Moving a fixed rate isa

LittleD_3

Hello everyone, I could use a little help here please.

I have a fixed rate (2.6%) ISA with Kent Reliance fixed until 31.08.11 - if I find another fixed rate ISA that offers a better interest rate could I move the one from Kent into this without losing out on any interest, thanks

Mikeyorks

Highly unlikely ...... what do the T&Cs show? There's normally an interest penalty of 90 / 180 days if you decide to opt out of a fixed term account early.

Current KRBS fixed rates appear to operate on a 100 day penalty ..... and they will reduce the capital, if not enough interest accrued.

MarkyMarkD

It's 100 days. Same applies to every single KRBS fixed rate ISA.

It is not worth switching out when there is only 6 months less, whatever the rate you could get elsewhere - because you will almost definitely get the same, or better, fixed rates in 6 months time. Losing 100 days out of 6 months is more than half, so you'd have to be getting around 5.5% elsewhere to make it worthwhile, which you can't.

LittleD_3

Thank you both for your reply.

I'll leave the Kent Isa where it is until maturity date!

I can still open a new ISA for 2011/12 though can't I?

What can I do with the Kent Isa when it matures if I open a new ISA in this new tax year?

Sorry.....just when I think I've got this sorted out, something else throws me!

pem2

LittleD wrote: »

Thank you both for your reply.

What can I do with the Kent Isa when it matures if I open a new ISA in this new tax year?

If Kent do not offer you a new rate, you can transfer it to any provider that allows transfers in and that need not be the same as your new 2011/12. Looking at the attached thread is a good place to start.
https://forums.moneysavingexpert.com/discussion/401374

LittleD_3

thanks, I didn't think of that! Bit more help needed please!

I also have last years 2010/11 Nationwide Champion ISA which matures after 12 months of opening this will be around August this year and I have been regularly adding funds to this, I think the Kent was a 15 month fixed rate from 2009/10 ISA allowance.

So, if I cancel any more funding to the Champion ISA so that I don't contribute to 2011/12 ISA allowance, leave both the Kent and Nationwide ISA to reach maturity, I can open this tax years ISA after April 6th with whom I choose and add funds, then transfer the other matured ISAs to either the one opened this year or transfer to another provider with better interest rates.

Hope you can make sense of this plan and correct me if I'm off track.............I do try with to get the best deal out of these ISAs, but I just get really confused with all the regs, thanks again!

pem2

LittleD wrote: »

thanks, I didn't think of that! Bit more help needed please!

I also have last years 2010/11 Nationwide Champion ISA which matures after 12 months of opening this will be around August this year and I have been regularly adding funds to this, I think the Kent was a 15 month fixed rate from 2009/10 ISA allowance.

So, if I cancel any more funding to the Champion ISA so that I don't contribute to 2011/12 ISA allowance, leave both the Kent and Nationwide ISA to reach maturity, I can open this tax years ISA after April 6th with whom I choose and add funds, then transfer the other matured ISAs to either the one opened this year or transfer to another provider with better interest rates.

Hope you can make sense of this plan and correct me if I'm off track.............I do try with to get the best deal out of these ISAs, but I just get really confused with all the regs, thanks again!

I would suggest you fund, rather than cancel your NW Champion ISA until the 5th April i.e use up your tax free allowance of £5100 and then from the 6th April you can go to whoever with your £5350 or even add to your Champion. I've got the NW eISA 2.90% (consolidated from previous years) and the fixed from KRBS but this current year I went for the Coventry BS 2yr fixed at 3.5%.