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MINI CASH ISA's HELP!!!!!

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grantyboy1
grantyboy1 Posts: 49 Forumite
in ISAs & tax-free savings
hi


i have a mini cash isa that i have had for a few years now i have it throught the bank of scotland now halifax bank of scotland, i have just noticed that the interest rate has plummeted to 3.75% which is 0.25% LESS than my ordinary savings account i have with HBOS.

i don't want to loose that tax free benifit but i know there has to be somthing seriously wrong with an interest rate that low on an ISA

i have aroun £8000 in it and want to do what is best for me .... any suggestions and how do i go about any change without loosing tax benifit?
Its not just a penny ... its the first step to a million
«1

Comments

  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    grantyboy1 wrote:
    ...any suggestions and how do i go about any change without loosing tax benifit?
    Simple - upgrade the account to an 'ISA Saver Direct' for 5% AER.

    Important...make sure you ask them to transfer your ISA - do not close it.
  • magentadreamer
    magentadreamer Posts: 547 Forumite
    Transferring an isa is relatively straight forward I've just transferred mine - given that it coming up to the new financial year you might want to hold fire to see what new offers are coming up. At the moment the A&L Isa appears to be the best at 5.2% -you can check it out and how to transfer etc on their web site https://www.allianceandleicester.co.uk. I think Halifax do a 5% ISA as well.
  • grantyboy1
    grantyboy1 Posts: 49 Forumite
    with the amount i have in this one can i transfer the whole amount or only the years entitlement?
    Its not just a penny ... its the first step to a million
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    grantyboy1 wrote:
    with the amount i have in this one can i transfer the whole amount or only the years entitlement?
    The whole amount.
  • steve_cov
    steve_cov Posts: 287 Forumite
    If you get your transfer in before 6 April then you can start paying your 2006/07 ISA subscription immediately too, also at your new higher rate of interest!!
    Mortgage at outset (May 2004): £80,000
    Mortgage now (October 2007): £58,000
    Original mortgage-free date: May 2024
    Expected mortgage-free date: December 2014
    Projected interest saving: £21,100
  • Deemy
    Deemy Posts: 3,683 Forumite
    grantyboy1 wrote:
    hi


    i have a mini cash isa that i have had for a few years now i have it throught the bank of scotland now halifax bank of scotland, i have just noticed that the interest rate has plummeted to 3.75% which is 0.25% LESS than my ordinary savings account i have with HBOS.

    i don't want to loose that tax free benifit but i know there has to be somthing seriously wrong with an interest rate that low on an ISA

    i have aroun £8000 in it and want to do what is best for me .... any suggestions and how do i go about any change without loosing tax benifit?

    Dirty dogs these banks arn't they ?

    How the drop the rates so that people don't notice, follow the advice above and transfer out !
  • The_Saving_Man
    The_Saving_Man Posts: 224 Forumite
    Just a quick question. Am I right in thinking that even if you used up your £3000 allowance for the 2005/6 Tax Year, you can still set up a new ISA and transfer your money into it before April 5th, so you're ready to get depositing for the new tax year?
    'Tis the time's plague, when madmen lead the blind
  • Philippa36
    Philippa36 Posts: 6,007 Forumite
    Part of the Furniture Combo Breaker
    Yes you can ~ I have been slow in transferring my ISA. Exactly the same position as you and I rang about 30 mins ago and transferred it to the higher rate ISA. It took barely 5 mins and I was told I will have a form sent out to me in about 7 to 10 days for me to sign and return.

    I will now be able to get the higher interest rate and the ISA is transferred in time for me to start paying in 06/07 allowance from April.
    “I tell you, we are here on Earth to fart around, and don't let anybody tell you different.”
    Kurt Vonnegut
  • regularsaver1
    regularsaver1 Posts: 4,930 Forumite
    This is because Halifax do 2 types of mini-cash isa's

    grantyboy1 - i presume that you must have the pasbook mini cash isa explaining why you earn 3.75%
    the other option is the isa saver direct (online and telephone) paying 5%

    all you need to do is phone them, or call into a branch to REDESIGNATE your existing account to the direct isa at 5% and then you will receive a certificate

    this will have the same roll number, and its really easy
  • grantyboy1
    grantyboy1 Posts: 49 Forumite
    thank you very much to everyone who posted i phoned the halifax and within 5 mins i was being upgraded to the isa savers direct with 5% interest. didn't realise just how easy it was to beat the tax man! thank you!
    Its not just a penny ... its the first step to a million
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