The Best Mini Cash ISA Article Discussion Area

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• Well, I made it through all 19 pages of the old article and I don't think my question has been asked before.
  Can anyone tell me if my assumptions are correct in the following scenario?
  I have Ј3000 which I intend to invest in the 5.2% A&L Mini-cash ISA. However, I will very likely withdraw this money in 2007 as part of a deposit on a new house.
  I can see from the A&L website that interest is paid annually on January 1st. So, I am assuming that this means that the Ј3000 that I am investing now will earn roughly 8 months interest to that point in 2007.
  However, if I am going to withdraw this money in say April 2007, would there be any point in me leaving it there for the 3 months after January 2007?
  Should I withdraw on 2nd January 2007 and stick it in my ING a/c to accrue the daily interest until April?
  Or, will it continue to earn interest for those 3 months, but with that interest not being paid till January 1st 2008?
  Thanks.
• On account closure, the balance of interest due will be calculated and to the day prior to the date of account closure and credited to the closing balance of the account.
  So you would get interest for the 3 months to April 07 added to the balance on closure, and not have to wait until 2008, UNLESS you left the account open with Ј1 (minimum balance).
• I am no financial expert but I will try my best. The longer you keep your money in cash ISA the more it will earn interest and if you don't withdraw it the better as the taxman can't get hold of it. If you don't want to commit for a longer term then instant access savings account will be your other option such as A & L internet account 5.15% or ICICI also 5.15%. Hope this helps.
  Bisoy
• Actually I agree with Deemy, but i think there's a little confusion with Bisoys answer (no offence meant)
  Forget the whole 'annual interest' thing - that just means when you're paid it - however if you close the account you will get all the interest you were owed calculated to that date (ie you dont not get the interest just for taking it out early)
  Therefore there's no point taking the cash out and dunking it in a savings account, as you're simply going to pay tax on the interest there. Keep it in the mini-cash ISA , as i say in the article its effectively just a "tax free savings account"
  martin
• My wife & I have several mini cash ISA's with various providers - whoever was offering the best rate at the time. I feel it is now time (OK overdue) to consolidate these. The best current deal is A&L but it seems that I can only transfer previous years, not the current year. So my options seem to be either do the transfer in 2 tranches, previous years now and 2005-6 after Apr 5th, or leave the whole exercise until April. Can anyone confirm that I have got it right, and if so are there any advantages to either option?
• Query: Is it currently a good idea to use the Ј4000 Mini Shares ISA allowance left over once I have opened my Mini Cash ISA? I was considering going for a Unit Trust with a big spread of investments ie., World rather than UK markets. If so then where can I go to get clear & concise advice on choosing a good unit trust for this purpose?
  Thanks in advance for any advice offered.
• I'm about to apply for an A&L Direct ISA 2. I have Ј3000 to invest in a savings account.
  1) Why on Martin's email, does he say 'The tax year ends April 5 and if you don't use your ISA allowance you lose it'?
  2) Is this the best return I can get for saving this money over the next 12 months?
  Thanks for any help!
  Lee.
• This is true grumbler, but if I could, I would put my Ј3000 in now rather than wait until after 5th April. One might not think they will be able to fund an ISA next year, but it may prove to be possible, especially if savings can be made using the different opportunities to be found elsewhere on this website.
• My friend has saved for years to start uni.
  I suggested to her that instead of using her own money to pay fees etc, she take a loan (both tuition and maintenance) from Student Loan Company and put her savings into a high interest (5%) ISA or similar (any suggestions?).
  Question is - Do you know if her savings will accrue more interest than a Student Loan and thus be able to pay back the loan with her savings at the end of her course and cream off the extra earned interest for herself?
  Thanks for any help
• I want to open an ISA, but would probably need to withdraw the money in September this year. Would I still quality for the 0.7% A&L bonus or does that only get paid if you leave the money in until the end of April?
• One think I don't understand.
  My ISA's are with Abbey who were best last year.
  I spoke to the chap on the phone who told me the balance which included interest added, I said "of course I will be paying tax on the interest as its over and above the Ј3000 allowance" but he said no I don't pay tax on the interest either???
  Is this correct it does not make sense to me?