ISA vs existing fixed rate of 5.8% (taxable)

V6Matt

I am having a bit of a dilemma....

I have received my ISA Icesave certificate which allows me to transfer the 6.8k I had in that account to another ISA.

However looking at the rates for cash mini ISA's the top 3 appear to be:-

Leeds/Newcastle Building Society - 4.5% variable
Kent Reliance (under 26) - 4.26% ( I qualify)

However I also have a fixed rate for a year with the Bank of Scotland for 5.8% (savings account) and thus taxable -bringing the after tax rate to a fixed 4.64%

So on first sight common sense would suggest that I stick it in the BoS account (which allows withdrawals), however I am afraid of losing the 6.8k transfer certificate and effectively have to build my ISA up with the small 3.5k chunks each time.

Any advice?

Thanks

Baldur

If you wish to retain the tax-free status of your Icesave ISA funds, they have to be deposited into another ISA account by 5th April 2009.

You could certainly pay them into a non-ISA account until late March/early April and then pay them into an ISA account - but, if you fail to do so, you will, as you say, have to start again from scratch after 6th April, having lost the tax-free status of the previous two tax years' subscriptions.