My Isa

[smurfchops]

My fixed rate ISA comes to an end on 1st October and I want to renew it, otherwise it will revert to a lower rate. Do I have to get in touch with them before that date, or can I ring them, say, on 2nd October?

[calda49]

From previous experience I have found the provider usually contacts you before the finishing date, asking what you wish to do. They tend to give a list of their products available, or otherwise offer to put it in a holding account which pays very little interest. I suggest to shop around before hand to see what you wish to do, and let them know your preference. You do not have to stay with that provider, you can transfer to where ever you like, and as little or as much of the capital as you wish. I would suggest if you have not heard a week before the termination date that you contact them.

[New Judge]

As with other products, Fixed Rate ISA interest rates are on the way up. The best one year fix I can see at present is Paragon Bank at 2.61% (I would not go longer than 12 months at the moment because rates are bound to rise).

You should bear in mind that you can earn £1,000 in interest income free of tax. If this ISA was your only source of interest income you could have £38,300 in it and remain below the £1,000 threshold. Many savers are choosing to take a fixed rate (non-ISA) bond where the rates are better. The best one year bond I can find is about 3.3% at the moment. But you must remember that if you withdraw your money from your ISA you can only open a new ISA up to £20,000 in the current tax year. You cannot "re-ISA" the withdrawn money apart from that.

[Canary42]

/// I would suggest if you have not heard a week before the termination date that you contact them.///

Yes, I also would recommend that course of action.

[davebro]

They should get in touch with you & set out your options. Pending your decision they will put the cash into a savings account paying a low rate of interest once the ISA ends.

[davebro]

BTW - I have deliberately kept my non-ISA cash savings in accounts paying below £1000 pa interest so as not to get involved with the dreaded HMRC.
This will become more difficult if interest rates rise appreciably.
Qu - is there a short cut way of declaring & paying tax on interest without having to complete a full return or is stocks & shares a better option? (I wish I didn't have all this money!).

[davebro]

or just spend it!

[smurfchops]

I have had a letter reminding me, but I just wondered whether I could leave arranging it until 2nd October or should I do it before.

[gingejbee]

You need to let them know BEFORE (at least a few days before) it matures.

[weecalf]

Had been told that 10,000 quid earned 1 pound last year With ISA