A second opinion

JimBlizz

Hi Guys,

I wonder if you could help me make a decision. I currently have the following:

HSBC Graduate Account holding around £600 (probably less by the end of the month)
HSBC Cash ISA containing just about £3080.00 (poor interest rate ~4.25% I think)
HSBC Graduate Credit Card that will soon have around £1000 on it (mainly car insurance)

Originally my overdraft was interest free up to £1000 and I had planned to use that pay of my credit card thus paying no interest.

HSBC have now cut my graduate service short (another story) I will loose the interest free overdraft. I am also going to be in the USA for a couple of weeks in October.

I am in the process of opening a Premier Direct Current Account with A&L (8.5% on first £2500 for 1 year, 0% O/D for 1 year - Agreed O/D with A&L is currently £500, I could probably get this pushed up though).

My plan is as follows:
* Move my day-to-day funds from the graduate a/c to a&l (salary etc)
* Transfer my ISA to ICESAVE
* Take out an Abbey Zero card, BT the £1000 to it and use it while in the USA. Pay off total balance by the end of 0% terms and revert back to my normal practice of paying off in full each month.

I could then close down the HSBC Credit Card but keep the Graduate (now current account) ticking over incase I want to make use of HSBC's graduate mortgage service that i've been promised i'd still be eligable for.

Does this make the most sense? Would I be better off closing the HSBC ISA and moving the cash to the A&L account paying 8.5% before tax on £2500. I could then drip feed any remaining excess cash to somewhere like kaupthing edge?

I think my brain is going to explode! :think:

P.S. I am regularly earning ~£1150/mo after tax and will usually have around £200.00 left over after day to day expenses. My ISA has had no contributions this year.

UproarUK

JimBlizz wrote: »

Does this make the most sense? Would I be better off closing the HSBC ISA and moving the cash to the A&L account paying 8.5% before tax on £2500. I could then drip feed any remaining excess cash to somewhere like kaupthing edge?

I think you have got it more or less sorted!

The only thing I would suggest would be to transfer your HSBC ISA to one of these providers http://www.moneyfacts.co.uk/savings/bestbuys/mini-cash-isas-accepting-transfers-in.aspx and then open a new cash e-ISA from HSBC for this tax year which pays 6.25% AER http://www.hsbc.co.uk/1/2/personal/savings/cash-e-isa and put the next £3600 you have to save in there.

JimBlizz

UproarUK wrote: »

The only thing I would suggest would be to transfer your HSBC ISA to one of these providers http://www.moneyfacts.co.uk/savings/bestbuys/mini-cash-isas-accepting-transfers-in.aspx and then open a new cash e-ISA from HSBC for this tax year which pays 6.25% AER http://www.hsbc.co.uk/1/2/personal/savings/cash-e-isa and put the next £3600 you have to save in there.

I was under the impression you could only run one ISA at a time... or have I missed the point?

LongTermLurker

JimBlizz wrote: »

I was under the impression you could only run one ISA at a time... or have I missed the point?

You can only contribute to one ISA in a tax year - there's nothing stopping you transferring existing ISAs that only contain cash deposited prior to April 6, and then starting a new one for 2008/09.

A transfer doesn't count as a new contribution.

JimBlizz

Understood, thanks

j-man_5

I'd do as said above and see if you can open the HSBC isa that pays 6.25%.