should I move my cash ISA

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
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Legacy_userLegacy_user Forumite
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edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I have cash ISA's with the Halifax at the moment it's around £11,000.
Should I move to say M&S as they have a much better rate ?
I noticed today at the Halifax they have a fixed rate cash ISA at a better deal. You have to invest £3,000. I would have to take out of last years ISA to have the £3,ooo needed. Or should I just moved the whole amount to M& S. HELP !!
I'm not sure what to do.
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Replies

  • FieryBlondeScotFieryBlondeScot Forumite
    520 Posts
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    awhh i think the m/s cash isa has now closed. ive jus moved mine to intelligent finacne where u get an interest rate of 4.6 on both isa and their current acct if u take both, think its something to do with offsetting ;D
  • Noxid_2Noxid_2 Forumite
    13 Posts
    I have cash ISA's with the Halifax at the moment it's around  £11,000.
    Should I move to say M&S as they have a much better rate ?
    I noticed today at the Halifax they have a fixed rate cash ISA at a better deal. You have to invest £3,000. I would have to take out of last years ISA to have the £3,ooo needed. Or should I just moved the whole amount to M& S. HELP !!
                 I'm not sure what to do.

    First of all the M&S Mini Cash ISA Does not accept new customers. At the moment fixed rate ISA's are quite risky especially with the Bank of England constantly putting up interest rates (this time they considered 0.5%). My advice would be move those ISA's to the Abbey who offer a great rate ISA called the Postal ISA which will pay 4.85% from 1/6/04

    The only problem is Abbey currently have a backlog because of its popularity

    Remember do not withdraw your money, Transfer it or it loses its Tax free status
    Charles J
  • isasmurfisasmurf Forumite
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    Although according to BBCs moneybox program if you take your Abbey Postal ISA application into a branch they will process it straight away. Be interested to hear if anybody has tried this.
  • Unfortunately I have missed out on the M & S ISA :'(

    Still I have £3k in an ISA with N S & I :)

    I'm not sure whether to move it or not: you see,
    I like the security of N S & I and I have had no problems making occasional withdrawals to my current account,
    but the interest rate is pretty appalling next to Abbey or Smile.

    I would be grateful for any thoughts on this. Also, I have paid into my ISA during this tax year, would I be able to transfer my ISA to another provider before the next tax year?

    Cheers

    Leia
    I want to be a good saver, but I find it difficult to control my temptation to spend :o .

    I owe £1,247 more than I have in savings :( .
    .
  • lowri_2lowri_2 Forumite
    4 Posts
    I was a idiot - before I read Martin's book, I closed my NS&I ISA cause it only had £10 in it. I opened it in late April 2003, and put in £10 as opening balance. I then closed it in May 2004. I made no other deposits in it other than the £10 opening balance. Can anyone help me as to whether I can open another one in this tax year as I didn't deposit anything in this tax year, or does closing the account mean I have to wait till after April 6 2005??? ???

    Cheers

    Lowri
    Be ALERT - The world needs more LERTS
  • quinlanmdquinlanmd Forumite
    92 Posts
    You can only contribute to one ISA per tax year.

    As you have made no contributions this tax year to the ISA you opened in tax year 2003/4 (and then closed), you are free to open an ISA with any other institution you wish to for this tax year.

    Hope this sets your mind at rest.
    Up Tipp!
  • I have an ISA with NS&I, but I would like to move to a provider with a more competitive interest rate.

    Because I have already paid into it during this tax year and therefore cannot open up a brand new one until next April, I am willing to wait and drip feed my current ISA until March 2005. Basically, I am wondering whether if I stop making any payments into the 'old' ISA, will this still continue to earn me interest in subsequent tax years ???

    Thinking about my savings emotionally, I would like to keep a savings presence with NS&I, which is why I don't want to transfer my ISA now.

    Leia
    I want to be a good saver, but I find it difficult to control my temptation to spend :o .

    I owe £1,247 more than I have in savings :( .
    .
  • lowri_2lowri_2 Forumite
    4 Posts
    :) Thanks, much appreciated. I'll be getting on to that now!!
    :D

    Lowri
    Be ALERT - The world needs more LERTS
  • isasmurfisasmurf Forumite
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    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
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    Because I have already paid into it during this tax year and therefore cannot open up a brand new one until next April, I am willing to wait and drip feed my current ISA until March 2005.  Basically, I am wondering whether if I stop making any payments into the 'old' ISA, will this still continue to earn me interest in subsequent tax years  ???
    Firstly, although you have contributed this tax year you don't have to wait until next April to transfer your ISA. As long as you transfer the contributions you have already made this year to another provider you will not be breaking any rules by opening another ISA.

    Secondly, an ISA is just like any savings account, as long as there is money in the account it will continue to earn interest.
    Thinking about my savings emotionally
    Don't let Martin hear you say that! ;)
  • Thanks, saver smurf :)

    At the moment I have £225 that can be transferred, and my drip-feed money each month, standing orders for which can of course be cancelled :)

    And if my old ISA is left accruing interest, will this a/c become dormant or the funds frozen after a certain time, say 5 or 10 years ???

    Leia
    I want to be a good saver, but I find it difficult to control my temptation to spend :o .

    I owe £1,247 more than I have in savings :( .
    .
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