Best of the Week
Most Popular
1. Next Financial Crisis Is Already Here! John Lewis 99% Profits CRASH - Retail Sector Collapse - Nadeem_Walayat
2.Why Is Apple Giving This Tiny Stock A $900 Million Opportunity? - James Burgess
3.Gold Price Trend Analysis - - Nadeem_Walayatt
4.The Beginning of the End of the Dollar - Richard_Mills
5.Stock Market Trend Forecast Update - - Nadeem_Walayat
6.Hindenburg Omen & Consumer Confidence: More Signs of Stock Market Trouble in 2019 - Troy_Bombardia
7.Precious Metals Sector: It’s 2013 All Over Again - P_Radomski_CFA
8.Central Banks Have Gone Rogue, Putting Us All at Risk - Ellen_Brown
9.Gold Stocks Forced Capitulation - Zeal_LLC
10.The Post Bubble Market Contraction Thesis Receives Validation - Plunger
Last 7 days
United States Facing Climate Change Severe Water Stress - 10th Dec 18
Waiting for Gold Price to Erupt - 10th Dec 18
Stock Market Key Support Being Re-Tested - 10th Dec 18
May BrExit Deal Tory MP Votes Forecast, Betting Market Analysis - 10th Dec 18
Listen to What Gold is Telling You - 10th Dec 18
The Stock Market’s Long Term Outlook is Changing - 10th Dec 18
Palladium Shortages Expose Broken Futures Markets for Precious Metals - 9th Dec 18
Is an Inverted Yield Curve Bullish for Gold? - 9th Dec 18
Rising US Home Prices and Falling Sales - 8th Dec 18
Choosing Who the Autonomous Car Should Kill - 8th Dec 18
Stocks Selloff Boosting Gold - 8th Dec 18
Will Weak US Dollar Save Gold? - 7th Dec 18
This Is the End of Trump’s Economic Sugar High - 7th Dec 18
US Economy Will Deteriorate Over Next Half Year. What this Means for Stocks - 7th Dec 18
The Secret Weapon for Getting America 5G Ready - 7th Dec 18
These Oil Stocks Are a Ticking Time Bomb - 7th Dec 18
How Theresa May Put Britain on the Path Towards BrExit Civil War - 7th Dec 18
How easy is it to find a job in the UK iGaming industry? - 6th Dec 18
Curry's vs Jessops - Buying an Olympus TG-5 Tough Camera - 5th Dec 18
Yield Curve Harbinger of Stock Market Doom - 5th Dec 18
Stock Market Crashed While the Yield Curve Inverted - 5th Dec 18
Global Economic Outlook after Trump-Xi Trade War Timeout - 5th Dec 18
Stock Market Dow Plunge Following Fake US - China Trade War Truce - 5th Dec 18
Subverting BREXIT - British People vs Parliament Risks Revolution - 5th Dec 18
Profit from the Global Cannabis Boom by Investing in the Beverage Industry - 4th Dec 18
MP's Vote UK Government Behaving like a Dictatorship, in Contempt of Parliament - 4th Dec 18
Isn't It Amazing How The Fed Controls The Stock Market? - 4th Dec 18
Best Christmas LED String and Projector Lights for 2018 - Review - 4th Dec 18
The "Special 38" Markets You Should Trade ebook - 4th Dec 18
Subverting BrExit - AG Confirms May Backstop Deal Means UK Can NEVER LEAVE the EU! - 3rd Dec 18
The Bottled Water Bamboozle - 3rd Dec 18
Crude Oil After November’s Declines - 3rd Dec 18
Global Economic Perceptions Are Shifting - Asia China Markets Risks - 3rd Dec 18
Weekly Charts and Update on Equity Markets, FX Trades and Commodities - 3rd Dec 18
TICK TOCK, Counting Down to the Next Recession - 3rd Dec 18
Stock Market Key (Short-term) Support Holds - 3rd Dec 18
Stocks Bull Market Tops Are a Process - 3rd Dec 18
More Late-cycle Signs for the Stock Market and What’s Next - 3rd Dec 18
A Post-Powell View of USD, S&P 500 and Gold - 2nd Dec 18
Elliott Wave: SPX Decision Time Is Coming Soon - 2nd Dec 18
Junior Gold Stocks Q3’18 Fundamentals - 1st Dec 18
Little-Known BDC Stocks Thrive Amid Rising Rates and Earn Investors +7% Yields - 1st Dec 18
Ray Dalio: This Debt Cycle Will End Soon - 1st Dec 18
Bank of England Warns UK House Prices 30% BrExit Crash! - 1st Dec 18
Gold Fundamentals Improving but Not Bullish Yet - 30th Nov 18
What the Oil Short-sellers and OPEC Don’t Know about Peak Shale - 30th Nov 18
Global Economic Perceptions Are Shifting Imnplications for Stock Market - 30th Nov 18
The US Economy is Getting Worse. What this Means for Stocks - 30th Nov 18
Trailblazers Leading the Way in Online Reputation Management - 30th Nov 18
The Shift in Trend from Physical Printers to Online Printers - 30th Nov 18
UK House Prices 2019 No Deal BrExit 30% Crash Warning! - 30th Nov 18
Stocks Rallied, New Uptrend? - 29th Nov 18
The Fed Will Probably Stop Hiking Rates in 2019. What’s Next for Stocks - 29th Nov 18
Love. Fear. Inflation. A Precious Metals' Trifecta - 29th Nov 18
GBP/USD – Double Bottom or Further Declines? - 29th Nov 18
Stock Market Santa Rally Still a GO to Dow 27,000? - 29th Nov 18
UK Government and Bank of England BrExit Economic Armageddon Propaganda - 29th Nov 18
Why the Crude Oil Price Collapsed to $50 - 28th Nov 18
Gold Joins the Decline – the Earth is Shaking - 28th Nov 18
Watch This Picture As Asset Prices Fall - 28th Nov 18
GE’s Stock Price Crash Holds an Important Lesson About Investing - 28th Nov 18
5 Rules for Successful Trading - 28th Nov 18
Dollar Trend Imposes: EURUSD to Fall to 1.11 - 28th Nov 18
Gold, Original Money, Fiat Money - 28th Nov 18
When Will the Stocks Bull Market End? - 28th Nov 18
Looking ahead: Why the Smart Money is Investing in Green Energy - 28th Nov 18
The Yield Curve Will Invert Soon. What’s Next for the Stock Market - 27th Nov 18
Silver Trading and the Hands of a Broken Clock - 27th Nov 18
What's Inside SMIGGLE Christmas Advent Calender 2018 - 27th Nov 18
Investing in Recession Proof Trailer Parks - 27th Nov 18
The Advantages and Disadvantages of Debt Consolidation - 27th Nov 18
GDX, This Most-Hated Stock Could Return You 140% in Just a Few Months - 27th Nov 18

Market Oracle FREE Newsletter

How You Could Make £2,850 Per Month

Best Cash ISA Tax Free Savings Accounts for the New Tax Year and Cash ISA Rules

Personal_Finance / Savings Accounts Apr 04, 2007 - 07:59 PM GMT

By: Shahla_Walayat

Personal_Finance

The New Tax year is virtually upon us and nearly everyone over age 16 has a fresh £3000 allowance to add to their tax free Cash ISA accounts.

But first, if you have not already used your £3000 cash isa allowance for the 2006-07 tax year, then today (5th April) is your last day ! probably the easiest way would be to top up your existing Cash ISA which you should be able to do over the phone or at the branch.


A quick Summary of Cash ISA Rules

  • The CASH ISA accounts are TAX FREE, and do not have to be entered onto any tax returns.
  • The Allowance for 2007-08 is £3000, this is set to rise to £3,600 for 2007-08.
  • You can only open ONE New cash isa per tax year, and you can add new monies to One Cash Isa per tax year (see transfers).
  • You do not have to open a Cash ISA with your existing provider, i.e. you can open an account at different providers every year.
  • Most providers allow for transfers in. And ALL should allow you to transfer out.
  • Once you withdraw from a Cash ISA you cannot then then re-deposit into. The £3000 limit refers to total deposited, and not maximum account balance. So if you deposit £3000, and withdraw £1000, then you cannot re-deposit that £1000 in the same tax year as you have used up your £3000 deposit limit.
  • To maximize your tax free interest, it is best to open your account at the start of the tax year.

The following are a selection of the current top Cash ISA accounts

Financial Institution Interest Rate Fixed Period Minimum £ Comments
Alliance & Leicester 8.10% Fixed £1 Requires a Premier Current Account, and includes 2% bonus
Barclays 6.50% Instant £1 Includes 1% bonus for 12months
Scarborough 6.10% 30day £1,000
Northern Rock 6.01% 1 year £500
ING Direct 6% Instant £1 Includes 1.4% bonus, - rate shown is 12 month return
Derbyshire 6% 2 years £1,000
Halifax 6% 4 years £3,000
Nationwide 5.85% 1 years £1,000 Longer fixes at same rate available
Nat Savings 5.80% Instant £1,000 Tracks the base rate +0.55% until April 2008
Halifax 5.80% 3 years £3,000 Better to go for 4 year 6% fix
Kent Reliance 5.71% Instant £1 Tracks the BOE base rate

 

Out of all of the above accounts the one that I find the most appealing is the Barclays Instant access 6.5% rate which is fixed for 12months. Which after 12months drops to 5.5%, which is still a good rate, and you always have the option of transferring the account elsewhere at that time. The best longer term fixed rate cash ISA's are the Derbyshire at 6% for 2 years and the Halifax at 6% for 4 years.

Even if interest rates do rise to 5.5%, I doubt that the 6.5% and the 6% rates shown above would be bettered, and in the meantime you will have forgone receiving interest tax free on your savings, which would negate a marginal increase in interest rates.

By Shahla Walayat
http://www.moneyforums.co.uk

Copyright © http://www.moneyforums.co.uk 2007 - All Rights Reserved

The UK Money Saving & Investing Forums is a free online publication providing, FREE Online Tools including Credit Score Calculator and the Savings Calculator . Money Saving Guides such as Credit Card Stoozing , Savings Tree , Money Saving Guide . Personal Finance Discussion Forums open to ALL, supported by experienced moderators, to discuss any personal finance topics from 0% Credit card deals , to the state of the Housing market . The best Savings & Deposit Accounts etc.

This article maybe reproduced if it is reprinted in its entirety with links to http://www.moneyforums.co.uk

Disclaimer - Moneyforums.co.uk does not guarantee the accuracy of the information provided, and does not accept any liabiliity for its accuracy, which is for general information purposes only as a starting point for your own research.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Shahla W
30 May 07, 01:34
UPDATE 29th May 2007

Some of the best Cash ISA's available post the rise in UK interest rates to 5.5% are -

Derbyshire 6.00% fixed for two years

NS&I at 6.05%

Northern Rock at 6.01% for a 1 year term

Egg at 6.05%

Norwich & Peterborough BS 2 Year Fixed Rate Mini Cash ISA - 5.90%

The deadline for the Barclays 6.5% ISA is today, so get a move on ! Go to the branch today if you want this one.


Shahla_Walayat
03 Jun 07, 09:18
Barclays Account Opening Delays

There is heavy demand for the barclays cash isa

Please take note of the following announcement by Barclays

Our Tax Beater Cash ISA was withdrawn from sale at close of business on Tuesday 15 May 2007. Instead, take a look at our other tax-free savings.

Still got your application?

If you have printed off your application form, or picked up a form in branch, and not yet returned this to us you still have time.

Existing Customers

Completed application forms can be posted to us to arrive no later than Wednesday 30 May 2007. Send your form to:

Barclays ISA

Freepost RRGK-YYAS-LTST

Barclays Service Centre

Glasgow

G58 1AA

Alternatively, you can hand in your application form at any Barclays branch no later than Tuesday 29 May 2007 and we will post it for you.

New Customers

If you are not currently a Barclays customer you will need to visit one of our branches with your identification and address verification documentation and your completed application form no later than close of business on Tuesday 29 May 2007. Details of suitable documentation are given within your application pack.

If your application is received between now and 30 May 2007, you should receive notification of your account details by the end of June.

So if they recieved your app by 29th or 30th May, then the account should eventually be opened and the interest back dated to the date of the application, even if they have not cashed your cheque.


D Watkins
05 Jul 07, 10:32
Cash ISA Query

A query. My wife and I have cash ISA's. If one of us dies then what steps do we have to take to transfer the Cash ISA to the surviving partner??


Sarah_Jones
05 Jul 07, 10:41
Cash ISA After Death

Cash ISA's cannot be transferred.

If one of you die then the cash ISA would have interest added gross upto the date of death and the account converted to an NON Cash ISA savings account, usually an instant access savings account, which would be treated inline with other assets of the estate of the deceased.


Dan Leitch
14 Jul 07, 15:06
CASH ISA after death

I believe it is possible if you are married to transfer between partners whilst you are alive though, so if one or other of you is likely to live longer then it may be worth doing that.


Nadeem_Walayat
14 Jul 07, 19:29
Cash ISA Transfer to Spouse

Hi Dan

A cash ISA cannot be transfered to another person, i.e. your spouse. You can withdraw the money from a cash isa account to transfer to your spouse who then opens a cash isa using their own annual allowance, but in the process you have lost the cash isa status on that part of the money withdrawn from your cash isa account and transfered to your spouse.

YOU can ONLY transfer a cash isa to another provider in your own name and preserve the tax free status of those funds.


Daphne Sankey
23 Jul 07, 09:36
DIRECT ISA after death of spouse

The ISA matures 06/2008. When does it become treatable as an instant access savings account?


Nadeem Walayat
23 Jul 07, 11:37
Direct ISA Maturity

The Direct ISA is already an instant access tax free savings account.

However, on death it immediatly loses its tax free status as of the date of death, and is treated as an taxable instant access savings account.


colin audley
18 Feb 09, 10:13
tax on maturity

having just retired and drawn a small private pension and was taxed on it which was,nt explained at the time of purchase does the same apply if my grandaughter cashes in her i.s.a at say when she,s 60


Richard
29 Jul 09, 04:09
ISA maturity

After a Cash ISA has run its one year as a tax free account, does it then fall back to be a normal deposit account? If so why does my bank not tell me this?!


Richard
29 Jul 09, 04:14
Stock ISA

I enveloped off part of my stock investments to be in an ISA. I think now that has gone beyond one year. Will that sum continue to be be tax exempt after the year is over or will I have to re-apply to / re-contact the investment company to have an amount put into an ISA each and every year?


Nadeem_Walayat
29 Jul 09, 07:14
Cash ISA Answers

1. Cash ISA accounts remain as cash isa accounts , i.e. if you open a 1 year fixed rate cash isa, then after 1 year it is converted to a variable rate cash isa, which you can then elect to move elsewhere, but it always remains as a cash isa account.

2. the ISA wrapper is permanent, unless you breach the terms i.e. deposit too much one in a tax year.

Remmeber the isa allowance is ANNUAL, so each year you can deposit / invest £10,200 in total


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules