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I have two cash ISAs, each with a different bank. I've already put this year's allowance into one ISA. Am I allowed to transfer the second ISA into another ISA (which pays a higher rate) with the same bank?
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I was able to do this last year but in my case the transfer was to a fixed rate ISA (with the same bank) and there was a time limit of 60 days or thereabouts.
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Not sure! You can do a transfer in but you have to have an ISA running into which to do the transfer. Can you not move your new ISA already opened, into one paying the higher interest rate you want/like and then transfer the ISA from the other bank into it? I think you may need a face-to-face discusion in Branch. I am getting more interest, after tax, from my current account, than I would get on a tax free instant access ISA with the same bank!
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>> I am getting more interest, after tax, from my current account, than I would get on a tax free instant access ISA with the same bank!
Good point, Meldrew. At the moment ISAs are a lot faff for very little return.
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ISAs are wonderful for keeping Capital Gains tax free if (successfully) investing in ISAable shares.
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I believe that you will need to talk to the branch Mr Snail -
I cannot recall if you are retired or not but at the moment as I approach retirement I am sticking all my spare cash into my stakeholder pension fund up to the £50 K per year allowance. I put a big lump of money in last week for last tax year.
I have a couple of ISAs just matured and they will be going into the pension next week for this tax year....I get the added value of up to 40% as pension contributions are tax free ....its got to be better than any ISA ....
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>> I am sticking all my spare cash into my stakeholder pension fund up to the £50 K per year allowance.
And some of us just wish......................
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I hope you have a long retirement to enjoy the pension :-)
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So do I ........
Just been reading the deadliest place to live thread and I must admit that I have eaten my fair share of Scotch pies in my time.......
however I worked out from the figures provided by the actuary when looking at my company scheme for the annuity that he expects me to live for another 20 years so I do hope he is correct .....
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>> I cannot recall if you are retired or not but at the moment as I
>> approach retirement I am sticking all my spare cash into my stakeholder pension fund up
>> to the £50 K per year allowance. I put a big lump of money in
>> last week for last tax year.
>>
I'm sure you're aware, but in case you're not, the pension contribution limt drops to £40k this year
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I am afraid that you are wrong Peter, its NEXT year .......( extract from HMRC website)
........,on 5 December 2012 the Government announced that for tax year 2014-15 onwards:
• the annual allowance for pensions tax relieved savings will be reduced from £50,000 to £40,000
• the standard lifetime allowance for pensions tax relieved savings will be reduced from £1.5 million to £1.25 million........
Also be aware if you have not used your full allowance in a tax year you can utilise unused allowance from the previous three years... I have discussed this at some length with HMRC and my son is a chartered accountant, it is slightly complicated to work out but foolish IMO to turn down the opportunity to make up to 40% on your money when you get sweet FA on your savings elsewhere....
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Ah OK - good news! This habit of announcing things so far in advance gets very difficult to keep on top of. I'm sure that this originally came up last year!!
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I don't know what cash ISA yields we are talking about here but they seem terribly low in general. I expect my stocks and shares ISA to yield 5.50% this year. I would like to add Chesnara (6.74% just now) but it is an AIM share and hence not ISA-ble.
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>>..
>>
>> Also be aware if you have not used your full allowance in a tax year
>> you can utilise unused allowance from the previous three years...
>>
No, you can only carry forward an unused allowance from previous years if you HAVE used your allowance in this year.
You fill up your allowances working backwards, starting with this year. You can't allocate a contribution to a previous year unless all the subsequent allowances have been used.
There is another dodge you can use once, I am advised. Notify your provider that you are changing your pension year by bringing forward the end date to a few weeks before the end of the tax year. Then you can squeeze in an extra "year", because contributions are allocated by pension year but tax relief given by tax year.
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Yes Cliff , carry forward was the expression used by HMRC guy I was talking to , I worded it badly but the gist is still the same ... use as much of your tax free allowances in your pension fund as you can...... and don't die young........
That is a nice little dodge regarding pension and tax years ..... I will investigate forthwith ( or might even try to maximise it and investige it fifthwith or sixwith :0)........
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So... my old work pension fund seems to deplete every year by a good few lunches for the bean counters.
And the cost of the annuity it buys goes up each year - someone said the other day that you only get £3k pa per £100k now.
Where would I invest additional pension money to ensure I got a good lump of it back? (I'm 57).
(As it happens I've been wrangling with this, as I have been contracting this year and have a good lump of cash in my company, and buying a pension this year would reduce corp tax and also assist with other tax matters)
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Check in the Telegraph Finance Section best buys at the weekend Smokie but you should be able to get an annuity of around £5 K per £100 K in the pension pot...depends on your age and if you want inflation linked pension, include Mrs Smokie etc etc......Aviva , Saga and Pru seemed to be the best last time I looked. Always emphasise any illnesses when you buy an annuity,the less time you are likely to live, the more generous the annuity....
It really seems to make financial sense to me for you to start a pension and utilise pension contribution tax breaks, especially if you are a higher rate taxpayer but of course it depends on your circumstances . Do not forget the charges to set up if you use a Financial adviser.
I emphasise that this is my personal opinion and based on my circumstances and recommend you get expert advice but where else are you going to get £120 k to £140K from the taxman free if you invest £100K ?
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Hmmm... I was also looking at SIPPs, sippdeal.com report some very good returns from some of the investments you can make. Some risk there though.
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>>
>> Always emphasise any illnesses when you buy an annuity,the less time you are likely to
>> live, the more generous the annuity....
>>
Taking up smoking is a good wheeze. :)
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Talking of Isa's, I've just spent some time trying to find a decent home for existing mini cash Isa's which have just matured and are now paying 0.5 and 1.3%.Previously were 3.2% and 3.5%.
The best I can find now is 2.5% with Santander (I have a 123 c/card).
Annual Isa funding comes out of my dwindling savings. I dont bother with S & Shares Isa's because I cannot afford it. Im now thinking of cashing them in and changing the car to something a little newer. Ive already blown my entire 25% tax free lump sum from my pension (which i took aged 52) and thoroughly enjoyed driving around in it for the past 3 years! The last private pension statement told me that I would receive about 295 pints a year, at current prices, if I lived to 65. And that's several years off.
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I was in a similar position and put the majority of the cash into my pension fund but we saved some and last weekend SWMBO and I opened a joint ISA for our full allowance .
I looked around and the best rate we could get was 2.5% with Nationwide with ready access .
To get that you have to be existing main account holders and as her salary is paid in to Nationwide luckily we qualified for the account...
2.5 % is about the best so if you can find any better offers then best of luck...
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2.60% at Co-op for similar deal on 2 year cash ISA
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But there again the Co op may not be a good choice
www.bbc.co.uk/news/business-22477745
Last edited by: CGNorwich on Fri 10 May 13 at 13:00
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We have a few pounds in the Co op might have to transfer some to safer havens.But what is safe ?
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And so a media-instigated run on a bank begins.
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I hope not Alanovic the bank has been ok with us we will wait and see, can't afford to lose the few savings we have .Had to work damm hard for it.
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If it's less than 80k, then you won't lose it. Guaranteed by government. Hopefully that fact will prevent a run on this bank, which of course would precipitate its collapse, even if it wasn't going to collapse in the first place.
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If it precipitates the Coop offering better interest rates I'll be moving into it, not out of it.
If you're under £85k, it's only the UK credit rating you need worry about, not the Coop's.
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>> Guaranteed by government.
That assumption is slightly fudged on the HM Treasury website.
The FSCS is supposed to be self-funding by levies on all registered financial institutions. If it runs out of money it has to apply to the Treasury for a loan, on which it is charged interest. It is still in debt following the last round of failures:
" In Autumn 2008, HM Treasury provided loan facilities of approximately £20 billion to the FSCS in relation to the failure of five banks: Bradford & Bingley, Heritable, Kaupthing, Singer & Friedlander, London Scottish Bank, and the UK branch of Landsbanki (which provided IceSave accounts). The Treasury’s loans to the FSCS attract interest, consistent with state aid rules set by the European Commission. State aid rules ensure that interventions by national governments do not distort competition or trade within the EU, and so help to promote a level-playing field across Europe for financial services.
The Government is working with the FSCS and the Financial Services Authority to agree a credible and affordable loan repayment schedule for the £20 billion of legacy costs. Further details will be available in due course. "
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Don't think the BBC and other media have really said anything but quote the facts.
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The mere fact of there being a story in the media may be sufficient to trigger nerves in the current economic climate, which could snowball in to a run. Not that I'm saying they shouldn't publish. Just commenting on the fact.
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I really wouldn't trust the rating agencies. I seem to recall they were saying that RBOS was triple A.
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We have saved a bit more,I will give the Co op a ring on Monday and transfer some cash if we have to.Looks like the bank is in some trouble IE short of cash.
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>> We have saved a bit more,I will give the Co op a ring on Monday and transfer some cash if we have to. Looks like the bank is in some trouble IE short of cash.>>
Over dramatisation...:-) :-)
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>>If it's less than 80k, then you won't lose it.
It depends how it is deposited. If it is in a Co-Op PSB (Permanently Subordinated Bond) I fear he/I might as subordinated debt may not be covered. In any case, it rates last for a pay-out if the company goes bust. The price of these PSBs has dropped 26% today.
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"It depends how it is deposited. If it is in a Co-Op PSB (Permanently Subordinated Bond) I fear he/I might as subordinated debt may not be covered."
1 A PSB is not a bank deposit , it's a bond. i.e an interest bearing loan to the Co-Operative Society
2 All bank deposits are protected
Last edited by: CGNorwich on Fri 10 May 13 at 14:55
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Cash ISA question - Clk Sec
