We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Question Of The Week: ISA transfers
Former_MSE_Penelope
Posts: 536 Forumite
Q. For the last tax year, I had a First Direct ISA, but it won't be this year's best deal. Can I leave that one entirely alone and open a new one elsewhere for this tax year, and will it continue to accrue interest? Jacqueline, by email.
Martin's A. Yes you can, and yes it will, but that's not best practice. You can certainly open a new cash ISA with £5,100 this year; the top easy access rate is 3.2% (see top cash ISAs).
However why leave your old ISA sitting there earning a poor rate? You can transfer that to a new provider and earn over 2.7% interest with it, (see cash ISA transfers for how).
[threadbanner]box[/threadbanner]
Martin's A. Yes you can, and yes it will, but that's not best practice. You can certainly open a new cash ISA with £5,100 this year; the top easy access rate is 3.2% (see top cash ISAs).
However why leave your old ISA sitting there earning a poor rate? You can transfer that to a new provider and earn over 2.7% interest with it, (see cash ISA transfers for how).
[threadbanner]box[/threadbanner]
0
Comments
-
I've not noticed a mention of the Post Office here, but they offer a 1 year fixed rate cash Isa that will also accept transfers from other providers. Currently offering 3% interest, not a bad rate for only a one year fix.0
-
As posted in the ISA transfer forum...
Hi there...
The Newcastle BS Balance Builder is currently the best rate you can get on transfers in... if you play it right... 3.4%.
What you do is pay £4100 into your OLD ISA. Then open a Balance Builder and ask to transfer in all your old AND current ISA monies.
Then set up 10 payments of £100 per month into the Balance Builder (this is necessary to get the bonus that brings the rate up to 3.4%).
That way you are getting 3.4% on all your old ISA money AND on most of this years money for the whole 12 months.
Make sure you make the 10 payments and leave it there for the whole 12 months, swap it after 12 months into something that will pay more.
Hope that all made sense...
I'm just in the process transfering from First Direct...0 -
Looks like a good plan, but note that the 3.4% rate is variable, so may be cut before the year is up...0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.5K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.5K Spending & Discounts
- 247.4K Work, Benefits & Business
- 604.2K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards