ISA Question and Advice

YoungSaver20

Hello, I have an ISA with Bank of Scotland. My ISA doesn't mature until the 6th of May which means the rate will be a lot worse by then.

However, a letter will be sent to me a few weeks from now which asks what I want to do for this tax year and I am planning to continue the ISA and add 3600, is it possible for me to get the interest rate which they are offering at the time? Or would it be the interst rate offered on 6th May. For example on 10th April they offer 2.5 % and I confirm I want to continue with my ISA, and 1 % on 6th May which interest rate would I receive?

Lokolo

Do you have £3,600 available for then?

Heres a plan:

- 1st May put in £3,600. Write down the rate you are getting from now on.
- Look up ISAs which allow transfers and have a better rate.
- Transfer.

YoungSaver20

Well yes, I do have 3600 available just now but I'm not considering transfering because I don't see much profit for me. The rate just now is 3.1 % for the BOS ISA and the maximum is maybe 3.4 % within the market. But I'm just wondering if I confirm I will continue with the ISA and add 3600 (to be added later) if I would have the 3.1 % rate?

Or does the rate depend on when you start the account which will be 6th May?

Lokolo

You say it matures on 1st May. Is this when interest is paid or is it a fixed rate ISA?

YoungSaver20

Well it is a fixed rate ISA for one year until May 6th. That's when the interest will be paid aswell.

Lokolo

Ok that means on that date the interest will be paid and the ISA will be put in an instant access ISA earning minimal interest.

You can then deposit the £3,600 in.

You can then choose to fix it again but the rates will be different to what they are now.