changing Isa

thomas1

HI i have been gone a while and havent posted very much , my question is regarding a isa . I have an Alliance and leicester Direct cash isa issue 4 , my statement has just landed and it has paid just £50 for my years £6770 deposit . I didnt pay any thing into the account last year .I am considering moving the amount to another account . Will the interest rate on the account always be poor or should I leave £1 in the account when I transfer out so that I could transfer back if the rate gets better than where i transfer to as april is coming . Is their a value in doing this .
Also interested in where i should put it .
ps. wife in same position / both working and 20% tax payers .
many thanks for your comments .

scottishblondie

I doubt the interest rate will improve on an old account. Open a new ISA with a better interest rate and transfer in. Just make sure you follow the proper transfer procedures.

Stompa

thomas1 wrote: »

HI i have been gone a while and havent posted very much , my question is regarding a isa . I have an Alliance and leicester Direct cash isa issue 4 , my statement has just landed and it has paid just £50 for my years £6770 deposit .

Looks like you're currently getting either 1.10% or 0.1% (it depends on your account number) see here:

http://www.alliance-leicester.co.uk/savings/interest-rates.aspx

Either way, I'd transfer to somewhere offering a better rate. Your current ISA rate isn't likely to improve, and there's no point in leaving £1 in the account just to keep it open.

Mikeyorks

thomas1 wrote: »

Will the interest rate on the account always be poor

Yes. So it's absolutely pointless leaving it open even with a minimum sum.

If you take little notice of your ISAs ....... move them to a fixed rate rather than a variable rate. At least you can turn your back in comfort that way. But ..... i wouldn't fix for more than a year at the moment as rates will improve.