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Life after A&L, what's next?

GreatGatsby22
Posts: 13 Forumite
I held off transferring my Abbey Choices mini-cash ISA as I understood I would be penalized if I touched it before the 2nd of May, being 1 year after taking it out (from the Abbey handbook). Of course by now the A&L Direct 2 has reverted from 5.2% to a run-of-the-mill 4.5%.
In retrospect perhaps I should have worked out the tradeoff between the Abbey early withdrawal charges and the 0.7% drop in A&L rate but my wee head would have exploded!
Anyways at this point is there a next-best provider?
Maybe NSI for this year's allowance but my main concern is for the current ISA I have built up with the Abbey.
Sorry if I'm covering old ground but any advice would be gratefully appreciated.
In retrospect perhaps I should have worked out the tradeoff between the Abbey early withdrawal charges and the 0.7% drop in A&L rate but my wee head would have exploded!
Anyways at this point is there a next-best provider?
Maybe NSI for this year's allowance but my main concern is for the current ISA I have built up with the Abbey.
Sorry if I'm covering old ground but any advice would be gratefully appreciated.
* More power to yer respective elbows *
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Comments
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GreatGatsby22 wrote:Of course by now the A&L Direct 2 has reverted from 5.2% to a run-of-the-mill 4.5%.
In retrospect perhaps I should have worked out the tradeoff between the Abbey early withdrawal charges and the 0.7% drop in A&L rate but my wee head would have exploded!
Anyways at this point is there a next-best provider?
Maybe NSI for this year's allowance but my main concern is for the current ISA I have built up with the Abbey.
If you can tie your transferred ISA funds up for 1 year, then I would say the next best is the Halifax 1 year fixed rate mini cash ISA, currently paying 5%. Details here.
For those wishing to transfer to their fixed rate ISA: Halifax open an ISA Saver Direct first and transfer your ISA into it, you can then phone them and ask for it to be fixed, it will then be converted into a fixed rate ISA.Please call me 'Kazza'.0 -
Hi Kazza,
Many thanks for the advice. I was was a little concerned that the Halifax rate was due to fall after several months but on looking at the website you kindly provided, I reckon I must have been thinking about a different ISA of theirs.
Actually it's like the wheel turning full circle as I started saving with the Bank of Scotland, later consumed, or was is subsumed, by those fine folk in Halifax.
Thx again . . . Gatsby.0 -
GreatGatsby22 wrote:Hi Kazza,
Many thanks for the advice. I was was a little concerned that the Halifax rate was due to fall after several months but on looking at the website you kindly provided, I reckon I must have been thinking about a different ISA of theirs.
Actually it's like the wheel turning full circle as I started saving with the Bank of Scotland, later consumed, or was is subsumed, by those fine folk in Halifax.
Thx again . . . Gatsby.
You're welcome. If you do decide to go ahead with a transfer to Halifax, with the intention of going for the fixed rate ISA:
- When the transfer is started, Halifax will open an ISA Saver Direct ready to receive your transferred ISA funds. They should give you the roll number of the ISA Saver Direct, you can then add it to your online portfolio the next day.
- They should phone and write to you once the transferred funds have been paid into the ISA Saver Direct.
I]I am awaiting my M&S ISA to be transferred into Halifax and am logging in every day to check if it has arrived.[/I
- Once it arrives, check the rate Halifax are offering on their 1 year fixed rate ISA, both on their website and by phone. If it is still 5%, you can fix, However, if the rate offered has fallen you can decide what to do then. Whether that means leaving it in the ISA Saver Direct (at 4.75%) or transferring it out elsewhere.Please call me 'Kazza'.0 -
Even though you couldnt transfer out the money in your abbey isa until 2nd may, nothing would have stopped you from opening a new A&L ISA at the higher rate at the start of this tax year.
This is what I did...
I now have 3k in the A&L ISA at 5.2%, and am waiting for 2nd may, upon which, Ill transfer the abbey balance to A&L, without any charges.
I know this doesnt help you much now, but thought I'd mention it because it might give you a better understanding of the way ISA's work. Clearly you were under a false impression that you had to wait for your abbey isa to mature and were using that date, as opposed to the tax year date.
Even if you had no money to open the A&L one with, you could leave it at £0 until 2nd may.
Oh well, nevermind. Go for the 5% as suggested. I only give it a month or two before A&L drop their rate so low, that even with the bonus, we aren't getting any more than 5% anyway.0 -
Thx Sillychuckie, guess I'm really the silly one but I shall know for next time. Once bitten, etc, etc.0
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question for sillychuckie - when you transfer your abbey isa on 2nd may to your recently opened a&l isa, will the money you transfer receive the 5.2% or the now reduced rate that they are advertising which I think is around 4.5%?
I am interested to know because I opened an a&l isa when the rate was 5.2%with a transfer from another isa provider. I recently topped it up with this years allowance but it was at the time that they dropped the rate for new customers so I'm not sure if my 3000 for this year will still get the 5.2% along with my previous deposit?
Am I making sense?
Ta for any reply - babe ruthIt is unwise to pay too much but it's worse to pay too little. When you pay too much, all you lose is a little money... that is all. When you pay too little, you sometimes lose everything because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot...it can't be done. If you deal with the lowest bidder, it is well to add something for the risk you run and if you do that you will have enough to pay for something better (John Ruskin - 19 ctry author, art critic & social reformer)0 -
If you opened the A&L ISA whilst the rate for new customers was 5.2%, you will get 5.2% irrespective of when the money is deposited.0
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thanks markymark :T babe ruthIt is unwise to pay too much but it's worse to pay too little. When you pay too much, all you lose is a little money... that is all. When you pay too little, you sometimes lose everything because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot...it can't be done. If you deal with the lowest bidder, it is well to add something for the risk you run and if you do that you will have enough to pay for something better (John Ruskin - 19 ctry author, art critic & social reformer)0
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