Moving from B&B to NSI? Should I?

jamfool

I have a Cash ISA I opened at Bradford & Bingley in Sept 06. I didnt realise the interest rate would change soon after this and now B&B dont seem to be as competitive as they once were. I invested the full £3000.

Im now considering my options and the NSI cash Isa seems to be the better payer now. Do you think its worth me closing this account and then reopening one with NSI?

I suppose the question is how reliable is it that NSI will be the better account over the couple of years? Since I cant transfer the money I would have to close and then re-open.

Thanks

Jam

tom188

No.
You cannot transfer the money into the NSandI ISA, it does not accept transfers, only new money.
You cannot take the money out of the BandB ISA and pay it into the NSandI ISA because youve used up the 3k your allowed to this year (you can only make one 3k deposit).

NSandI have changed there rate in light of the new base rate, i dont think BandB have yet. Hang on in there.

ManAtHome

You can't open another ISA this tax year even if you close the B&B one. Maximum investment in any year is £3k - the catch is that this the total allowed not the net amount.

For example, if you put say £2k into an ISA then closed it, you would only be allowed to put £1k in any other ISA you opened in that tax year.

jamfool

Of course yes, I wasnt thinking. Thanks. Ill hold off for a bit and see what B&B do.

Thanks guys

ManAtHome

B&B rates will probably go up ...eventually (early December). NS&I have been very quick off the mark raising rates unlike most of the others - at least you know who to check first next year.

To get things in context, even a 1% difference is less than 60p a week (although better in your pocket than theirs...)