Cheshire BS ISA 3.5% - can I add to it for this tax year?

Turtle

Hello

I have the full subs from last tax yr paid into the Cheshire BS ISA. The 3.5% offer seems to have been reinstated now and I'm wondering can I pay this full yr subs into the same account and get the 3.5% or would I have to apply for and fund another account with them? If it's a different account I assume in total it will be the same amount of interest overall anyway?

Thanks
Turtle.

Turtle

Just noticed that the new account has a bonus rate until end of October, whereas the account I have now is bonus until end of September. So that might answer my question.

david78

You can just add the new money to your existing ISA (bonus period ends in September 2013). You will get 3.5% on all the money.

or

You can apply for a second cash ISA at the same rate and put your new money in there (Bonus period ends October 2013). You still get 3.5% but split over the two accounts.

The first option is easiest. The second option means you will have two accounts, one will have an extra month's bonus. Not much advantage really and may not be worth the pain of applying for the new account.

Turtle

Thanks David, I calculate it's £11.59 extra interest by splitting it over 2 accounts and getting the extra month bonus (£5460 x 2.5% bonus / 365 x 31 days). The account application was very straightforward indeed for the last one, I was very impressed. Thus, I think I will bite the bullet and do a separate application.

Thanks for your thoughts.

psychic_teabag

Could you go further and transfer the old account into the new account, so you get the extra month on all the money ?

Note that it's Oct 2013 : there might be a case for transferring the whole lot in April 2013, since there will probably be other good accounts around then. Waiting until Sept/Oct might mean that there are no good accounts to receive the money.

Though I guess if you open a new account in April 2013 that accepts transfers, you'd be able to transfer Cheshire money to there in Sept/Oct. But then again by doing that you have to settle for the lower rates available to accounts that accept transfers.

If rates are generally lower next April, one trick might be to do a partial transfer (£10 or so) to reserve an account at best available rate, then transfer the rest Sept/Oct.

So basically, re-evaluate the position in 12 months time, rather than waiting 18 months.