ISA advice please

layts12

Hi

I currently have my ISA with the Halifax but the interest rate has now dropped and I need to transfer to a provider who has a higher rate.

If I change provider now, will I receive the higher interest this April? Or do I have to wait until April 2012 until I receive the interest?

Sorry if I've not explained that very well.

Any advice would be much appreciated.

Thanks!

CLAPTON

when you transfer the halifax ISA they will add any interest owing

The new ISA will pay interest according to their T&Cs; if they pay the interest in april then you will get the interest earned from now until april 2011

Loughton_Monkey

There is no 'magic' in waiting for next April.

The 'normal' and most efficient thing to do when a cash ISA comes to it's 12-month bonus rate end, is to shop around for the most appropriate, and highest rate Cash ISA that allows transfers in. You then open such an ISA and transfer the old one in. The old one will pay interest up to date of transfer (but only at the now lower rate).

If you have not contributed this tax year, then (of course) you could choose to make a contribution to the new one when you start it. And/or, of course, you can put more money in after April 5th. That's up to you.

There may be some form of 'competition' going on for 'new money' as we approach the end of this tax year. Possibly there might be some 'good' deals coming along. But simply to wait 'in case' means you are 'losing' high interest between now and then. If you were to start a new one now, transferred the old one in, and then found a 'better' account available in April, there is nothing to stop you (a) making your new tax year contribution to that new 'better' ISA, and (b) transferring the old one yet again.