Dream Weaver

My accountant has told me to open an mini ISA (£3k lump) before the end of the tax year, then another one/top it up after April as an tax saving pot.

However, I need to have instant access to the money, as in be able to draw on it the same day, but the ones on money extra (IF, M&S etc) all state that you have to operate the account by post - WTF is that all about? I thought snail mail was obsolete now!!

So, anyone know a good bank that does a decent mini ISA (4% plus) and where I can draw on my cash straight away? IF has internet banking, but goes on about jars, so I aasume you have to have a current account with them as well.

Business Account is with Lloyds TSB at the mo.

Jamo

iTrader: (23)

sounds like you need a mini cash isa.

I would have usually said egg is best for this, however its not in your case, because you want to be able to draw the cash as and when needed, the thing is with isa' "individual savings account" the cash is tax free, so its best to keep it in there, over the 5 year period and not actually draw it, but because you want to do this I would suggest an over the counter isa with the halifax.

egg offers a cash isa but its based on cash investments, therefore you have to sell your shares.

jamo

Dream Weaver

Thanks Jamo

The cash will be used for next years Inland Revenue payments (and as working capital), hence the need to withdraw fairly quickly - it is basically a way of stopping me spending the cash on the 205

The Nationwide seem to offer a counter ISA at 4% which seems good to me.

BexTait

I have a mini cash ISA with Halifax, and it is now instant access (over counter). I got it when Halifax suggested that I take one out cos of the amount I had in it, which is being saved up to buy a car on graduation. I've found it easy to use as I am able to withdraw money as and when I need it desparately.

albob

I have a Nationwide mini-isa. instant access/passbook, good rate, no probs. they are a 'mutual' society (i.e. - no shareholders to please), therefore rates are usually a tiny bit higher than the others....
Also the amount you can invest in ISA's will be reducing shortly - get it while u can.............

alan

AndyC_772

iTrader: (2)

DW: the whole point of an ISA is that when you've paid the money in, you don't take it out again until you really need it. Once you've paid in £3k, you can't then withdraw money and put it back again. The limit is on total deposits made, not the balance of the account. With that in mind, do you really need instant access?

I think of them as my old-age sports car fund - when I'm old and grey, I'll be glad that I put some money away in ISAs to keep me in the manner to which I'm accustomed (ie. 200bhp/ton or more!).

Tentenths

Don't be surprised if it doesn't... another example of President Tony & Co's vote marshalling - surely not

Dream Weaver

Andy, the point is to have it as a tax fund, so £3k in now then £3k in after April giving me £6k which wont be required until next Jan. Interest will be better on that £6k in an ISA than it will be in my business account.

I suppose counter access isn't completely necessary as I wont be touching it til next year, but you never know when you might quickly need some cash. I am assuming interest is paid monthly.

blair

Nope - mostly accrued on a daily basis and then applied to the ISA account at the end of each tax year.

Most over the counter cash ISA accounts offer instant access if you need it although once in the ISA the cash is probably best left there until you *really* need it as it is getting interest at a higher rate and without any tax liability.

Dream Weaver

So what happens if you take the money out after 9 months? Do you lose the interest, or just get the interest up to that date.

blair

If you take everything out and close the account you'll get the interest up to that date

Dream Weaver

Thanks chaps, great help. Off down to the Nationwide shortly to set one up.

Graz

Just got an if.com cash ISA myself. Best interest rate according to moneysupermarket and instant access You don't need a current account with them either. I will also be transferring my current ISA to them once it's setup.

Avoid egg for now, not sure they do a mini cash ISA anyway, as their financial future is looking a bit shaky at the moment. http://news.bbc.co.uk/1/hi/business/3512529.stm

Graz

Dream Weaver

Just been down to Nationwide and signed up. Quick form to fill in, then give them cheque, passport, utility bill and away we go

4% interest, and cash available over the counter if needs be.

Thanks again all.

Diesel

If you have a mortgage you are better off paying that off instead. So annoying, but I think it makes little sense to save when you are paying more interest than you will earn...! Easier done than said with a flexi mortgage of course...