is a good bet, but it's only for new money, not transfering an existing ISA.

[rustylady]

This site is always pretty good:

Top New Cash ISAs: Earn up to 3.5% tax free for 2009/10. ...

Looks like the Alliance & Leicester is a good bet, but it's only for new money, not transfering an existing ISA.

But couldn't you just close your existing ISA, draw the cash, and open a "new" ISA?

[Jeanied]

As soon as you take your money out of the ISA envelope, it becomes liable for tax and therefore you'd lose the tax free benefit. You are allowed to shift the ISA from one provider to another though, but not all providers offer this.

[HotStuff]

But couldn't you just close your existing ISA, draw the cash, and open a "new" ISA?

Yes, but you could only put a max of £5,100* into the new one, rather than if you've built up more than that over a few years and it allowed transfers you could move the lot.


* or £3,600 if you're under 50 and do it before 5th April.

[Lazgaot]

Moneyfacts are a good resource too.

Nationwide have a 3yr fixed ISA at 4.4% thats worth a look.

[murphy99]

If you have a mortgage that has an interest rate higher than what you would get from the ISA isn't it better to overpay the mortgage? Most mortgage companies allow you to get it back if you need it so its still savings!

[tamsin]

It depends how much money you have in the isa and what you are planning to do with it. Once you withdraw it you can't put it back in so if you've built up a nice sum you'll loose the benefit when interest rates do go up. If you're planning to spend it in a year anyway there isn't much benefit to leaving it in the isa in the meantime.

It also depends on the difference in interest rates. You can transfer ISAs (as long as you don't withdraw and reopen). You should be able to get about 3%, bit more if you are willing to fix for a year or two.

[Lazgaot]

It depends how much money you have in the isa and what you are planning to do with it. Once you withdraw it you can't put it back in so if you've built up a nice sum you'll loose the benefit when interest rates do go up. If you're planning to spend it in a year anyway there isn't much benefit to leaving it in the isa in the meantime.

It also depends on the difference in interest rates. You can transfer ISAs (as long as you don't withdraw and reopen). You should be able to get about 3%, bit more if you are willing to fix for a year or two.

I'd leave it in the ISA till you need it, even if the rate is quite low, you won't get taxed on it. IT sounds like you want to keep saving, so transfer it to an instant access one that ispaying about 2.75+ % if you think you'll need it at short notice, or fix it for a few years at a higher rate if not.

[Snadger]

And here's me thinking I was rich cos I had a couple of hundred under the mattress!

[coreopsis]

And here's me thinking I was rich cos I had a couple of hundred under the mattress!

Taking into account banks "virtual" money which disappears sometimes goodness knows where,you might be better with your real piggy bank under the mattress

[HotStuff]

Taking into account banks "virtual" money which disappears sometimes goodness knows where,you might be better with your real piggy bank under the mattress

Which is why you should never have more than £50,000 with any one financial institution as our wonderful Governement only guarantees you upto that amount.

[pigletwillie]

We put most of our spare savings into premium bonds. Ok you dont get interst but on our £5k we have averaged about 5% over the last 3 years and its all tax free with easy access and no tie in.