Does this ISA look OK?

jollyme

I have phoned Julian Hodges and have been told that I can transfer from a previous ISA without the need to invest any of this years (2008/2009) allowance. I hope this helps

freeasabird

I have £3,200 from a previous ISA and I haven't used 08/09's tax year yet so am I right in assuming I can take out an ISA with Julian Hodge? I'm a bit concerned about their withdrawal fees. I looked at the t&c provided by alistair_h and depending on how they interpret their rules, the withdrawal fee could make it expensive to move to another ISA (well I suppose it's not in their interest to make it attractive).

jollyme

So far as I understand it you can, that's certainly the situation I asked about earlier today and was told yes. It's probably as well to put your mind at rest and give them a quick call. When I called earlier today I got a very fast and efficient (let's hope accurate) service.

jollyme

The exit fee is only applicable if you need to withdraw before the fixed term has completed

alastair_h

freeasabird wrote: »

I have £3,200 from a previous ISA and I haven't used 08/09's tax year yet so am I right in assuming I can take out an ISA with Julian Hodge? I'm a bit concerned about their withdrawal fees. I looked at the t&c provided by alistair_h and depending on how they interpret their rules, the withdrawal fee could make it expensive to move to another ISA (well I suppose it's not in their interest to make it attractive).

You could add £3,600 for 08/09 then transfer in to JHB, once the FRISA is opened you won't be able to add further funds. With it being a fixed rate term if you want to take money out your basically breaking the ISA terms so you would expect to be penalised - that's the trade off with a fixed rate / term. But in an emergency you can get access to your funds if required.

The_Enforcer

freeasabird wrote: »

I saw this fixed rate ISA and it looks ok to me. Am I right?


3.10% AER (3.06% tax-free) fixed until 30 April 2010
then 0.50% AER (0.50% tax-free) variable thereafter

• save up to £3,600 tax-free this tax year (from 6 April 2008 to 5 April 2009)
• start saving from just £1
• transfer any ISA balances to us, held with other providers, from previous or current tax years. (Transfers from existing first direct ISAs are not permitted).
• make the most of your ISA allowance
• immediate access to your money by internal transfer to another first direct account (transfers to accounts held elsewhere may take longer)*
• online statements
• no maximum limits on the amount that can be transferred to our cash e-ISA from another cash ISA held with another provider.

http://www.firstdirect.com/savings/cash-eisa-overview.shtml

I know Natwest pay a bit more but this won't go down during the year and FD have a good reputation for customer service. Unlike Barclays (I have an ISA with them for the 07/08 year and I haven't been able to pay in for 08/09 (long story)), they may actually get it sorted out before the end of the tax year. Any comments appreciated.

If I have understood this correctly, this is an ISA to keep an eye on.

If you are likely to need instant access to your cash, this FD ISA is potentially the best option for a transfer in of existing ISA money. I say "potentially", because it depends how the other top rate providers react to the BoE rate cut on 5th March. If those drop, then this will have a clear lead over its rivals. Should there be another rate cut in April, it would have an even greater lead and be the obvious winner, with the proviso that other rival products do not emerge in the meantime.

For new ISA investments, the best variable rates are significantly higher at present, but these could potentially fall below the FD rate too.

The flip side is that the BoE rate could start to rise at some point during the next 12 months and this ISA would be stuck on 3.10%, being overtaken by variable rivals and new products, however, because it's easy access, there's nothing to prevent the savings being transferred to another ISA product with a higher variable or fixed rate. For this reason, it could be worth considering as an alternative to locking savings away in one of the fixed no access ISAs with a higher rate, although the short-term return from the latter would be better.

The question is, especially if the BoE rate falls again, how long will it be before this product gets withdrawn?

favemuppet

freeasabird wrote: »

FD have a good reputation for customer service. Unlike Barclays (I have an ISA with them for the 07/08 year and I haven't been able to pay in for 08/09 (long story)), they may actually get it sorted out before the end of the tax year. Any comments appreciated.

I applied online for one of these last Wednesday. Still waiting for my paper application "to sign" to arrive in the post...........

I also note that to transfer in you need to ring up for a form. Why dont they make this available online to print, given that they are an online bank?? Probably more delays........

Natti_A

It has only taken them 3 working days to send my filled out application form out for me to sign. I also want to transfer in some funds.... on the application form i had to tick a box, and they will apparently send me out the transfer forms so i presume they will arrive next week. Will take some time, but at least i know my ISA is still earning 2.4% elsewhere. Its not a lot, but its something.

favemuppet

Natti_A wrote: »

It has only taken them 3 working days to send my filled out application form out for me to sign. I also want to transfer in some funds.... on the application form i had to tick a box, and they will apparently send me out the transfer forms so i presume they will arrive next week. Will take some time, but at least i know my ISA is still earning 2.4% elsewhere. Its not a lot, but its something.

Got mine through now.

Applied evening of 4th, paperwork sent out dated 5th, but not arrived until 11th - but thats probably second class post for ya!

Ticked the box for my ISA transfer form. All seems a bit long-winded to me.....

Natti_A

It is a bit of a longwinded process... but im willing to wait as this is the 2nd time i will transfer this money in the same number of months. Barclays to A&L, A&L now to First Direct. As soon as i moved my money, a better A&L ISA came out. Of course this doesnt allow transfers from other A&L ISA's! Well thats the last they will see of that money .