2010/11 Isa Question - Unused allowance advice

jay213

I have a 2009/10 Isa and have not got around to using my 2010/11 allowance. I was looking at quickly setting one up this month just to get my money in and then hopefully transfer both of the Isa's come April.

I was thinking of setting one up with halifax as I have an account with them and their rate doesnt seem to bad at 3.2%, but looking on the recommendations in the article on here I see that it says that the interest is paid "anually only". Does that mean I wont get any interested paid on the money until the year has ended? will I get paid interest for the amount of time that it has been in the isa account?

i.e say I leave it in there for 1 month and then transfer it out to another 2011/12 isa.

Once I open this Isa can I transfer my other Isa to it? or is it not worth doing so as there's only about another month left to the new tax year?

On last question, sorry. but if I decide to leave my money with halifax for 2010/11 Isa will it get interest for the full year from when I open it at 3.2% ? (say I opened it tomorrow, will that rate last until 7/3/12?)

rb10

Interest is always calculated daily, so you'll get interest for the length of time that the money is in the account.

The high rate lasts for one year from opening, so if you open it tomorrow, it will remain at the ISA Direct Reward rate until 7/3/12.

You can transfer ISAs to it at any time. Definitely worth doing so if you're getting less than 3.2% on your existing ISA.

I doubt you'll need to transfer it in April, as I'd be surprised if there's anything better available then.