ISA Dilemma

BruceyBonus

I currently have a Cash ISA with National Counties BS for this year. This is my only cash ISA. The rate is currently 4.21%.

I am not currently a tax payer - but will be in around 2 years.

With interest rates expected to drop again and my circumstances changed, I'm ready to fix this money.

I have several options but not sure which to choose:
1. Transfer to a 5% Halifax ISA. But this is a gamble because if National Counties don't send the money in time and Halifax have dropped the rate, Halifax will give me a lower interest rate. National Counties also impose a 10 day interest loss of transfers before the end of the tax year.
2. Tranfer to a 4.3% fixed account with National Counties - could be done today.
3. Close the ISA and move money to my fixed rate account at Bank of Scotland (not an ISA). Currently paying 6.5%, fixed until July and accepting further deposits.

I'm very tempted to go for option 3 as I'm not a taxpayer, but then I'll lose the ISA allowance for this year and the rate won't be fixed for so long.

Can anyone offer any kind words of wisdom to help me choose!

Stompa

BruceyBonus wrote: »

1. Transfer to a 5% Halifax ISA. But this is a gamble because if National Counties don't send the money in time and Halifax have dropped the rate, Halifax will give me a lower interest rate.

Despite the fact that it says on their website: "If you ask to transfer to our fixed rate ISA, interest rates may change before the transfer has been completed", they assured me that as long as the transfer was completed within 60 days of application then the rate would be fixed at the time of application. I'd suggest getting them to confirm that though.

nrsql

It's even better.
On Sunday I called to open a 5,25% fix ad get the 60 days to complete.
Just called today and they said I could do other isa transfers into that as well (barclays and egg). The funds would have to be put in together though so I would have to wait for the icesave isa certificate.
So have a choice - everything at 5.25% in a few weeks time or icesave at 5.25% and the other two now at 5%.

Calling them to open a fixed rate is a bit like just having an option on the account for 60 days.
Makes you think there is a cach somewhere.

BruceyBonus

I've gone for option number 3. It seems the best thing to do, considering I won't be able to fill an ISA next year anyway I'll lose around £1000 of my ISA allowance.

Stompa

nrsql wrote: »

Just called today and they said I could do other isa transfers into that as well (barclays and egg). The funds would have to be put in together though so I would have to wait for the icesave isa certificate.
So have a choice - everything at 5.25% in a few weeks time or icesave at 5.25% and the other two now at 5%.

I'm doing that too. I'm not entirely clear what you mean about putting them in together though? And where does the 5.25% come from? Isn't it 5% or 5.5% for £30k+?