ISA Help!

graham919

Hello

I need some advice. I have £10k in an ISA. On the 6st April i have £5k to hopefully put in but what should i do?

A) pay in to the current ISA which is 2.75% interest with 10k in therefore taking it up to 15k?

Leave the current ISA and pay the 5k into a new one that offers 3.50% interest?

What do people do? What would be advised? Would it be better in the long run as option A? Or do people have mutiple ISA's?

Please help! im no good with these things

Thanks

lisyloo

First thing I would do is calculate the value of transferring.
So if you transfer your £10K you'd get an extra 0.75%.
That's £75 per year which IMO is worth having.

Does the 3.5% one accept transfers in?
If so, why don't you transfer the existing 10K as well as put £5K in?

EDIT - if it's A&L, it doesn't accept xfers in.

graham919

Lisyloo...

I can only transfer 5k into the existing ISA which has 10k in at mo but with 2.75% interest

Or

The 5k into the new isa with 3.50% interest?

The 3.50% one does not accept transfers

Whats best?

focae

The A&L 3.5% ISA is only available for the current Tax Year. You will have to wait and see what is available from 6 April.

Then put your 5100 in the account with the highest interest rate (although you may have to make a compromise on rate if you would prefer the rate to be fixed).

Then transfer your existing account to the best provider that accepts transfers - this may be the same as your new provider or it may even be best to leave it where it is.

No need to panic............there will be offers out there for next years ISA allowance nearer the time.

graham919

Ok so just for understanding...

as i cant pay no more into my isa and its 2.75% with 10k in ...leave that.

but after april the 6 when i can put 5k into an isa put it into the 3.50% isa.

this will then leave the 10k in the 2.75 account, as transfers are not allowed in the 3.50% account.

By puting the 5k in the 2.75 isa with 10k would be a mistake right?

focae

after april the 6 when i can put 5k into an isa put it into the 3.50% isa.

If it is still going on April 5

By puting the 5k in the 2.75 isa with 10k would be a mistake right?

If the 3.5% Isa is still going - yes - a mistake of 0.75%

Just_landed

You can carry on and pay new money into say the A & L @ 3.5% no problem and you can also transfer old money into another separate Isa as well at a better interest Rate in the same tax year, the words that count here are transfer old money. Somebody will correct me if I am wrong.