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Cash ISA question
nax_rhe
Posts: 1 Newbie
Can someone confirm that the following about cash ISAs is correct?
If I open a Northern Rock 1 Year Fixed ISA at 3.05% and pay in this year's (10/11) allowance this will happily sit there earning 3.05% until 15/1/12. After this it will revert to a variable rate account, which will almost certainly be less.
From 6/4/11 I can then open a second ISA and pay in this year's (11/12) allowance. Assuming this is a variable ISA, I can transfer this at any point to another ISA (assuming the new ISA allows transfers in) to get a better interest rate, if i want.
From what I understand the above is correct. What I'm not sure about is my options with the fixed rate ISA. Am I locked into that ISA until the rate ends, or is it still a normal ISA in that I can transfer it at any time? I.e. if I wanted to consolidate both year's ISAs into one would it be possible, or would I have to wait until January 2012?
If I open a Northern Rock 1 Year Fixed ISA at 3.05% and pay in this year's (10/11) allowance this will happily sit there earning 3.05% until 15/1/12. After this it will revert to a variable rate account, which will almost certainly be less.
From 6/4/11 I can then open a second ISA and pay in this year's (11/12) allowance. Assuming this is a variable ISA, I can transfer this at any point to another ISA (assuming the new ISA allows transfers in) to get a better interest rate, if i want.
From what I understand the above is correct. What I'm not sure about is my options with the fixed rate ISA. Am I locked into that ISA until the rate ends, or is it still a normal ISA in that I can transfer it at any time? I.e. if I wanted to consolidate both year's ISAs into one would it be possible, or would I have to wait until January 2012?
0
Comments
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What I'm not sure about is my options with the fixed rate ISA. Am I locked into that ISA until the rate ends, or is it still a normal ISA in that I can transfer it at any time? I.e. if I wanted to consolidate both year's ISAs into one would it be possible, or would I have to wait until January 2012?
Looking at the website: http://www.northernrock.co.uk/savings/isas/fixed-rate-isa_issue150/ it seems to me that you will be able to transfer your money out when you like ... but it will cost you 60 days interest. The rules imposed by a bank are separate from the ISA rules laid down by HMRC.
Why not go into a branch and ask ... or if you're not close to a branch, phone them up.
David0
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