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mgna20

Hi,

I am planning on opening an ISA with ING for this tax year (about 4months left) and ING say you get 6.55% for the 1st 6months. What would happen if i open this account for this month then close it before(or after) the 5th of april and move the money to another ISA?

Can this be done? if so is it worth the effort?

Many thanks,

Mark

lisyloo

You can transfer ISAs but it's very important that you do a transfer to retain your ISA allowance
e.g. if you deposit in 2007 and transfer then it remains the 2007-2008 allowance and you will get an additional allowance come April 2008.

If you close the account and withdraw and you open a new one and deposit in April 2008 (max £3000) then you would be using the 2008-2009 allowance.

You can only deposit max £3000 in one year so obviously if you have £9,000 in there then you lose 3 years allowance by closing. Therefore it's very important to transfer.

Whether it's worth the effort depends on where you threshold is.
Mine is about £30 per year i.e. I can't be bothered for less than £30.

If you are someone that can't be bothered with the paperwork then you would be probably better off getting an account that may be better long term rather than one that pays a great bonus and then falls back onto a lower rate. Obviously we don't know what's going to happen in the future so it's guesswork but some places have a better track record than others (and you can often find past rates on websites).

For £3000 it probably isn't going to be worthwhile chasing the best rates but whenyou have £10K, £20K or more then obviously it becomes more worthwhile.

kiwiburger

Wondering if someone can help me pls...

I currently have a Cash ISA with FirstDirect that pays a measly 4.5% with interest paid monthly. (I got this a while ago when they had a good rate which has since reduced).

I'm interested in transferring it to a different provider who pays 6.21% with interest paid annually.

Can someone tell me whether this is worth it? With monthly interest payments, would I not earn more with compound interest?

Thanks... xx

voipphoner

I would like to transfer my firstdirect ISA (still from tax year 2005/2006). Can I only transfer 3K? Or the accrued interest on top? Would I get the new interest for 3K or the total?

Thanks,

jem16

kiwiburger wrote: »

Wondering if someone can help me pls...

I currently have a Cash ISA with FirstDirect that pays a measly 4.5% with interest paid monthly. (I got this a while ago when they had a good rate which has since reduced).

I'm interested in transferring it to a different provider who pays 6.21% with interest paid annually.

Can someone tell me whether this is worth it? With monthly interest payments, would I not earn more with compound interest?

Thanks... xx

What you need to compare is the AER for each account - whether it is paid monthly ( includes compounding) or annually, the higher AER is the better account.

An account earning 6.21% is very much better than an account earning 4.5%, monthly interest or not.

Time to change.

jem16

voipphoner wrote: »

I would like to transfer my firstdirect ISA (still from tax year 2005/2006). Can I only transfer 3K? Or the accrued interest on top? Would I get the new interest for 3K or the total?

Thanks,

When you transfer the accrued interest will be added and the whole lot transferred. You will then have interest paid on that total amount by your new provider.

kats53

I am thinking about transferring my existing isa's into better paying accounts (ie. kent reliance). What I'm not sure about is can I move more than one old isa into one new account? This might seem like a daft question but I am getting more confused the more I read.

isasmurf

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