Next step for my ISA ?

montycat_2

I have a Pearl mini ISA that I took out in 2001 (5 year term) .

I can now withdraw it without penalty and it is worth £2274.86-it is adding a daily bonus (can't remember if it's £1.49 or £149 _forgive my ignorance )

Is it worth keeping it there just to gain more ,close it and put the money in another ISA ,take a monthly income from it .

All alternatives are welcome and ,will be useful .

Thankyou in advance

jamesd

Is it a cash ISA? If it is, what is the interest rate? A daily bonus of 1.49 would be an interest rate of more than 24% on 2275 (two thousand, not twenty thousand), so it seems unlikely that it is a cash ISA. It's not practical to say what to do without knowing more about it.

montycat_2

It's a mini ISA bonus account.Is that enough info. or what other info.do you need ?

jem16

montycat wrote:

It's a mini ISA bonus account.Is that enough info. or what other info.do you need ?

Is it the one referred to in this thread?
http://forums.moneysavingexpert.com/showthread.html?t=166663

jamesd

If it's the Pearl ISA bonus account and those amounts are from the standard bonus, which you are guaranteed to keep once it has been paid, it looks as though retaining it is currently a good option. Greater than 24% return and a guarantee of no loss is very worthwhile for a with profits fund investment in a rising market. Pearl has increased the proportion of the with profits fund that is invested in stocks and shares by 5% each of the last two years and that should be good for you.

Worth reconsidering if the stock markets fall but at present it seems like a useful and quite safe way to have stock market exposure. Even if they do fall, it may be worth retaining for the subsequent rise, though your bonuses will be lower for a few years.

Given the terms and current yield it seems like a good option not to take an income from it but to leave the money invested, since stock markets gains at this level that you can't lose later are well worth retaining.

The key requirements for this suggestion are:

• that the product is the one it sounds like
• that you do get to keep the bonuses if the market drops
• that the daily rate and fund size given are accurate

dunstonh

It was originally an insurance ISA but now falls under stocks and shares. It can be transferred to a stocks and shares ISA at no cost (through the right people). The thread Jem links to gives more info.

It has low potential for future growth and whilst it wont be as bad as the general pearl with profits fund, it is something you dont want to stick with.

James, it is quite inflexible as a product. It doesnt allow an income. Its bonuses are low and equity content is limited. You wouldnt want to keep it.

jamesd

dunstonh, bonus at £1.49 a day on £2274.86, apparently with a no future loss guarantee?

dunstonh

its not 1.49 per day. Its closer to 1.49% pa.

The Pearl with profits fund is a 90:10 fund as well so they are creaming upto 10% of the return before they pay any bonuses. Not that Pearl make much due to their asset allocation.

jamesd

If it's 1.49% pa that would be a completely different picture! Move to something else is an easy decision at that level.

montycat_2

Hi folks ,

yes ,it is the one posted in the other thread .The lady on the phone mumbled "daily bonus 149 " or something like that .I will phone back and double check .

I also have a Portman 15 day notice ISA with the full £3000 in it -taken out last July .

If I hold onto this Pearl one until beginning of April ,Could I transfer it into there ?

I am awaiting a call back from the Portman with regards to this but ,if you could give me a rough answer ?thanks

jem16

montycat wrote:

Hi folks ,

yes ,it is the one posted in the other thread .The lady on the phone mumbled "daily bonus 149 " or something like that .I will phone back and double check .

I also have a Portman 15 day notice ISA with the full £3000 in it -taken out last July .

If I hold onto this Pearl one until beginning of April ,Could I transfer it into there ?

I am awaiting a call back from the Portman with regards to this but ,if you could give me a rough answer ?thanks

It seems to say on the Portman website that you cannot transfer into the 15 day notice ISA.

Can I transfer my ISA from another ISA provider?
You can transfer a Mini Cash ISA or TESSA Only ISA from another provider into the Easy Access ISA, Fixed Rate ISA's and First ISA (please note we will not accept transfers into the 15 Day Notice ISA and First ISA Monthly Saver). You will need to complete and sign an ISA transfer in authority form and ISA transfer in application form, available from your local branch, and send these to your current ISA provider who will then make the necessary arrangements.

There are other ISAs that will allow transfers but you will need to check the T&C. I have a Halifax Direct Saver ISA at 5.25% - this does allow transfers. The top paying NS&I unfortunately doesn't allow transfers either.