My first £3,000 to be untouched. which mini ISA?

jinkssick

as basically just want to dump it to get the most interest is National Savings & Investments (NS&I) at 5.55% the best payer?

Just a question that was not covered by Martin on his instructions but after the year period can I then withdraw the money out with the interest say (approx £3,500) or can I only move it to another ISA.

And if it stays longer than the 6th of April am I entitled to be with them for another year and If i decide to leave, lose the interest?

thanks

jamesd

NS&I is the highest rate of the easy access ones. A good choice.

You can withdraw the money, leave it there or transfer it to another ISA provider using a transfer form from that provider. You can do this at any time, transferring as often as you like. You'd get the interest if you were closing the account or if it was when it was due anyway. Otherwise you would have to wait for the next date when interest is due to be paid.

You are not required to be with them for another year if you leave it with them after the 6th of April. You can leave it with them, add to it (if they still offer it) or move it, your choice.

You would not normally lose the interest, though some other providers do have penalties for withdrawing that can reduce the rate or make some time free of any interest payment.

You can have any number of ISAs from past years with different providers if you like, there's no requirement to have just one. Just that you can only have one active one that you are paying into each year and that you can only change that one by transferring that active ISA and the contributions into it in the current year. Contributions from past years could be left there if the provider allows that.

jinkssick

is Scarborough Building My Savings ISA any good?

seems you can pay in (£250 a month max) so 12 months is £3,000 but they are paying 6.25%

jamesd

Depends on the interest you get on the 3000 when it is not in the account. If you have 3000 today to save and a 5.45% savings account at basic rate tax you keep the money in unti you can put it in the regular saver, that pays 4.36% after tax.

6.5 months of 250 = 1625 at 6.25% = 101.56
5.5 months 0f 250 = 1375 at 4.36% = 59.95
total 161.51

161.51 on 3000 = 5.38%. That's below the 5.55% NS&I rate so this account is less good than the NS&I account if you have 3000 available now.

It's a better deal if you are accumulating the money month by month, so you don't have half of the money getting only the normal savings account rate. Might be an idea to start contributing to it in the next tax year.

That 6.5/5.5 months split is just the way you work out the interest on regular savings accounts - it comes to 6.5 months of the regular saver rate and 5.5 at whatever the other rate is.

CopperPlate_2

Found Yorkshire Building Society's E-ISA to be easy to manage at 5.4% which is a shaving off the top rate 5.55%. YBS I've found to be good at passing on interest rate rises too.