Abbey Mini-Cash ISA

ffc

Hi was just after a bit of advise.

I currently have £11000 in an Abbey Easy ISA which I think is currently running at 4.35% but have seen other ISA's with a higher interest rate.

Would it be worth moving the money to a new account, can this be done and is it quite straight forward to do?

Kazza242

ffc wrote:

Hi was just after a bit of advise.

I currently have £11000 in an Abbey Easy ISA which I think is currently running at 4.35% but have seen other ISA's with a higher interest rate.

Would it be worth moving the money to a new account, can this be done and is it quite straight forward to do?

I think it is definitely worth transferring elsewhere, especially as many mini cash isa's are offering around 5%. What you need to look for is a mini cash isa that allows transfers - not all of them do.

- Halifax 1 year fixed rate isa pays 5% (obviously no withdrawals are permitted during the 1 year term otherwise you lost 180 days interest).

- Halifax ISA Saver Direct pays 4.75%. It is an easy access account, so withdrawals are permitted without penalty.

- A&L offer 5.2% which is an underlying rate of 4.5% plus a 0.7% bonus until next April. You'll have to hurry though as the bonus will not be available to new accounts opened after today (12 April) making the overall rate just 4.5%. **I doubt you'll have enough time to open this one.

Check out the Moneyfacts website for more mini cash isa's:http://www.moneyfacts.co.uk/savings/charts/savings_mini_cash_isa.htm

There is also the Moneysupermarket website: http://www.moneysupermarket.com/savings/

The important thing to remember is do not withdraw the money to take to the new ISA provider you choose, otherwise your money will lose it's tax-free status. When you've decided which provider you wish to transfer to, make sure they accept transfers and then tell them you would like to transfer into their ISA. They will handle the transfer for you. Make sure you have your mini cash ISA account number and sort code, as well as ID. They may ask for your National Insurance number too. They have 30 days to carry out a transfer, although many transfers are completed much quicker than that.

ffc

Thanks for that.

I might be using some of the money to put towards a deposit on a mortgage in about 6 months so would obviously need one that I can withdraw the money from.

Would it still be worth moving even if I want to withdraw most of the money.

Thanks again.

Kazza242

ffc wrote:

Thanks for that.

Would it still be worth moving even if I want to withdraw most of the money.

Thanks again.

I think so. A good moneysaver will always strive to make their money work harder for them. 4.35% is not a great rate for a mini cash isa, when there are rates of 4.75%+ available. As you've said you'll be needing the money in around 6 months, look for an easy access mini cash isa, that allows transfers and doesn't penalise you for making a withdrawal.

ffc

As Abbey pay intrest on the 1st March if I transfer out now will I loose the intrest earned from this date?

It looks like the Halifax will pay 5% intrest would anybody recommend this?

YorkshireBoy

ffc wrote:

As Abbey pay intrest on the 1st March if I transfer out now will I loose the intrest earned from this date?

No, they'll calculate it up to the date of closure/transfer and add it to your capital.

It looks like the Halifax will pay 5% intrest would anybody recommend this?

Not if you want your money in 6 months time, as the Halifax 5% ISA is a fixed (for 1,2,3,4 year) product.