Cash ISA question

#1
I've got a TSB cash ISA that i opened in Nov last year. The account blurb says i can save £3600 each tax year. Does anyone know when my tax free allowance renews on the account? Is it on the date of the account being opened or at the start of the new tax year in Apr. I cant find the answer in the account details anywhere.

Cheers,,
 
#2
The tax-free allowance runs from the New Tax Year (5 April) - so feel free to start paying in again from tomorrow!
 
#3
Cheers mate. I was just concerned about arsing my standing orders around into other areas until i can pay more in. To be honest, i'm convinced i'd earn more than i do from interest at the moment by putting the cash in premium bonds.
 
#4
Sadly a true statement - interest rates are hopeless at the moment, you're better off getting one of those "offset" accounts (like the "One Account") so at least any savings you have are effectively knocking down any mortgage balance.

I think Abbey/A&L/Santander ISA is currently one of the better ones - it pays a bonus if you leave your cash in - but it's still only around 3%...

Still the recession will be over by Christmas, so the rates are sure to go up then :(
 
#5
Barclay's Golden Cash ISA at 3.61% is about the best on offer at the moment.

That means earning £129.96 over a year if the full amount of £3600 is invested in one go.
 
#6
boney_m said:
Cheers mate. I was just concerned about arsing my standing orders around into other areas until i can pay more in. To be honest, i'm convinced i'd earn more than i do from interest at the moment by putting the cash in premium bonds.
Interest rates will be high again one day. (Although that might be a long way off.) At least if you build up your ISA savings from now on, you'll be well positioned once they do go up. (At least, that's what I keep telling myself!)
 
#7
I "cleverly" moved forty grand of cash ISA money into shares because interest rates were sh*t, just in time for share prices to collapse another 12% (although back up a bit now).

Nationwide are giving me 0.5% on my remaining cash ISA - index-linked gilts are looking like an option, although I'm such a jinx the instant I invest it'll all go belly up.
 
#8
The Telegraph recently ran an article on miserably poor cash ISA rates; that, and the low price of a good many shares, is why I went for a unit trust ISA for FY08/09, and will probably do the same this FY. It all depends on how long you want (or can afford) to keep your money wrapped up: in two years, say, with Brown consigned to history(?), the markets could be well above where they are now. Equally, but (I hope) less likely, they could be even lower - it's all about keeping your nerve and resisting the temptation to sell when times look bad.
 
#9
Democritus said:
The Telegraph recently ran an article on miserably poor cash ISA rates; that, and the low price of a good many shares, is why I went for a unit trust ISA for FY08/09, and will probably do the same this FY. It all depends on how long you want (or can afford) to keep your money wrapped up: in two years, say, with Brown consigned to history(?), the markets could be well above where they are now. Equally, but (I hope) less likely, they could be even lower - it's all about keeping your nerve and resisting the temptation to sell when times look bad.
Scarey thing from yesterday's Investor's Chronicle - you can buy a structured product which will give you 2% every three months (ie better than 8% per year) for three years with your cash back so long as the FTSE doesn't drop below 2100 8O Below that you lose 1% for every 1%.

What does this mean? There are banks and other organisations so frightened of a great depression and resultant collapse that they are prepared to pay 7.5% over base rate to secure themselves for that portion of their potential losses below 2100. F'kin hell - to break even they need about 25% below 2100.

[Okay, that isn't quite right - they can deposit your dough to pay part of the interest, but at the moment that ain't much]
 
#10
Agreed, that really is scary on the face of it, though you probably know a lot more about it than I do. But, even if the FTSE did sink below 2100, it'd surely bounce back at some point? 8O :? Well, that's what I'm hanging on to, anyway, and I've just bet £7k on it, but it's money I can afford to forget about for a few years, and of course not everbody's in that happy position. I really do pity anybody - especially pensioners - who has to rely on savings to scrape by these days. Thanks a lot, Gordon!
 
#11
boney_m said:
I've got a TSB cash ISA that i opened in Nov last year. The account blurb says i can save £3600 each tax year. Does anyone know when my tax free allowance renews on the account? Is it on the date of the account being opened or at the start of the new tax year in Apr. I cant find the answer in the account details anywhere.

Cheers,,
As several posters have already answered your annual ISA allowance starts from 5 April. I am not sure if you paid in the full amount of £3600 during the last tax year - if you did then in this tax year you can put in upto the maximum of £3600 again. One slight snag can occur if your Cash ISA is one of the 'Regular Savers' (often the ones with the highest rates of interest) and you did not start it at the very beginning of the tax year - see the guide at MoneySavingExpert for more details:

MoneySavingExpert said:
Sally Saver hasn’t done a cash ISA for the 2008/9 tax year, so she opens a regular saver cash ISA on 27 Feb 2009 with the max. £300 a month. In month three, her April money goes in, so she has effectively paid into a new 2009/10 tax-year cash ISA with the same bank, and as she’s only allowed one cash ISA a year, that’s her lot.

By the Feb 2010 the regular saver cash ISA automatically becomes an easy access cash ISA. Sally’s put £3,000 in, and still has £600 left of the year’s allowance. Yet she can simply add that to the easy access cash ISA, or transfer the whole lot to a higher payer.
 
#12
There has been a series of whispers about the allowance going up in the budget - bound to be an easy multiple of 12 - £9600, £10,800?

Of course if you are risk averse there is a way of using your full allowance by using the cash part and then sticking the stocks and shares bit into a single short dated gilt or a very conservative bond fund. Not too complicated and a way of building up bigger sums. That said, a short dated gilt isn't the same as cash, particularly if inflation goes nuts.
 

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