Looking for ISA advise if possible?

Discussion in 'General Chat' started by Fat_Tony, Apr 7, 2016.

  1. Fat_Tony

    Fat_Tony
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    HI folks

    I realise financial advice can be a bit tricky, but I've just had to ring the bank to clarify what my ISA maturing meant so its all new to me. Probably looking for general advise rather than anything to specialist.

    My Santander ISA is about to mature, it was 2.3% and the new rate they have offered is 1%

    I don't really want the hassle of changing, as I do all my personal and business with Santander but it seems quite a big reduction.

    How easy is it to move an ISA to another company and does anyone know any decent rates going at the moment? I understand I've got to get it sorted before June so wanted to start making a few enquiries now. Im happy for the money to be locked in rather than accessible and have always avoided anything where the money is at risk, just looking for the best returns without it ever being possible to get less than I started with

    Any tips or pointers would be appreciated

    Thanks
     
  2. hippo99

    hippo99
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    Easy.
    You just need to check that the new ISA allows transfers, & you're sorted.
    When you open the new ISA (that allows 'transfers in') with a new provider, as part of the application process they will ask IF you want to transfer in funds from another ISA and how much (you can transfer as little or as much as you want).
    Just fill in the details of your current ISA on the application, and the funds will be transferred into your new ISA.
     
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  3. gg13533

    gg13533
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    Very easy to do. Just go on line to say Aldermore who have a 1 yr fixed ISA for 1.5%, open it and ask them to transfer in you Santander ISA. They do all the work for you. I'm in the same boat with a Santander ISA maturing in June but I'll wait till nearer the time before looking for the best deal.

    If your's doesn't mature till June, then you need to ensure that if you open one now and ask them to transfer, that you confirm to them the date the Santander ISA matures so that they don't ask for it early and you get penalised and lose interest. The key thing is not to close the Santander ISA otherwise the money will lose it's ISA status
     
  4. Fat_Tony

    Fat_Tony
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    Thanks chaps, thats very useful

    Is it quite a quick process then? Im happy to wait until nearer the time and Santander even told me they might improve rates nearer the deadline. I should know about th is stuff anyway so its useful to gather the info.

    Ive not heard of Aldermore, and a few names mentioned on money saving expert were not exactly high street names either - I take it this isn't a problem and they are all regulated by the same rule with the same safety nets etc?

    Thanks again
     
  5. gg13533

    gg13533
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    Aldermore is one of the new "challenger"banks (Paragon, Charter etc). They all have the full £75k UK bank protection, so are quite safe.
     
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  6. booyaka

    booyaka
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    said that about Icebank etc and look what happened! - To be fair, I had my ISA money with them and was covered and paid out inside 3 weeks!
     
  7. russ123

    russ123
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    I opened a 3yr with Aldermore earlier today online and was very simple. Just put in name, a/c and sort code of the old ISA and they do the rest. Rate is 1.85%. In the worst case, as they are a UK bank I don't think you should even have to wait as long as the 3 weeks mentioned above.
     
  8. Steve N

    Steve N
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    With the pathetically low interest rates currently available I've decided to take the gamble and try an Investment (Stocks & Shares) ISA.
    I delayed with last years (April 15 - April 16) allowance until the last minute but took the plunge 3 days ago on the 4th April.
    I went for a Managed Fund as I haven't any idea about choosing my own investments and will probably do the same when two cash Isa's mature next month.

    Be interested to hear experiences of others who hold investment ISA's
     
  9. Fat_Tony

    Fat_Tony
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    Ive always been adamant I wouldn't risk any money. I don't expect to much other than a safe place to keep it but I couldnt cope with being told one day I suddenly owned a lot less than yesterday through no fault of my own.

    All that said, I might give it a try on a small scale and see how it goes. Steve N could you possibly posts link to who you went with so I can read up on it? Thanks
     
  10. Steve N

    Steve N
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    Difficult to know where to start as I've been reading everything I can for months now.
    Found good basic info on Index Trackers here:
    How to find the cheapest and best index tracker funds

    And info on ready made Managed Portfolios here:
    Ready-Made Portfolios - Hargreaves, Fidelity & Nutmeg - 7 Circles
    You will see there are 3 big boys in this field; Hargreaves Lansdown, Fidelity and Nutmeg.
    I decided to try Nutmeg as their fees were about half that of HL but their recent historical performance was similar if not better.
    Also Nutmeg review/adjust portfolios weekly (if necessary) whereas HL do it every 6 months.
    Also Nutmeg allow you to change your portfolios risk level whenever you want on-line with no hassle or fees whereas HL require you to sell your portfolio before opening a new product at a different risk level.
     
  11. Fat_Tony

    Fat_Tony
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    Thanks ill have a good read through,

    Im thinking of taking a similar approach as I do with daft footy accumulators, i.e. only risk what I'm prepared to lose.
     
  12. hippo99

    hippo99
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    All ISAs are tax free.
    If you withdraw the money or move it to a non-ISA account, then it is no longer tax free.
     
  13. busterbenny2001

    busterbenny2001
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    Problem is isa rates are so pathetic, with the new interest tax allowance better off wacking in a santander acc and getting a decent return tax free
     
  14. Fat_Tony

    Fat_Tony
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    We already have a couple of 123 accounts which are superb but im not sure we can get more.
     
  15. busterbenny2001

    busterbenny2001
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    We have 3 1 each and a joint thats the max i think
     
  16. Steve N

    Steve N
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    Same as me :smashin:
    I've got two and the wifes got one.
    They've changed their rules a while ago to what buster has:
     
  17. imightbewrong

    imightbewrong
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    Yes a cash ISA doesn't make that much sense currently. You really need shares to make it worthwhile/interesting, especially with the new tax relief on savings.

    Some people go for dividend shares/funds where you don't think about the share value so much as picking solid dividend yielding companies - and hope they keep yielding dividends :)
     
  18. domtheone

    domtheone
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    True.

    There are (or were) several large caps with great yields.

    Could double (assume 0% capital growth) your money in about 12-13 years.

    Not sure what capital (cash) + 1% ISA interest :rolleyes:, compounded for the same amount of time, returns but defo isn't going to double your money:D

    Of course rates could go up soon but they were saying that 5 years ago and the country is still f****d:facepalm:
     
  19. pault2007

    pault2007
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    I've got a 2-year fixed Cash ISA that matures on the 23rd May. Do I have to wait until this date before transferring in to an ISA with another bank? The ISA I've currently got is going to drop from 1.5% interest to about 0.5% after it matures.


    Thanks.
     
  20. hippo99

    hippo99
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    Transfer it on the 24th May after it has matured. If you transfer before it matures (even to another ISA at the same bank) you will no doubt lose X amount of interest as a penalty for not reaching the maturity date.

    Wait until 24th & the worst that can happen is you lose 1 day of interest while you're in between transferring from the old to the new ISA.
     
  21. Steve N

    Steve N
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    You have to wait until the maturity date to avoid penalty charges (reductions in interest)

    BUT - you can arrange for the transfer to another provider up to 28 days prior to the maturity date.
    So the funds are then transferred immediately on the maturity date.
    Your current (or new) provider will explain how to do this. It's not complicated.
    You will still get the lower interest until the funds have been cleared with the new provider as this normally takes a few days.
    But this is better than starting the transfer on the maturity date as the whole process can take weeks and you'll be on the lower rate all that time.

    I'm in the process of doing this now for Fixed Term Cash Isa's I have that mature on 1st May.
     
    Last edited: Apr 11, 2016
  22. krish

    krish
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    Opened Aldermore's 2 yr FR (1.75%) on Friday, not with this years allowance, as I tied that up on Wednesday with Kent Reliance (2 yr FR @ 1.65%), but transferring a just matured one from Halifax.

    Also have a Nationwide Flexclusive ISA ("Issue 9" no longer available) on a variable rate that's stayed at 1.6% since opening in October (with a transfer), and is instant access, no penalties. Might transfer this to KR or Aldermore. Have a Virgin FR ISA about to mature near the end of the month, which will also transfer to one of those two.
     
  23. SteveCritten

    SteveCritten
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    That's wrong now. The first £1000 of interest is free whatever account you invest in.
     
  24. SteveCritten

    SteveCritten
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    If you earn less than £1000 interest a year there are better savings accounts out there than ISA paying up to 3%.
     
  25. imightbewrong

    imightbewrong
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    Worth noting the tax free amount is lower if you are in the higher tax brackets.
     
  26. hippo99

    hippo99
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    Also worth noting how much you've got in savings & whether you're looking at keeping the money saved short term or long term.

    With an account paying at 3%, that £1000 tax free interest would equate to £33k.
    When interest rates eventually go back up, an interest rate of 5% would equate to £20k of savings.
    In the long term (due to interest rates going up) ISAs would be more tax efficient. Short term (ie now) other accounts can offer better returns.
     
  27. Fat_Tony

    Fat_Tony
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    So as June approaches I thought I would bump this thread and see if anyone has any other suggestions or advice. The figures for ISAs are certain not very exciting unfortunately.
     
  28. krish

    krish
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    the latest cash ISA interest rates are at their sh*ttiest ever
     
  29. Fat_Tony

    Fat_Tony
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    Definitely, whats the best alternative without risking the money?

    Thanks
     
  30. hippo99

    hippo99
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    Leicester to win Premier League 16/17 season :rotfl:

    (25/1 odds)
     
    Last edited: May 18, 2016

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