advice cash isa

hedid2003

Hi all

I am new to this,so please forgive my lack of knowledge.

Here we go my cash isa expires 24/2/2011 after 12 months when the rate falls from 3.5% to 0.5%
what i would like to know is do i move to another better rate cash isa now and all the set up procedures,or do i hang on for maybe a better rate isa.
i found a isa that is paying 2.88%.
how do things work? do i speak to new isa provider and they will sort it?
or do i do everything myself?

One more thing i have extra cash and interested in investing in stocks and shares isa.
Is this area very complicated?
Thanks any advice would be greatly appreciated.

Yorkie1

You transfer ISAs by speaking to the new ISA provider - fill in their transfer forms, and they do the rest.

I would be careful of not doing anything before 24/2 which might cause difficulties with your fixed rate period, particularly if there is an interest penalty for early withdrawal. However, I think there is an option on the transfer form to instruct the transfer to occur at a set date rather than immediately - you'll need to double check this with the new provider.

General consensus is that often there are good deals released just before the end of the tax year, but who has a crystal ball? You'd need to compare the interest you'd receive @ 0.1% for a month, with the gain you may or may not achieve in the future by waiting for improved offers than now.

If your ISA is 12 months old, it sounds as though you have not opened and put new money in a cash ISA this tax year so you could consider that as an alternative to the S&S ISA you mention.

I don't know anything about S&S ISAs so will leave that aspect to others.

alastair_h

Yorkie1 wrote: »

However, I think there is an option on the transfer form to instruct the transfer to occur at a set date rather than immediately - you'll need to double check this with the new provider,

Yes you can tell them to transfer on a specified date (ensure the date is accurate or as per Yorkie1's comment you could potentially loose interest).

You can also write "on maturity/end of fixed rate period" if unsure.


Instead of hanging on for a better rate you could transfer now and use next years allowance of £5340 to take advantage of any better rates which may potentially be around from 6th April 2011 (assuming you have used 2010/11's allowance).

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