End of year +ISA

deec_2

I took out an ISA for this current year (following advice from this site). What do I do with it at the end of this financial year?

Thanks in advance:rotfl:

Lokolo

You can leave it in its ISA..... on April 6th you can add another £3,600 in it if you like. Or you can leave the ISA, open up a new ISA elsewhere and put £3,600 in that.

deec_2

If you leave it in does is it still tax free and will the rate of interest change?

shrewsaver

deec wrote: »

If you leave it in does is it still tax free and will the rate of interest change?

If you leave it in then yes it will still be tax free.

In response the second part of your question, the interest changes over time, it depends when you opened up the ISA whether it was a fixed rate or variable rate.

Who is the ISA with and what is it called?

Baldur

deec wrote: »

If you leave it in does is it still tax free

Yes

will the rate of interest change?

If it does, simply find a new Cash ISA provider that pays a better interest rate and accepts transfers - complete their transfer form and they will arrange the transfer. You can't arrange the transfer yourself.

deec_2

its an HSBC one

Baldur

deec wrote: »

its an HSBC one

From memory, most of their rates are pretty dire - suggest that you read through this post, scrolling down to find those variable/fixed-rate Cash ISAs which accept transfers, and compare those with your HSBC one.

Remember that ISA transfers must be initiated by your chosen new provider to retain the tax-free status of the ISA - you merely complete their transfer form and they arrange the transfer with the old provider.

staffie1

If you're a First Direct customer with HSBS they currently have a Cash e-ISA which pays 3.06% fixed to 30/4/10 which is pretty good. Accepts transfers in too. I'm going to transfer my ING Direct ISA (and close it as they slashed the interest rate to almost nothing) into a Cash e-ISA before 6th Apr and then carry on saving into it in the new tax year.

If you transfer in you don't lose the tax-free benefit. If you close your existing ISA yourself, you do.

Baldur

staffie1 wrote: »

I'm going to transfer my ING Direct ISA (and close it as they slashed the interest rate to almost nothing)

Transferring a Cash ISA from one provider to another should automatically close the old one when the transfer takes place (unless you make a partial transfer of previous tax year's/years' funds). That's certainly been the case with every transfer that I have made over the years.