advise needed on new Isa please

minstrelmerrymaker

We currently have a very small amount of money in Barclays Isa Gold which paid just over 2%... ie £336 which has only been in there for 2 months.

The question we have is..... we are going to open the new Gold Isa 2 which pays just over 3%

Should we withdraw the £336 out of the original Isa account and put it into the higher interest gold Isa 2. We probably wont reach the maximum yearly rate as we are paying as much off our mortgage that the Bank will allow, then putting any monies left over at the month into the Isa account.

Many thanks in anticipation,
Michelle

OneADay

Depends on the account conditions - if the 2% is conditional on the account being open for 12 months or something, then you might lose interest.

Saying that - its very tiny amount of interest on £336 so you are not going to lose.

Best thing would be to talk to Barclays about changing the account - if they can't then move the money yourself.

scottishblondie

If you can transfer previous years ISAs into the new one, then you should do that as that will not affect the allowance for the new ISA. Otherwise if you will not use the full £5100 for 2010-11 anyway, then you might as well withdraw the money and pay it into the new ISA.

minstrelmerrymaker

Thanks for the reply will speak to Barclays and will probably withdraw and re-invest in the new Isa