Confused! ISA Transfer! Help Please!

Jaykay

I have an isa with hsbc current rate 2.1%

Im thinking of transfering to the higher rates today if possible. I know the max i can trasnfer is £5340 i have 9,500 in the hsbc account. They say once i transfer the remainder will go into a normal savings account.

Will I still be better of transfering? Whats the best thing to do? Sorry if i sound stupid but i just cant get my head round it all

Thanks

Lokolo

Who is they?

You seem to be confusing everything together.

When you transfer ISAs there is no limit. The only limit is the amount of new money you can deposit.

It may well be that the ISA you are looking at will only allow NEW money. What you currently have is OLD money. You will need to find an ISA that allows transfers in. You can transfer the WHOLE amount.

When you transfer you use an ISA transfer form, you do not transfer yourself.

Frogletina

Jaykay wrote: »

I have an isa with hsbc current rate 2.1%

Im thinking of transfering to the higher rates today if possible. I know the max i can trasnfer is £5340 i have 9,500 in the hsbc account. They say once i transfer the remainder will go into a normal savings account.

Will I still be better of transfering? Whats the best thing to do? Sorry if i sound stupid but i just cant get my head round it all

Thanks

You can transfer the maximum that your new isa will accept - if they won't accept it all can you not leave the balance where it is in your current isa? If not you can transfer it to a new isa somewhere else.

lisyloo

I know the max i can trasnfer is £5340 i have 9,500 in the hsbc account. They say once i transfer the remainder will go into a normal savings account.

This is wrong. You can xtransfer as much as you want, believe me I've transfered £35K before. The £5340 is the limit for subscriptions before 6th April 2012.

I think you have maybe got confused by the terminology.
You have a limit of £5340 for the tax year 6/4/2011 - 5/4/2011.
So if you put in NEW money then you only put £5340 into an ISA and the rest would have to go elsewhere.
However assuming your new account allows transfers in, then you can transfer the entire £9500.

Will I still be better of transfering?

On that rate, yes you should transfer to a better rate.

Sorry if i sound stupid but i just cant get my head round it all

Don't worry it's confusing.
But the allowances apply to how much you can put in. There is no limit on what you can transfer.

Jaykay

Thanks for the replies. Im thinking of opting for the Marks and Spencers clean rate ISA as im assuming this will stay at the 3% every year and I wont have to keep transfering? Unless of course theres a much higher rate that year!

Ive also noticed almost all the ISA's pay annual interest as my current one with HSBC is monthly does this matter?

lisyloo

as im assuming this will stay at the 3% every year and I wont have to keep transfering?

No-one can know in advance as they can change a variable rate whenever they like, but there isn't a bonus that drops off after 12 months, so I'd say it's a good choice.
Transferring means filling in a form that takes 5-10 minutes.
Unless you really are very time poor it's generally worth spending that time to shop around.
Even if it's £30 for 10 minutes, where else can you earn the equiavlent of £180 per hour?

Ive also noticed almost all the ISA's pay annual interest as my current one with HSBC is monthly does this matter?

Not unless you want to withdraw the interest monthly or like to see it.
Otherwsie it makes no odds.

eschaton

Remember access to M&S ISA after opening is by phone or post, no online access which is strange.