Cash ISA Question

Jackop

Morning guys,

In April ill be at the end of my 1st years full ISA saving!

However im a bit confused, obviously the lovely rate is going to drop and ill have to transfer it into a new ISA.

Does that mean (once i have transferred it) i have used up 2011's allowance or am i free to open another one and save another £5100 (or whatever it is)

Im a bit confused!:o

Cheers everyone

steveksullivan

..... and you have an allowance of £5100 'new money' each year - so you can transfer the old ISA and open a new ISA with this years money.

If the ISA you choose for this years 'best rate' also accepts transfers in, you MIGHT consider funding the old ISA first with this years money, then trasferring the lot in one go - sometimes simpler .....

Jackop

steveksullivan wrote: »

..... and you have an allowance of £5100 'new money' each year - so you can transfer the old ISA and open a new ISA with this years money.

If the ISA you choose for this years 'best rate' also accepts transfers in, you MIGHT consider funding the old ISA first with this years money, then trasferring the lot in one go - sometimes simpler .....

Ahh i see now, so after 2 years ill be transferring 2 ISA's and have another lot of 'new money'

Got it!

Thanks

Mikeyorks

Sometimes - when rates are better than now - it's preferable to go for a 'fixed rate' ISA and over several years. As that saves the annual chore of looking around / moving money. I've still got a couple at 6% - sadly ending in April.

missile

Please note, some do not allow partial withdrawals. If you choose one of those you might want to keep last years ISA and this years seperate. This will give you flexibility if you need to cash one in, sometime in the future.

I found it was a real hassle transferring. To same me that chore for the next 3 years, I decided on Nationwide 3 year cash ISA fixed @ 4.00%