i need advice about ISA please!

sam1970

i have a cash ISA with a bank (lets call it A) whch pays 5.3% interest and i found through mse that i can transfer my savings to bank (lets call it which will pay 6.8%....bank A in their t&c say that interest is paid annually on 5 april...my understanding is if i transfer my money now (in october), bank A will not pay interest for this year as the account is closed before 5 april and bank B will pay interest only on the period october08 till april 09 which means i will lose interest on the period april08-october08....is that correct or am i talking rubbish?...can you give me expert advice please...thanks

jem16

sam1970 wrote: »

....is that correct or am i talking rubbish?...can you give me expert advice please...thanks

You're talking rubbish

On account closure all interest will be marked up to date and transferred along with the capital.

fatpig_2

When you transfer you'll get the interest added to Account A which will then be closed and all money including interest transferred to Account B

pumpndump

At the beginning of the fiscal year, open a cash isa with £1 with B. As soon as you get your interest, transfer £3,599 to B, assuming the government has not raised your allowance.

jem16

pumpndump wrote: »

At the beginning of the fiscal year, open a cash isa with £1 with B. As soon as you get your interest, transfer £3,599 to B, assuming the government has not raised your allowance.

No point in waiting until the beginning of the tax year as pointed out earlier.

As to transferring it doesn't count as part of your allowance anyway.

pumpndump

jem16 wrote: »

No point in waiting until the beginning of the tax year as pointed out earlier.

As to transferring it doesn't count as part of your allowance anyway.

That's what I wanted to do cos I can get 2% more elsewhere, but my wife told me that I couldn't do it like that It is not a chastity belt she needs, it is a gag. I.m doing the transfer tomorrow.

sam1970

thank you all guys...helpful as usual