Old ISA - what to do?

bunnygirl007

My son opened a cash ISA with Halifax in 2008, however he did not do anything with the money at the end of the year and it has been sitting in the account earning diddly squat in interest over this last year.

What would be the best time to transfer it into a new ISA? Should he do it now to get a bit of interest for this 2009/10 allowance and then transfer again for 2010/11 in April or should he just hang on and transfer in April when the new tax year starts? Any recommendations as to which ISA would be best would be grateful too.

Thanks

Mikeyorks

bunnygirl007 wrote: »

What would be the best time to transfer it into a new ISA?

Tomorrow ...... as it's getting a bit late for today!

If he is in the habit of just ignoring it ..... then transfer it to their 2 year fix currently at 3.5%. That way he can happily turn his back on it for a couple of years.

Should he do it now to get a bit of interest for this 2009/10 allowance

..... it has nothing to do with the current year allowance? Whether he's used it or not.

cantthinkofanickname

Make sure if it is moved to a new provider that his tax free status is properly registered.

alastair_h

cantthinkofanickname wrote: »

Make sure if it is moved to a new provider that his tax free status is properly registered.

Yes ensure you transfer the funds correctly using a transfer form, if you withdraw them they loose their tax free status. See attached for Best Buys - Transfer In section
http://forums.moneysavingexpert.com/showthread.html?t=401374

And yes if he hasn't used 2009/10's allowance he can save this as well if he's able - £3,600 now and then £5,100 from 6th April 2010 (as limit will increase).