ISA Query

bear.1973

Hello,
I have an ISA which i opened with Abbey in Sept 08, in Sept 09 the rate dropped to 0.5 and is sitting there earning next to nothing, i have made a few deposits and withdrawls from it through out this financial year.

I put the max amount in , but then had to withdraw some cash, and i understand you cant put anymore in once you have used your limit of £3500, so am left with a balance of approx £2000 earning 0.5 interest.

I dont know what to do now, i have some more savings and would like to open another ISA as of 6th April, the one from Santander looks good at 3.5%, has the limit gone up to £5100 for everyone after 06.04.10?
Also, Santander have advised me that they can change my old ISA back to a Direct ISA and put it at 2% as well as open a new one for me in April for my new savings.

Would it be wise to do this? is it a good option?
Could i transfer my old ISA to another bank/ BS and put more funds into it? Or can i only transfer what is in the old ISA and leave it at that?

Would i be better off closing old ISA, taking the cash out and putting this into new 3.5% ISA to up the balance?

As you can see am a little confused!:o
thanks in advance.

Baldur

bear.1973 wrote: »

Could i transfer my old ISA to another bank/ BS and put more funds into it? Or can i only transfer what is in the old ISA and leave it at that?

You could select a new provider that accepts ISA transfers, complete that provider's transfer form and let them arrange the transfer of your full balance. The problem is that you only have until 5th April to subscribe any remaining balance of your 2009/10 Cash ISA allowance before it is lost forever.

Would i be better off closing old ISA, taking the cash out and putting this into new 3.5% ISA to up the balance?

That's your decision, depending on your own circumstances.

If you don't think that you would be able to use your full £5,100 Cash ISA allowance for the 2010/11 tax year without the funds in your old ISA, it's certainly an option.