Transfer Natwest ISA to Halifax Fixed ISA ??

miele_2

Can't believe how awful the ISA interest rates have turned! :mad: The Natwest cash ISA rate has fallen to 4.66% aer.

Is it a good idea to transfer it to Halifax? I've seen they have a fixed rate cash ISA at 5.00%aer (1 year £500+)
http://www.halifax.co.uk/isas/fixedrateisa.asp
Surely fixed rates are the safest bets at this time?

Do Halifax process ISA transfers quickly? Am a little hesitant regarding transfers as my ISA trans from Abbey to Natwest has taken 2 months, (long story, 1st transfer form somehow got lost by the banks, 2nd trans attempt in progress, still awaiting funds to appear in Natwest acc).

Any info/advice would be much appreciated. Thanks!!

UPDATE:
Just reading throught the T&Cs, it says:
...further additional deposits are not allowed into a fixed rate Halifax ISA saver.....

So, as I haven't yet used up all of my 3,600 allowance for this tax year I guess it's bad news for me.

PS
What exactly does this mean???
"Please note, this account does not meet the Government stakeholder standards for ISAs."
http://www.halifax.co.uk/isas/ImportantInfo/ImpInfo_fixedrateisa.asp

Baldur

miele wrote: »

PS
What exactly does this mean???
"Please note, this account does not meet the Government stakeholder standards for ISAs."
http://www.halifax.co.uk/isas/ImportantInfo/ImpInfo_fixedrateisa.asp

Many, if not most, Cash ISAs which pay reasonable interest do not comply with 'stakeholder standards'. See http://www.moneynet.co.uk/banking-saving/isa-account/isa-faq.shtml#i

The Government has introduced a set of standards by which all Stakeholder marked products must comply:-

CHARGES - No account charges

ACCESS – A minimum investment limit of £1 & instant access to your money

TERMS AND CONDITIONS – A variable interest rate guaranteed to be no lower than 1% below Bank of England base rate.

The Stakeholder mark is designed to allay some of the concerns about investing in financial products but does not give a guarantee of investment performance. Individual providers will be able to decide whether they wish to offer a Stakeholder standard product and a non-Stakeholder marked product may offer equal or better value depending on your circumstances.

rb10

miele wrote: »

Just reading throught the T&Cs, it says:
...further additional deposits are not allowed into a fixed rate Halifax ISA saver.....

So, as I haven't yet used up all of my 3,600 allowance for this tax year I guess it's bad news for me.

If you have funded the Natwest one this tax year, but not with the full £3600, then you'll lose the rest of your £3600 allowance, as you can only fund one ISA per tax year, unless you are able to top-up your Natwest ISA before transferring it to Halifax.

If you haven't funded the Natwest one yet this tax year, then you can transfer to Halifax, and still fund another ISA that does allow extra deposits.