NS&I Direct ISA

chequeout

Hi all - I'm thinking of putting £3600 in a NS&I cash ISA for this tax year (currently paying 2.50 per cent). I was just wondering if anyone has one, if they would recommend it, if anyone has any good / bad stories or feedback? £3600 is a lot of money and I'm guessing I'm just being overly cautious about putting it in there....

Also, specifically, on their Internet application, they say: I apply to subscribe for a cash ISA for the tax year of 2009/10 and each subsequent year until further notice. I'm confused - does this mean they will automatically open a new ISA every tax year? In April I may want to open one with another provider and am worried if NS&I automatically open me one with them "each subsequent year until further notice" then I will be "stuck" with them for another tax year and won't be able to go elsewhere as you can only open one a year...?

I'm really sorry if I sound dumb - I'm trying to get myself organised and if anyone can help I would be very grateful ;-)

Thanks in advance :T

10_66

chequeout wrote: »

...they say: I apply to subscribe for a cash ISA for the tax year of 2009/10 and each subsequent year until further notice. I'm confused - does this mean they will automatically open a new ISA every tax year?

No, you won't have to subscribe to them each year, it just means that you can continue to add to it, if you want to.

If you don't mind your money being tied up for 12 months you can get better interest rates than NS&I variable, such as Julian Hodge (currently 3.25% - early access subject to an early exit fee).

david78

The NS&I ISA is a decent rate for an instant access ISA, though you can beat it. I used to have one and their management of the account and customer service was good. As its instant access you can always withdraw the money if you need it.

The clause about applying to subscribe to the ISA in subsequent tax years is standard (all application forms have the same wording). Don't worry about it. It's just there so you can top up your account in 2010/2011 tax year without filling in a new form if you want. It does not prevent you opening an ISA somewhere else in 2010/2011 if you want to do that instead.

Good luck with it :T