mocross

mocross

Having just missed out on last year's ISA allowance I was ready to go and applied on 6th April for Alliance & Leicester's Direct ISA issue 2 paying 5.2% (including introductory 0.7% bonus), I didn't know (or didn't notice) that this bonus was withdrawn from 12/04/06. I had my application accepted on 10th April and immediately transferred £3000 from my current account, but this was not credited to my new ISA until 13th April. The interest rate now shown is 4.5% - less than the 4.65% I was getting on my Abbey ISA from a previous year. I was planning to transfer the Abbey into the new Alliance & Leicester, but now I'm stuck. Can I open a new ISA with zero funds and then transfer one or both ISAs into that, or must I leave both ISAs alone until next April or lose the tax free advantage?

masonic

You should be OK. The lower rate should only apply to accounts applied for after the bonus was withdrawn. If in doubt, phone and ask them. Also, see Stonk's post in this thread.

mocross

Thanks for that. I phoned and I am getting the 5.2% as you said.