Transferring Isa - is it worth it?

Nomad25

:mad: Abbey - sorry Annie! They have received so much stick [inc from me] on this forum - it's good that you've obviously had no problems with them.

Their admin is a shambles, I wouldn't touch them .

TomsMom

natman wrote: »

Hi Norbie,
Yeah i would look at getting a better interest rate too.

I have opted for a newcastle buidling society ISA. Paying 6%.

I did this because - you can transfer in, you can manage it by -
Internet online
post
phone
Branch
Not many others give you this for 6%, they have been really helpful too

Newcastle pay 6% if you have £3,000 or more in your ISA - OH and I have just opened one of these. Under £3,000 and it's 5.5% and the OP said he has about £2,500.

Details here

norbie

Thanks everyone. I see what you mean about the bond now but if I had my ISA in a bond, how would I keep paying money into it throughout the year. My guess is that I can't have a cash ISA too?

I think the easiest bet for me will be to move to a better cash ISA like the suggestions above. It might be worth sticking with the Newcastle one for 6% for instance rather than going to the Icelandic one for 6.1% just for UK "safety".

chinbergs

Icesave has the same financial protection norbie, and its call centres are uk too.

I'm really pleased with my Icesave account. They did everything well. Their website is user-friendly. Customer Services useful. I also like that they pay interest monthly, so I can see it building up.

I'd recommend them.

norbie

Ok, I'll have a look at it then. Are there any advantages/disadvantages of interest being paid monthly? Do you earn more because you're earning interest on interest?

Nomad25

I'd recommend Icesave too, I'm no expert, just a normalish punter.

BUT fyi and decision making, check this out for monthly/annual savings rates:

http://www.icesave.co.uk/interest-rates.html

Decision on where to put your money has to depend very much on personal cirumstances.

norbie

Thanks. I'm still really confused. If I have interest paid monthly it's a lesser rate, but does it add up to 6.1% overall?

norbie

I have just started the transfer process to Icesave.

Thanks for everybody's help and advice :T

P.S. I went for annually paid interest as you earn more that way.

Jake'sGran

Nomad25 wrote: »

Nationwide do a 1 year fixed ISA bond paying 6.15% [me and OH have got these] - check it out here:

http://www.nationwide.co.uk/pdf/savings/P115_ISAs.pdf

so you know exactly what you're getting into.

I read today about the trouble a lot of people are having transferring ISAs. In some cases it has been taking months.The Nationwide was mentioned but they have stopped accepting transfers because they can't keep up with the quantity of people who want them. Right now I am looking for a good rate to transfer from the Yorkshire Bulding Society. We have a lot of accumulated years with them but their best one is on line @ 5.75% . Might have to settle for that if there is nothing better. But, I have been starting to consider not using ISAs as we are non tax payers and the maximum free pay we can have this year has gone up to £9030. Still, ISAs mean I don't have to mention them on any tax forms or worry about Capital Gains.

jem16

norbie wrote: »

P.S. I went for annually paid interest as you earn more that way.

No you don't.

If you chose the monthly interest at the end of the year you would have exactly the same. It's all to do with compounding of interest when paid monthly.