Closing Cash ISA

laurajd28

Hi,

I've got a mini cash ISA with Britannia Building Society.
I've recently opened an online savings account which is more convenient for me.

I want to close my ISA and put the money into my online savings account. However, I don't get my interest until the end of the tax year (april 2009).

Will I lose the interest, or will they add it onto my account when I close it?

Many Thanks

Lokolo

Add it to your account when you close it

tiptoe_mouse

laurajd28 wrote: »

Hi,

I've got a mini cash ISA with Britannia Building Society.
I've recently opened an online savings account which is more convenient for me.

I want to close my ISA and put the money into my online savings account. However, I don't get my interest until the end of the tax year (april 2009).

Will I lose the interest, or will they add it onto my account when I close it?

Many Thanks

You could always transfer your ISA to an online provider instead. This way you'll keep getting tax-free interest.

tiptoe

martinman3

As tiptoe_mouse says there are other cash ISAs with better rates than the Britannia BS. Assuming that you currently get 4.50% from Britannia ISA and you are talking about an Icelandic online savings account paying 6.55% before tax, 5.24% after basic rate tax then there are online ISAs which pay around 6% tax-free which you could transfer to.
see http://forums.moneysavingexpert.com/showthread.html?t=401374

p.s. You may wish to put £100 in an Easy Saver account to maintain your membership rights before you close/transfer the ISA.

isofa

If you transfer to the top rated ISA accepting transfers in, you'll get up to 6.25% tax free per year. But you must initiate a transfer, if you close the ISA it instantly loses its tax free status.

Top rated ISAs accepting transfers in, listed here at Moneyfacts.

Once you close that ISA, you'll lose that year's ISA allowance forever.