Some advice please? :)

Archergirl

As well as all this saving I hope you are enjoying your money. Have nice holidays etc, you never know what tomorrow may bring!!

psychic_teabag

Tidd83 wrote: »

Hi PT,

It definitely is an ISA, I think when I say bonus interest I am just referring to the interest paid for the first year. I know after one year of it paying 3.x% it will reduce down to 0.1% or something ridiculous so I will need to get it out when it finishes. With that in mind and from what you just told me, if I was to open a new ISA in April with my maximum allowance that allows transfers in would I be allowed to transfer the original one in to it come July or does it generally have to be done at the time of opening?

Note that cash ISAs come in both instant-access and fixed-term flavours. I think a fixed-term ISA could still have the behaviour of paying 3.x% for 1 year then reverting down to something insulting - I think fixed-term ISAs basically turn into instant-access ISAs on maturity, but sometimes they roll over into another fixed term, so you need to check. (That said, fixed-term ISAs seem to allow early access with possible loss of interest. So it's probably little different from having it turn into an instant-access ISA paying 0% vs rolling over into a fixed-term that you lose the interest on when you transfer out.) Anyway, I'm digressing a bit here.

If you open an instant-access ISA in April, I would expect it to allow transfers in at any time, but you'd be best to check the specific account T&C to check (or ask again nearer the time with the specific account details). The money you transfer in July would of course only get the bonus rate for 9 months, until you transfer it all again next April. But the best ISA rates seem to be around March/April anyway, when banks are trying to grab ISA business.

Have you seen Martin's ISA guides at
http://www.moneysavingexpert.com/savings/best-cash-isa
http://www.moneysavingexpert.com/savings/cash-isa-transfers
http://www.moneysavingexpert.com/savings/ISA-guide-savings-without-tax

Tidd83

JRawle - That is exactly the type of mortgage I have and funnily enough my yearly statement came through this morning which clarified the whole borrowing against the overpayment at the 2.5% rate which was good news. As I said I don't ever intend to use it but nice to know if I do need it then the interest rate wont be sky high like some loans of today. It also mentioned the redemption fee which again confirmed my beliefs that I can pay this back if the term is less than 10 years and they will waiver the cost which is nice to know, means I have no rush to do anything with it at the moment.

In regards to the ISA, from what I can remember I believe it was a Flexible ISA I opened with Santander, I just knew it had the better rate for the year and I can transfer in and out of it online so that seems to be the most likely. Maybe I am best waiting for it to mature and missing out on a couple of months interest on any new investment between April and July since the ISA accounts I can open where I can freely transfer to at any time only seem to pay around 2% (that was just a quick glance I just made).

ArcherGirl - You are right, I have just treated myself to a new TV I wanted over 4 years ago! Holidays I would love, to be honest I am itching to go but all my friends are tied in relationships/married or have kids and it is hard enough to get them to go for a drink let alone go away. I'm single and looking however until something comes along I am sort of waiting, I have debated going alone and this is the big umms and arrghs of my life at the minute, should I go or shouldn't I.. keep talking myself out of it to be honest!

Tidd83

Thanks PT, will have a read through those right now.. Virgin Money is new on the market right? Has anybody had any dealings with them yet?

jrawle

Tidd83 wrote: »

In regards to the ISA, from what I can remember I believe it was a Flexible ISA I opened with Santander, I just knew it had the better rate for the year and I can transfer in and out of it online so that seems to be the most likely. Maybe I am best waiting for it to mature and missing out on a couple of months interest on any new investment between April and July since the ISA accounts I can open where I can freely transfer to at any time only seem to pay around 2% (that was just a quick glance I just made).

If it is a Santander Flexible ISA, it says interest is calculated daily. There is no mention of having to keep the account for a year to receive the bonus rate:
http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&cid=1237855061169&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateW2

In this case, you will be better off closing it and opening a decent fixed-rate account with the balance plus your 2012-13 ISA subscription.

Tidd83

JRawle, that sounds like a plan... I think I will go in to the branch nearer April and confirm what it is I have and the exact date it finishes. As you say if I can transfer it to another fixed rate account it maybe worth doing it all in one go. Thanks for your help.. think I will keep an eye on the ILSC and just continue to save as I am doing at the moment.

Archergirl

Definatly go!!!
Perhaps look at an adventure type holiday where you would meet up with other people, or volunteer somewhere exotic, but do it............Sorry, off topic x

Tidd83

That was one of the many things I considered ArcherGirl, suppose I should listen to other peoples advice and stop talking myself out of it, got nothing to lose right!? You got your own personal blog/goal at the min?

Archergirl

No blogs or goals really, worked at BAE for 39 yrs took redundancy, went on a 6 month trip with hubby and 2 friends camping in OZ, Perth to Darwin and back in a 4WD and 2 tents, amazing experiance, also 1 month by ourselves in USA 2 weeks in NZ. Cruise booked for feb (not Costa!!!) then look for a part time job.............
I worked in a hospital for 18 months and you really do see just what can happen, and you can't take it with you, just hard to know how long it has to last though!!!

psychic_teabag

Tidd83 wrote: »

Maybe I am best waiting for it to mature and missing out on a couple of months interest on any new investment between April and July since the ISA accounts I can open where I can freely transfer to at any time only seem to pay around 2% (that was just a quick glance I just made).

There's a few on here offering more than 3% :
http://www.!!!!!!.uk/free-services/best-buy-savings-accounts/instant-access-cash-isa-that-accepts-a-transfer/

The best ISA rates may be around March (to attract last-minute rush) and April (to entice early birds), so it's definitely worth checking out the available rates around then. If you wait until July you might miss out (but OTOH might get a better rate - no-one knows for sure).

Oh - one other trick : ISA transfers can take some time to go through. Halifax and others (Nationwide IIRC) have in the past offered to pay interest as soon as the transfer request is received, so you get double-interest while the transfer takes place. In such a case initiating the transfer a little before the end of the bonus rate on the existing one would give a little extra interest.