Abbey launch new 5.75% mini cash ISA

Kazza242

empfun wrote: »

This Abbey mini cash ISA sounds good.

I already have an existing postal ISA with Abbey with a £10K balance. If I opened this new cash ISA in 07/08 financial year. Can I transfer my full balance and add new £3K on top? Will the whole balance of £13K be earning 5.75%? Thanks a lot!

The Direct isa accepts transfers so I think Abbey would transfer your existing postal isa savings into the Direct isa if you requested them to. You could then add the £3K for the 2007/08 tax year. So yes, you would be earning 5.75% on the whole lot. Don't forget that the Direct isa includes a 0.50% variable bonus until May 2008, so it may be worth transferring out then.

MiserlyMartin

I had one of their Postal ISA's last year, and I wanted some money, not all - transferred to Alliance & Leicester. They ignored my instructions on the transfer form and transferred all of the money and closed the account!

When I phoned to complain they said someone would get back to me but nobody ever did.

Patr100

Can someone clarify this. I currently have 6K plus interest in a A& L mini cash ISA - ( used up my 2006-7 allowance obviously ) if I wanted to transfer the balance to this New ISA do I need to open it and also transfer the old ISA balance before the new tax year in order to later simply add another alllowed £3K after April 6th 2007 or can the transfer take place after 6th April 2007?

Kazza242

Patr100 wrote: »

Can someone clarify this. I currently have 6K plus interest in a A& L mini cash ISA - ( used up my 2006-7 allowance obviously ) if I wanted to transfer the balance to this New ISA do I need to open it and also transfer the old ISA balance before the new tax year in order to later simply add another alllowed £3K after April 6th 2007 or can the transfer take place after 6th April 2007?

You could initiate your isa transfer now and and then add another £3k from April 6th 2006 or you could wait until April 6th open the Abbey isa and then transfer in your A&L isa.

I would probably choose the first option, as there are nearly four weeks to go before the new tax year starts. If A&L and Abbey handle your transfer efficiently it will hopefully have gone through before the new tax year begins. You'll qualify for 5.75% interest once your transfer and new isa balance are combined.

masonic

Kazza242 wrote: »

I would probably choose the first option, as there are nearly four weeks to go before the new tax year starts. If A&L and Abbey handle your transfer efficiently it will hopefully have gone through before the new tax year begins.

I seem to recall it taking about 6 weeks to open my old postal ISA from Abbey, so let's hope they've learned their lesson this time, eh?

Kazza242

masonic wrote: »

I seem to recall it taking about 6 weeks to open my old postal ISA from Abbey, so let's hope they've learned their lesson this time, eh?

Abbey's customer service wasn't the best back then was it. I remember the many threads on MSE about it. I think they seriously underestimated the demand for their then 5.35% market leading isa which they launched 5 days before the end of the tax year!

Although, there is always the possibility of a longer than normal delay when transferring an isa, as there are two parties involved. However, if there is a significant difference in the interest rate between an existing isa and the isa you wish to transfer to then I think transferring can be worth it.

Patr100

Thanks for your comments. If I have done my sums right the approx difference between having 9k in my A&L Direct ISA issue 2 isa end of next year 3 at 5% (£450) and having the full 9k in this new Abbey ISA at 5.75% (£517.50) is around £67 - unless I have missed something. There may be a temp bonus on the A & L though it isn't advertised on the site at present and I haven't checked my papers etc.

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