Quick ISA question

matimage

Can someone just clarify something for me please:

When I transfer last years ISA into this years ISA, do I transfer just the £3600 or the £3600 plus the interest?

Also, will the interest accrued on last years ISA this year, be automatically calculated (its normally done at end of taxt year) and added to the transfer amount?

rb10

You can transfer the whole amount. Transfers do not count towards your £3600 subscription limit for the tax year - you can transfer as much money around within ISAs as and when you like.

There will normally be a box to tick on the form that says 'transfer whole amount'.

When they close the account, they'll add any unpaid interest to it as well, and transfer that along with the capital amount.

matimage

Super. Many thanks rb10.
Just had a look at last years A&L ISA and its getting a rubbish 0.10% so I am going to transfer it into my new First Direct ISA which was one of the best buys on here at 3%.

rb10

The First Direct ISA is very good. Make sure you make a diary note to arrange a new ISA in October next year - as the rate at First Direct will drop to 0.2% on 9th November 2010.