Worth transferring £5.2K to Post Office ISA?

Gazza_UK_3

Hi,

I have £3K with SBS @ 5.25% and £2.2K with NS&I @ 5.3% from previous tax years.

The Post Office have just launched their ISA which accepts transfers in.

Would it be worth transferring these into this ISA and leaving till the end of the current Tax year? I will not be drawing on it, so just looking to get some decent interest, which they pay out in March 2009.

I have £2K with Barclays, which I opened in April 08. Although it was not without nightmares, its earning good interest right now, so leaving it there.

Thoughts/advice appreciated.

Cheers,

Gazza.

YorkshireBoy

I'd be moving both previous years ISA's for 1% more, definitely.

My personal figure is >0.25%, but I do have a little more than you have.

Gazza_UK_3

Every little extra helps I suppose

billieboy_2

I posted this on another thread yesterday:

Quote:
Was thinking of opening and transferring funds to the Post Office account but this is in their terms and conditions:


"ISA Manager

: Family Equity Plan Limited (part of the

Family Investments group of companies), 16-17 West
Street, Brighton, BN1 2RL. The main business of Family
Equity Plan Limited is arranging investment business."

Presumably, as it is an investment business, it won't be covered by the Government's guarantee? Any help with this one appreciated. Unquote

Anyone know the answer?

dunstonh

Presumably, as it is an investment business, it won't be covered by the Government's guarantee? Any help with this one appreciated

The Govt doesnt offer any guarantee on savings or investments. The protection comes from the FSCS. Investment products do not get protected under the deposits protection scheme as they are not deposits. They get protected under the investments protection sceheme as they are investments. The exceptions are investments in the life assurance and pension wrappers which come under the insurance protection scheme.

I would be more concerned about the poor quality of the product than the actual FSCS protection.

billieboy_2

dunstonh wrote: »

The Govt doesnt offer any guarantee on savings or investments. The protection comes from the FSCS. Investment products do not get protected under the deposits protection scheme as they are not deposits. They get protected under the investments protection sceheme as they are investments. The exceptions are investments in the life assurance and pension wrappers which come under the insurance protection scheme.

I would be more concerned about the poor quality of the product than the actual FSCS protection.

Okay so what I'm talking about here is the PO Cash ISA at 6.25%. The ISA is run by the Family Equity Plan Limited but the Post Office is affiliated with the Bank of Ireland for taking the deposits for this ISA if that makes sense - sorry all my documentation is downstairs at the moment and I can't make it down and up again but here are the terms and conditions.

tiptoe_mouse

dunstonh wrote: »

I would be more concerned about the poor quality of the product than the actual FSCS protection.

Can you expand a bit on what you mean by the poor quality of the product? It seems like a good deal to me - 6.25% instant access and open to transfers in. Read about it here: http://www.postoffice.co.uk/portal/po/content1?catId=82300737&mediaId=82300739.

My only concern would be whether their admin systems willl be able to cope with the demand, especially for transfers. I tried to open a savings product online with them, and never heard anything from them after submitting my application. Hence I don't have a lot of confidence in their systems.

tiptoe

dunstonh

the cash ISA is deposit based. The information you are linking to seems to be a catchall document for a range of their plans, some of which include investments.

So, the 35k deposit protection scheme applies to the cash ISA.

dunstonh

Can you expand a bit on what you mean by the poor quality of the product?

At the point of posting, it appeared it was the post office GEB that was being referred to and that is poor value (as in you can get better).

tiptoe_mouse

dunstonh wrote: »

At the point of posting, it appeared it was the post office GEB that was being referred to and that is poor value (as in you can get better).

Sorry, what's a GEB? I can't find this term on the post office website? Is it a type of ISA?



tiptoe

dunstonh

GEB = guaranteed equity bond. These can be placed in an ISA or held unwrapped.