What to do

swine

Hi.
I have a 10K ISA with Santander. Got a letter this morning which reads.( End of Bonus Notification). goes on to say it drops from 2.75% to 0.50% on 31st March. If I can find another 4K they will give me 2.50% next year, fact is I can't at the moment, so what do I do with the 10K ??. Help.
Regards.

Lokolo_2

Hello,

In any case, you should look at new ISA options for your existing ISA, Have a look at the Banking/Saving tab at the top of this page and then navigate to Tax-Free savings. The right one for you will depend on your circumstances.

Do you need access to the money? If yes, then select an instant access ISA, if no then you need to decide how long you'd be prepared to tie the money up for, there is the risk that rates might rise so is it worth fixing for a period of 5 years for example? Nobody can predict the future so you need to make that decision!

Transferring your ISA from one provider to another doesn't affect your annual subscription limit at all so you can do it as many times as you like, be sure to act quickly though because the transfer process can take a while, and you won't want to be earning 0.5% for much longer I guess :j

swine

Hi.
Thanks for that. Would I loose the interest on the 10k if I switched before 31st March ??
Regards.

Lokolo_2

swine wrote: »

Hi.
Thanks for that. Would I loose the interest on the 10k if I switched before 31st March ??
Regards.

Hi, No problem :beer:

Not at all, interest is calculated daily and would be paid up to the point when the £10k leaves your current ISA to go to the new provider. :j

Mikeyorks

swine wrote: »

so what do I do with the 10K ??. Help.
Regards.

On current offers .... move it to the Halifax 2.8% ISA.

It's 'easy access' so - if the pundits are right, and there are 3 x BofE rate rises to come in 2011, you won't be locked in. And will be able to move to a better rate at relative leisure .... whilst earning better than your existing rate.

psychic_teabag

See Martin's article on cash-isa transfers here : http://www.moneysavingexpert.com/savings/cash-isa-transfers

LilithsBrother

I received the same letter.....If the Halifax is offering 2.8% wouldn't it be better off to transfer to Santander's Loyalty Flexible ISA which is offering 3.00% ?

blueberrypie

LilithsBrother wrote: »

I received the same letter.....If the Halifax is offering 2.8% wouldn't it be better off to transfer to Santander's Loyalty Flexible ISA which is offering 3.00% ?

The Loyalty Flexible ISA does not allow transfers in.

swine

Hi.
Iv'e tried the Halifax at 2.8% but if you have put any funds into you're transfering isa in this tax year you can't transfer. At least thats how I have read it. Could anyone verify ??.
Regards.

swine

Hi.
Ive looked at the Halifax 2.8% but as I read it you cant transfer in if you have funded the isa this tax year. Thats how I read it, its very confusing, can anyone verify this ??.
Regards.

Mikeyorks

That's not correct ....... you can transfer if you've funded an ISA this year. That's the majority purpose of the transfer process.

Just respond 'no' to the question causing the problem ('have you contributed .... etc')