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  • rl1
    rl1 Posts: 98 Forumite
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    I have old ISA's in several different places. Can anyone tell whether the interest rate on these old ISA's will be the same as the banks concerned are advertising for new ISA's after April? Hope this question makes sense.
  • 10_66
    10_66 Posts: 3,269 Forumite
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    johncolescarr wrote: »
    Hi,

    Can anyone help me, I have a cash ISA with Egg at 6.05%. Interest is paid annually on the annaversary for the account opening, which is in August. If I transfer the ISA to a new, better paying ISA account, will I loose my interest I could earn if I hold onto the account til August. I understand that most ISA accounts pay interest annually. For clarification, I have held the account for less than 1 year

    If you transfer all of the funds out of this to a new ISA, the interest earned up to closure will be added to the amount the old ISA manager transfers to the new ISA manager. You'd need to check old T&C to make sure there aren't any penalties for transferring out.
  • 10_66
    10_66 Posts: 3,269 Forumite
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    rl1 wrote: »
    I have old ISA's in several different places. Can anyone tell whether the interest rate on these old ISA's will be the same as the banks concerned are advertising for new ISA's after April? Hope this question makes sense.

    Not necessarily. Unfortunately, banks etc have a habit of introducing new ISA's each year with different rates to entice new savers. Best to check the names of the ISA accounts you hold and check their rates with the banks you hold them with.
  • rl1
    rl1 Posts: 98 Forumite
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    Thanks, that is what I suspected. I find it really difficult every year to decide which ISA to open as they all seem to start off with a decent rate and then drop it after a few months. If I choose one with a good rate can I transfer all the others into it without it counting as this year's allowance. Is it better to do that than leave them scattered around?

    Can you tell I'm completely ignorant about this?:D
  • 10_66
    10_66 Posts: 3,269 Forumite
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    As long as the new ISA provider permits transfers in, then it’s ok to open a current year’s ISA with up to your £3,000 limit (£3,600 from next tax year) and transfer your previous years’ ISA’s into it. If you’re going to do this, check with your current ISA provider to see if there are any penalties for transferring out. It really depends on what the interest rates are as far as whether or not it’s best to transfer all into one. However, if the total of all your ISA’s exceeds the £35K that’s protected by the Financial Services Compensation Scheme, I wouldn’t exceed that amount with one company.
  • davidl_2
    davidl_2 Posts: 35 Forumite
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    My advice would be that if you currently have an ISA earning at least 5.5% then its not really worth moving, especially right now with the possible further cuts in interest rates. I think that the best thing to do right now is to go for a fixed rate ISA for at least 1 year, as interest rates are likely to fall rather than increase over that period. But get in quick! I just applied for the Halifax Fixed rate ISA which was 6.3% 2 weeks ago and is now about 5.8%! I didn't deposit the money before the rate cut so I have lost out on that.

    I now plan to go for the Nationwide Fixed rate ISA for 1 year, at 6.15%. You can transfer in/out. They also have Flex Account which is great for cutting the charges out whilst spending abroad.

    Once you've deposited into the ISA, put any other cash into ICICI, which has its rate secured until 2009. thats 6.41, plus they have 6-month and 1-year fixed bonds for 6.85%.
  • tradetime
    tradetime Posts: 3,200 Forumite
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    I just applied for the Halifax Fixed rate ISA which was 6.3% 2 weeks ago and is now about 5.8%!
    Yes, I caught that one but it must've been close because the rate was down on their website the day after I did the application, luckily I had enough in another account with them so I was able to cover it as part of the application. The Lloyds fixed rate is attractive if you have an elligable £9000.
    Hope for the best.....Plan for the worst!

    "Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown
  • 10_66
    10_66 Posts: 3,269 Forumite
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    davidl wrote: »
    I just applied for the Halifax Fixed rate ISA which was 6.3% 2 weeks ago and is now about 5.8%!

    Halifax Fixed Rate ISA dropped to 5.50% a day or two ago. A drop of .90% within a month.
  • ianian99
    ianian99 Posts: 3,095 Forumite
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    amber911 wrote: »
    here this might help

    http://www.spamspamspam.com


    spam reported
  • medman
    medman Posts: 325 Forumite
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    Hi
    does anyone know if there is an ISA provider who will pay the interest monthly to be drawn as income. This is for my FIL who uses his capital to generate income.

    many thanks

    MM
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