being sensible or missing something?

LottieLou

I need a little advice/reassurance re: my isa accounts, if I'm missing something.

My accounts got alittle muddled by santander last year ( £4000 was put into an old isa and said they couldn't rectify their error and put it into the isa I had asked.) Anyway, I am now left with:

* ISA 1 (fixed term ending 01/08/12) approx 10k
* ISA 2 £1370.

My thoughts were I have 3 options
1. To open a new isa now, no transfers allowed.
2. Open an isa allowing transfers in, transferring the 1370 now and filling it up.
3. Wait till august transfer both isa accounts together and fill it then.

I was going to do number 3, but now i can decide if that's the right thing to do? I have my allowance for this tax year ready to be put in, it just feels so wrong to not be putting it in one now!

Lokolo

Why not do 2. Then when the other ISA matures, transfer that in as well?

You don't need to get a fixed term, just get an instant access for 6 months, then fix it after if you really want to.

DragonQ

If you want maximum return, you're probably gonna need to open two new ISAs - one for new money ("New ISA 1") and one for previous years' money ("New ISA 2").

Put £5640 into "New ISA 1" straight away, transfer your current "ISA 2" to "New ISA 2" straight away (assuming it's a better rate), then, in August, transfer "ISA 1" into "New ISA 2" as well.

Then, if you want another fixed rate ISA at some point in the future, open one (let's call it "New ISA 3") and transfer "New ISA 2" to this "New ISA 3".

McKneff

[QUOTE=DragonQ;52533441]If you want maximum return, you're probably gonna need to open two new ISAs - one for new money ("New ISA 1") and one for previous years' money ("New ISA 2").

Put £5640 into "New ISA 1" straight away, transfer your current "ISA 2" to "New ISA 2" straight away (assuming it's a better rate), then, in August, transfer "ISA 1" into "New ISA 2" as well.

Then, if you want another fixed rate ISA at some point in the future, open one (let's call it "New ISA 3") and transfer "New ISA 2" to this "New ISA 3".[/QUOTE]

That makes no sense at all, why would you need 2 new ISAs.

Open a new one, fill it up and then get the new company to transfer your old one into it. Full stop. Just as Lokola says.

No point in making work for yourself.

Hooloovoo

McKneff wrote: »

That makes no sense at all, why would you need 2 new ISAs.

Because the best new ISAs don't always allow transfers in.

For example, the Nationwide Flexclusive ISA beats many fixed rate deals right now, and with only one 0.25% base rate increase it will beat even the best 5-year fixes right now.

But you can't transfer in. So the best you can do is to open it for your new money this year, and then find the second best that does allow transfers for previous money. Hence the need to open two accounts.

LottieLou

I didn't realise i could do that (transfer an old isa in after i had already transferred one and contributed) for some reason I didn't think I could! That makes things much simpler.

If i met the criteria for the flexclusive nationwide isa, I would do it. I hold a current account with them but its not my main account and haven't funded the required amount the past 3 months so i don't currently qualify.