Stick with Super Flexible ISA?

danjshelton

Hi All,

After a bit of advice on what to do with my current ISA when the bonus period expires shortly. I currently have a Santander Super Flexible ISA (due to an investment product I took out (bad decision but thats for another time)), I have just had a letter to say the bonus period is due to expire on 1st Jan 2012 (I thought it was more like 12th Dec 2011).

They have said that the 5.5% rate will now drop to 2.5% (if over 8.5K which my account has), I must admit I was thinking it would drop to less than 1% so I am suprised by this. Therefore I was going to ditch this for something else, but I am now thinking about whether to keep this.

I have paid in my full amount for 2011/2012 so can't pay in any more until April 2012.

Am I going to be better to hunt down a new ISA or stick with the 2.5% that they are going to offer me?

Cheers

Dan

Mikeyorks

If you're going to put funds into a cash ISA during 12-13 ....... then determine the answer in conjunction with that?

If you have eg £10k at 2.5% ....... then you're going to lose circa £75pa against the best one year rate. If you decide to add your £5640 allowance in April - you increase the level of loss?

So if you're going to go elsewhere from April - then you might as well seek a joint new account for all the cash? Santander may have a beneficial internal transfer ...... if you don't want the hassle of an external one?

ses6jwg

Internally you can opt for 3% on a 1 year fix or 3.5% on a 2 year fixed assuming your balance is over £14k.

If it is below 14k then the rates are 2.75 and 3.25% respectively.

danjshelton

Hi,

Thanks for the swift reply (again!), I have enough in a Santander eSaver to transfer into an ISA to full use next year's Tax Free allowance and will probably transfer the full amount as soon as I can in April. So I will be adding to the existing amount in the account.

I'm not really totally up on ISA's, but have a bit of a clue and I noticed that last year (although I wasn't looking in April as I had the Super Flexible ISA) that the best rates (certailn with Santander) we're on accounts which didn't allow transfer in's, so I wasn't sure if it was worth having two accounts the first with 12/13's allowance in with the best rate and then the current amount (as I wouldn't be able to transfer in to the best rate account) in either the existing account (2.5%) or another account that accept's transfer in's.

I currently have a bit over 18K in the account, and I am hoping that when the interest get's added to the account (either when I transfer the money elsewhere or I think it is March) that it will be another £400 - £600 (It has already paid out interested once after a few months and had extra money added into it last April).

Ideally I would like to stick with Santander to make it all easier as I have my current accounts, credit card and other saving's with them, but if I will lose out on interest I am happy to switch providers.

Cheers

Dan

ses6jwg

The Flexible ISA is still around and paying 2.81% on just this years allowance.

Santander's ISA range is competitive, but not market leading.

danjshelton

I've already used this year's allowance, as I put £5340 into my super flexible ISA in early April. So I don't think that the Flexible ISA will be of use to me as I can't transfer in any existing ISA amount.

Think I might stick with the 2.5% they are offering me once the "bonus" period ends on 1st Jan and then maybe get a different Santander account if there is something offering a better rate which doesn't accept transfer in's (e.g. next year's Flexible ISA).