Currently With HSBC :(

sniperpenguin

Just beginning to get into all this - so I now KNOW my current rate for my Mini Cash ISA is utter tosh

I've done a bit of trawling around various best-buy tables and providers, but there are are too many different caveats (sp) appearing! What Im looking for is an ISA that is:

- managable online
- 5% +
- able to accept transfers from existing ISA's without penalty (I have just over £5,000)
- interest paid monthly
- No withdrawl restrictions preferable.

Can anyone help?

Paul_Herring

sniperpenguin wrote:

- interest paid monthly

Out of interest (pun not intended) - why do you have this requirement?

sniperpenguin

Because I want to see my money grow and I'm under the impression that if I "transfer out" at a later date, I wont get my interest!

zag2me

Natwest's Mini ISA shows interest monthly, its really nice seeing your money grow.

Its 5% and has one of the best on-line sites, and meets the stakeholder standards.

http://www.natwest.com/personal02.asp?id=PERSONAL/SAVE_AND_INVEST/ISAS/MINI_CASH

Personally I use Halifax, but they only calculate the interest yearly which is really annoying. But you dont loose anything, its just a psychological thing.

SeanW

You most certainly won't lose interest that's paid annually when you close or transfer a bank account, the interest will be paid as its accruing all the time.

Bradford & Bingley E-ISA Pays 5.3%, online only, accepts transfers in, interest paid monthly or annually, you can withdraw as per normal ISA rules.

Paul_Herring

sniperpenguin wrote:

Because I want to see my money grow

Understandable, however..

and I'm under the impression that if I "transfer out" at a later date, I wont get my interest!

The only way you won't get your interest is if there are clauses in expressly specifying this (no interest in the month of withdrawl for example) which you've mentioned anyway.

Interest on yearly paying accounts is paid pro-rata, so, for example take an <koff> imaginary savings vehicle paying either 5.32% gross monthly or 5.45% gross annually (an AER of 5.45%) and put £1000 in at the start of the year, and then withdrew the lot plus interest after 1/2 a year, the monthly intrest option would have built up to £1026.88. The yearly option, paying 1/2 a year's interest on your money would pay you £1027.24 on withdrawl.

(Calculations assume months of exactly 1/12th a year, and interest paid gross.)

sniperpenguin

SeanW wrote:

Bradford & Bingley E-ISA Pays 5.3%, online only, accepts transfers in, interest paid monthly or annually, you can withdraw as per normal ISA rules.

I've just checked out the site and noticed a few things..

1. It mentions both 5.18% (monthly gross) and 5.30% (gross per annum). I take it the 5.30 is taking into account compound interest? or do you just get a lower rate for monthly interest?

2. Where on the site / info page are transfers mentioned.

3. Would the transfer count as the £1,000 required opening balance?

FINALLY, a silly question :rolleyes: Do I have to wait until April before I can "transfer" the ISA, since I have already used some of my allowance?

Paul_Herring

sniperpenguin wrote:

It mentions both 5.18% (monthly gross) and 5.30% (gross per annum). I take it the 5.30 is taking into account compound interest? or do you just get a lower rate for monthly interest?

The 5.18% monthly amount is equivilant to 5.3%AER - interest given in month 1 earns interest in its own right in the next 11 (compound interest)

Do I have to wait until April before I can "transfer" the ISA, since I have already used some of my allowance?

If you've use up some of your cash ISA allowance for this year, you MUST transfer that (just this years contributions) to the new one before adding to it. Or wait until April, when it doesn't matter.

sniperpenguin

If you've use up some of your cash ISA allowance for this year, you MUST transfer that (just this years contributions) to the new one before adding to it. Or wait until April, when it doesn't matter.

So I cannot just transfer the whole £5K in one go, and:
1. still have my 3K allowance left (if I wait until april)
or
2. still have what is left of my current years allowance if I transfer now?

Paul_Herring

sniperpenguin wrote:

So I cannot just transfer the whole £5K in one go, and:

Sorry - I forgot the point of your original question.

Short answer - yes you can.

Long answer - your cash ISA can be thought of as split up into two lumps - all contributions you've made this year (if any,) and all contributions you've made in all previous years. These can be treated as separate 'pots'.

'This years' contributions MUST all be kept with one institution until the end of the tax year (you can move institutions mid-year) but it must be all of it - you cannot split this up. (Otherwise you'd end up with 'two ISAs' which isn't allowed)

'Previous years' contributions can be split up how you want - even keeping it with 'this years' or spreading it around numerous institutions.

In April, 'this years' pot joins the pot with 'previous years' and ''this years' post starts at zero.

1. still have my 3K allowance left (if I wait until april)
or
2. still have what is left of my current years allowance if I transfer now?

Not too sure what you're asking here, and in lieu of your actual numbers, I shall assume your £5000 is split:

Previous year's contributions total: £4000
This year's contributions: £1000

Whatever happens, if you wish to open an ISA with another institution, you MUST transfer that £1000 to the new institution before contributing up to a further £2000 before April.

You may, if you wish, also transfer the £4000, which will have no effect on your remaining £2000 allowance. So by April, no matter where you ISA's end up, you can build it up to £7000 by April, and in april you get another £3000 allowance.


(Note - these are all inter-institution transfers; withdrawing, then re-depositing will use up your allowance. I'm assuming you know this, but just in case anyone reading this doesn't know..)

Any clearer?

SeanW

I do believe the transfer in covers the £1000 minimum, although you could contact them to confirm this.

It doesn't mention transfers in on their product page, but the first question when you apply is do you already have a 2006/2007 ISA, and if you say yes, it asks if you want to transfer it in.