My 08-09 ISA Bond expires 19/04/09 - advice please

Franko180

Hi all,

I've been using this site for a year or two, but never needed to ask anything, but now I thought I'd tap into the vast knowledge on here. I invested 10k in a "Nationwide Fixed Rate ISA Bond" in April 2008 which of course is now going to mature. It had an interest rate of 6.15% gross and the estimated fund will be 10615.38 on maturity.

I want to re-invest this for 2009-2010 and am 100% confident I won't withdraw any of it. Another fixed bond might be nice, but also is it possible to have some kind of plan where I could add more to it over the year?

Any ideas would be appreciated, thanks.

Baldur

The Halifax DIrect ISA Reward currently offers 3% fixed for 12 months, permits up to 4 withdrawals and accepts transfers & additional deposits.

Also check out this post and the usual comparison sites.

Franko180

Baldur, thanks. That does look good. So as I understand it I can open the Halifax Reward Saver account, deposit up to £3600 per Tax year and transfer my existing ISA into it?

One thing Im a bit confused on is that my Natiowide ISA Bond expires 19/04/09 so does this affect when I can apply for a new ISA with Halifax or other banks?

Baldur

Franko180 wrote: »

Baldur, thanks. That does look good. So as I understand it I can open the Halifax Reward Saver account, deposit up to £3600 per Tax year and transfer my existing ISA into it?

One thing Im a bit confused on is that my Natiowide ISA Bond expires 19/04/09 so does this affect when I can apply for a new ISA with Halifax or other banks?

Have you subscribed (paid new money into) to a Cash ISA since April 6th 2008?

If not, you can open one straight away.

If you have, then you can open one on or after 6th April.

Transfers are not restricted to tax year start/end dates, so your Nationwide one can be transferred on maturity.

Franko180

I have a "certificate of investment" from Nationwide which states "Date ISA started: 19/04/08". So I guess this means I can't apply for anything until 06/04/09?

alastair_h

Franko180 wrote: »

Baldur, thanks. That does look good. So as I understand it I can open the Halifax Reward Saver account, deposit up to £3600 per Tax year and transfer my existing ISA into it?

One thing Im a bit confused on is that my Natiowide ISA Bond expires 19/04/09 so does this affect when I can apply for a new ISA with Halifax or other banks

yes you can do this with Halifax ISA Direct Reward http://www.halifax.co.uk/savings/isa-direct-reward.asp

You can apply for a new ISA from 6th April 2009. If you wanted to transfer your ISA bond you would have to wait until this completes on 19th April 2009.

GiraffeMan

Franko180 wrote: »

I have a "certificate of investment" from Nationwide which states "Date ISA started: 19/04/08". So I guess this means I can't apply for anything until 06/04/09?

Not at all, that just means that is when your existing ISA rate finishes, it may be prudent to start the transfer now as it could take a while to complete an ISA transfer at this time of year

Baldur

Franko180 wrote: »

I have a "certificate of investment" from Nationwide which states "Date ISA started: 19/04/08". So I guess this means I can't apply for anything until 06/04/09?

That's right.

When you apply for your new ISA on 6th April (or later), you can complete the new provider's transfer form at the same time, for the transfer of the Nationwide ISA, putting the date of maturity as the date on which you want the transfer to take place (I usually write 'ON MATURITY' on the form as well, to avoid any misunderstanding of my instructions).

Franko180

Nationwide also sent me a form offering me to re-invest/transfer to a Nationwide current account/send as a cheque. I take it that I should ignore this form and wait until I have a new ISA set up and then request Halifax/whoever to transfer it for me?

Baldur

Franko180 wrote: »

Nationwide also sent me a form offering me to re-invest/transfer to a Nationwide current account/send as a cheque. I take it that I should ignore this form and wait until I have a new ISA set up and then request Halifax/whoever to transfer it for me?

Yes, it's the new Cash ISA provider that has to request the transfer from Nationwide.

You could return it as advance notification if you wish, just writing 'Arrangements being made to transfer to a new ISA provider on maturity' on it - but it's not required.