First Direct to launch 6.25% mini cash ISA

Milarky

sly_dog_jonah wrote:

Damn this is all confusing!

I have a 2004/5 MiniISA with M&S Money with the maximum subscription for this year, plus 4 year's previous subscriptions which were transferred across to M&S in May.

So can I transfer the whole of this ISA across to First Direct or only this year's 3k?

Just the whole of this year [2004-05] before 6th April and then upto £3,000 as a completely new subscription straight into the FD ISA. Leave those previous years' subscriptions where they are in M&S for now and maybe transfer the full FD ISA back there in October

[I think this is worth doing if -like me - you haven't previously transferred an ISA for a better rate as you will then see how the process works first hand. It's a 'hobby thing'!]

monki_man

westernpromise wrote:

Now I'm really confused.

They'll let you transfer in £3,000 this year and £3,000 next, but not your whole existing ISA balance held elsewhere? And if you want to transfer out again after the 6.25% bit expires, they'll withhold all the interest?

Exactly, dont know how yo can only transfer up 2 three grand to FD ISa say if you have a total of £12,000 in another ISA. And rightly pointed out you can't have more than one isa account per person. So I reckon FD just want you to close your existing ISA and just join theirs. In my eyes it aint worth it if you lose all that money you've built up.

isasmurf

monki_man wrote:

And rightly pointed out you can't have more than one isa account per person. So I reckon FD just want you to close your existing ISA and just join theirs. In my eyes it aint worth it if you lose all that money you've built up.

You can have as many ISAs as you want to. You can only put money into one per tax year.

simonkirkland

First direct told me I could transfer my previous years ISA's to them (with the interest.) They are sending me a few forms?

What gives people the impression that they can't transfer?

Sorry if I'm being thick...

I have 2 ISA from a few years back with approx £3500 in each (with smile).
I also have a 2004/5 isa with M+S which only has £1100 in it.

Am I able to transfer all these to FD at their 6.25% interest? and still move them out in October?

Thanks

simon

dealseeker

Easy application process as existing customer and funds deposit from current account.
Remains to be seen how quickly they finalise admin but they claim it will be set up within 48 hours.....

Will be able to compare with transfer to other providers in October ...;)

Reaper

simonkirkland wrote:

What gives people the impression that they can't transfer?

Sorry if I'm being thick...

I have 2 ISA from a few years back with approx £3500 in each (with smile).
I also have a 2004/5 isa with M+S which only has £1100 in it.

Am I able to transfer all these to FD at their 6.25% interest? and still move them out in October?

I'm just going by what is on their web site and what they said on the phone. If you managed to transfer all your ISAs I will be very interested. However the following has been cut and paste straight from their web site (application page)

first direct's mini cash e-ISA has a maximum subscription limit of £ 3,000. Transfers made into the e-ISA (from mini cash ISAs held elsewhere) are limited to £ 3,000 plus, if current tax year’s subscriptions are being transferred, any interest earned on that subscription.

That sounds to me like only 1 year's ISA can be transfered.

simonkirkland

I've filled my transfer forms in tonight. They sent me 2 forms as I said I had to previous isa's. If both isa's have £3000 plus interest then this is way over their limit. I have one isa with £6700 in it (made up of 2 years isa's so these are affectively 2 isa's) and a further one with £100. I've filled the forms in to try and transfer both of these. I also had a, all be it standard, letter from them with the forms saying "you have been approved to transfer your exisitng isa from another provider to first direct, forms enclosed"

I've also applied for a new isa with them as I haven't opened a
one this year as I didn't have the money to save till now...

Anyone else trying to transfer to FD. Got to be worth a try at 6.25%..

Simon

lipidicman

lipidicman wrote:

Great link

The article warns about the transfer fee on the A&L isa which is good.

But I just discovered from that article that my portman ISA has a similar fee (£30). I fell for that when I was a little less wise!

The first direct option looks good but I am a little reticent about transfering ISAs so often

Checked with portman and this started in January 2005 and is NOT retrospective, woohooo! Im free! I took it out in late April 2004

rockrat

so if the standard rate does not alter at all, after october it returns to 4.35% that would make an average of 5.25% over the year, which is not the best out there, but then not the worst. As an avid supporter of FD and the excellent service they have given in general banking then i am gonna go with it, unless anyone knows something different that would make me reconsider...............!!

dealseeker

dealseeker wrote:

Easy application process as existing customer and funds deposit from current account.
Remains to be seen how quickly they finalise admin but they claim it will be set up within 48 hours.....

True to their word account set up online within 48 hours. Initial deposit there and able to operate right away.

I have not attempted to transfer other ISAs into the account.