First Direct ISA advice please!

Parisian

I think those are fine for other amounts.... I keep other savings in long term fixed rate taxed accounts. But I always fill up my ISA on April 6th every year.

In the past, there have been some extremely competitive interest rates with ISA's.... as much as 12% with A&L. With the current climate, things things have changed.... but we cannot underestimate or predict how recent public complaint will influence ISA rates.

So my question here really is whether to top up my current ISA (which has a competetitive rate of 3.15%) on April 6th and move it all at the end of May.
Or to open a new ISA to get the top rate for this years allowance, and assign myself to having a lower rate for my past accumulation in view of the often lower rate for transfer-ins.
What is everybody else in the same position doing?

Ditch_Crawler

rb10 wrote: »

But you can do exactly the same with ISAs ... fix them for several years at a time, then you don't lose out on the time that it takes to transfer them every year.

Well, that's fine then! Maybe the scaremongers in today's papers (as well as on this site...) should make that more clear.

Parisian

Headlines come and go, ISA rates rise and fall........ but they are still a worthwhile place for people who want to save 1. long term 2. modest amounts

Parisian

Ditch..... ditch the Daily Mail!

rb10

Parisian wrote: »

So my question here really is whether to top up my current ISA (which has a competetitive rate of 3.15%) on April 6th and move it all at the end of May.
Or to open a new ISA to get the top rate for this years allowance, and assign myself to having a lower rate for my past accumulation in view of the often lower rate for transfer-ins.
What is everybody else in the same position doing?

Or, put your 2010/11 allowance in the highest rate that you can find on 6th April, and then in May move your existing ISA to the highest rate that you can find then (that permits ISA transfers). You would then end up with two accounts, but you should be able to merge them together at some stage.

Ditch_Crawler

Parisian wrote: »

Ditch..... ditch the Daily Mail!

It was this morning's Today programme, and the front page lead story of the Times! I am in a slightly similar position to you, trying to decide what to do about my 2010/2011 allowance, and my 3% 1stDirect ISA which implodes in November. The difference is that I am strictly looking for short-term gains because in the middle of 2011 I will need all the readies I can get my hands on!

Ditch

Parisian

rb10.... that is exactly what I have been asking about (your suggestion is my option 2)!

Option 1. First Direct - put in £5100 on 6th April. At end of May, transfer current and past allowances (i.e. whole ISA) to account with best rate available.

Option 2. Open best rate account on 6th APril for this years £5100 allowance. Come end of May, find best account that accepts transfers in for past ISA savings being held in First Direct account.

david78

There's a lot of nonesense being talked about ISAs in the media and press at the moment. Someone was saying on the TV that the average rate was 0.5% or lower! Pfff. Most people who use this forum will be able to get a better than average ISA. Still very worth while.

Ditch_Crawler

Parisian wrote: »

Option 1. First Direct - put in £5100 on 6th April. At end of May, transfer current and past allowances (i.e. whole ISA) to account with best rate available

If the new money is in the 1stDirect ISA for less than two months, and it then takes more than a month to transfer it, then you will lose around half of the interest earned on the new money during April and May.

I am broadly in agreement with yesterday's media stories the gist of which is that the banks capitalise on the conventional wisdom that anything which is tax-free is bound to better than anything which is taxed - that is to say, they manage to convert most of the tax advantage into extra profit for themselves

Ditch

PauliPauli

Parisian wrote: »

I opened a First Direct ISA with a fixed rate of 3.15% until the end of May 2010. After this date it will convert to a v. low rate (not sure of exact number, but will def need to transfer!)

I usually fill my ISA on the first day of the tax year, but am unsure of what to do this year. Shall I:

1. Arrange to transfer £5100 on April 6th into the First Direct ISA & look to transfer the whole amount (£20k plus) to a transfer-in ISA after the end of May. (Will I have any problems with finding an ISA which accepts 2010/11 and past years as a transfer in?).

2. Open a new ISA (e.g. the 3.2% one mentioned) - and deal with transferring my past ISA's somewhere else after May.

I kinda like having all my money in one place!
Are other people in this position?
Any advice would be much appreciated!

I was in identical posistion as yourself, similar figure, except my FD ISA expires end apr, what I did was apply for a 4% 3 year M&S ISA .... http://forums.moneysavingexpert.com/showthread.html?t=2112837&page=9

might be worth ringing them to ask if you can get the 4% rate if you send transfer form off today, instead of the new rate that will be coming out