ISA transfer help please

Indispensable_Hobbes

Hi all, I currently have an ISA with A&L - 4.5% about 5k in there.

Northern Rock have brought a 1 year/4 year fixed at 4.60% BUT as I am staff i get 0.50% extra (5.10%)

When the rate changes (im assuming they mean BoEBR) this ISA will close and i wont be able to add to it but will remain fixed for 1/4years.

Should I... transfer my current ISA to NR (contributions have been filled for 05) then open another at 5.10% to contribute to after april.

or

Transfer the A&L to NR and then open a seperate one after april that isnt fixed, and i can continue to contribute to.

I'm a bit confused with this thing, the lady at the branch wasnt making things very clear ...if the rate changes you cant contribute any more. I could open one and put in £500 then the rates change and it closes but remains fixed for 1/4 years. I wouldnt be able to open another.

I'm thinking ... transfer what I have then open one thats variable and wont close.

Will ring up the ISA dept tomorrow but just wanted some thoughts.

All of that probably reads really confusing, sorry.

grumbler

jenyking wrote:

...When the rate changes (im assuming they mean BoEBR) this ISA will close and i wont be able to add to it but will remain fixed for 1/4years.

I cannot find anything about this on their website or in Terms and conditions.

http://www.northernrock.co.uk/html/savings/savings.htm
[font=arial,helvetica,sans-serif]ADDING TO YOUR ISA [/font]
[font=arial,helvetica,sans-serif]As long as the issue is still available, you can add to your Mini Cash ISA by cheque (or cash via a branch). The maximum investment is currently £3,000 in each tax year.[/font]

I don't believe that they can stop you adding funds to your ISA in the middle of a financial year, because if you already added some amount below £3K you are not allowed to open ISA with other provider.
You need some more reliable source of information than 'lady at the branch' ...

Indispensable_Hobbes

Well thats what i thought but that was what 2 people said to me and I was getting REALLY confused.

I'll ring someone in savings and see what they say.

Either way having an ISA with NR is going to be more beneficial than A&L cos I get 0.50% ontop
currently
1+ 4.65 (5.15)
6000+ 4.75 (5.25)