Halifax ISA - where to move my money?

Scott`_3-2

Hi everyone

I have had an ISA with Halifax since October '07, and in that time I have invested £6,000. I've been busy the last couple of months and so completely forgot the end of the tax year had passed so I didn't have a chance to look into changing over to a new provider. I see the interest rate with Halifax now says 0.5%, so it's hardly worth continuing.

I was wondering, bearing in mind i'm too late to change it over, would it be worth putting my money into premium bonds? My only hesitation is that, once the rates recover and I wish to return to an ISA, i'll be limited to only putting half my savings back in.

Any thoughts appreciated...

Thanks

Comyface

Martin's done a good article on Premium Bonds (can't link to it, sorry, don't know how, but if you click the banking/saving tab at the top it's in there). The average return is apparently 1%.

Halifax have launched a new ISA, you know, paying 3%. If you just have a normal cash ISA (and judging by your interest rate you have), you can change it into this new one. The new one's a telephone/internet only account and the rate's guaranteed for a year. You can withdraw 4 times a year, if you withdraw more often the rate goes back to what you're currently on.

Baldur

Why not simply transfer it to the Halifax ISA Direct Reward? Cash ISA transfers can be carried out at any time & preserve the tax-free status of the full balance - you could also add this tax year's £3,600 allowance.

Comyface

Just re-read your post. If you are transferring previous year's contributions it doesn't matter that we're now in a new tax year, just let the bank do the transfer rather than taking the money yourself. It then will still apply to the year you put it in and you can add this year's contribution to it as well.