Should i transfer my ISA? (halifax)

dparky

I currently have £3000 sat in Halifax Variable rate ISA Saver which is currently paying 3.55%. I have £2000 remaining for the isa of this tax year.
I've been looking at Halifax ISA Saver direct which currently pays 4.75%.

I'm looking into converting my current isa into saver direct.
The saver direct can only be managed online or over the telephone, where as the one i have can go into a branch and i very rarely go into a branch, i manage all my funds via online.

I went on their website to check out the isa save direct and it says this:-
(http://www.halifax.co.uk/savings/directisasaver.shtml)

"Invest up to £3000 in each tax year until 5th April 2010"

I have a few questions:-

1) What does this mean exactly?

2) Is it worth me transfering my isa to get higher rate?

3) If i have say £30.000 in an isa, does the interest accrue on all of £30.000 or just £3000? (i'm confused about this one as you are only allowed to put in 3k a year i was wondering if you only get interest for that 3k only or the full 30k.)

4) if i do transfer, will it be my full isa balance of 3k and still have 2k left to invest for the isa?

Thanks alot.

jem16

1. Gordon Brown has said that he won't change the rules on ISAs until at least 2010 - it simply means that until then you can pay in £3,000 each year. After that the amount may change.

2. Yes

3. You would get interest on the whole amount.

4. If you transfer you will still have the available balance for this tax year. Just make sure you do transfer and not close one account and open a new one.

sloughflint

Without a doubt transfer. It was painless for me and the interest is calculated up to the day it leaves your old ISA provider.
Before you go for it, check out some other ones.
I didn't bother changing in the end but there was a lot of talk around 5th April time about the National savings ISA and the A&L one.
Whatever you go for, you can easily beat 3.55%