Cash ISAs: The Best Currently Available List

Chippy

I opened a First Direct ISA in July with £200 and transferred in my previous ISA of £33710. It has since accrued interest of £4.82.

Given the drop in the rate I now want to transfer to the Leeds 2yr fixed ISA but I dont currently have the full £15240 of this years allowance and after September I wont be able to add to the Leeds account so should I/could I transfer £33710 to Leeds and keep the FD ISA for this years money? ie the £200 plus £4.82 interest plus any future deposits.

Thanks

badger09

Chippy wrote: »

I opened a First Direct ISA in July with £200 and transferred in my previous ISA of £33710. It has since accrued interest of £4.82.

Given the drop in the rate I now want to transfer to the Leeds 2yr fixed ISA but I dont currently have the full £15240 of this years allowance and after September I wont be able to add to the Leeds account so should I/could I transfer £33710 to Leeds and keep the FD ISA for this years money? ie the £200 plus £4.82 interest plus any future deposits.

Thanks

You could transfer just the previous years' deposits of £33710.

You might also consider saving outside an ISA in one of the many current accounts paying up to 5%. If you're a basic rate taxpayer you can earn £1k interest before having to pay tax (£500 for a HR taxpayer)

If you must use your ISA allowance in a cash ISA, you could pay up to £15040 into your FD ISA at the end of March to secure it.

lisyloo

so should I/could I transfer £33710 to Leeds and keep the FD ISA for this years money? ie the £200 plus £4.82 interest plus any future deposits.

You probably know this but you won't be able to touch the leeds money for 2 years without 150 days loss of interest.
If you don't need the money then I'd transfer all but £1 which is what I am doing. The forms are pretty straightforward.

badger09

lisyloo wrote: »

You probably know this but you won't be able to touch the leeds money for 2 years without 150 days loss of interest.
If you don't need the money then I'd transfer all but £1 which is what I am doing. The forms are pretty straightforward.

Why all but £1?

OP would be leaving current year's subscription of £200 + interest £4.82 in FD ISA.

jimbow25

capehorn wrote: »

Down to 0.9% from 18th October

Only opened this last week argh!
I possibly expected a drop (not that every rate fall in 2008 got an exact matching fall in interest rate...)... but 0.4% seems like a lot as a proportion of the overall rate, it's a 30% reduction.

I don't have or need a massive stack of cash savings, and saving is earning so little...definitely time to look at overpaying my mortgage instead of paying into an ISA.

badger09

jimbow25 wrote: »

Only opened this last week argh!
I possibly expected a drop (not that every rate fall in 2008 got an exact matching fall in interest rate...)... but 0.4% seems like a lot as a proportion of the overall rate, it's a 30% reduction.

I don't have or need a massive stack of cash savings, and saving is earning so little...definitely time to look at overpaying my mortgage instead of paying into an ISA.

Are you making the most of high interest current accounts and/or regular savers?

lisyloo

badger09 wrote: »

Why all but £1?

OP would be leaving current year's subscription of £200 + interest £4.82 in FD ISA.

I believe £1 is required to keep the account open.
£204.82 gives you little liquidity and doesn't maximise the interest.
I guess it's not much either way but I'm going to maximise the advantage.

colsten

lisyloo wrote: »

I believe £1 is required to keep the account open.

What would be the benefit of keeping the account open?

masonic

lisyloo wrote: »

I believe £1 is required to keep the account open.
£204.82 gives you little liquidity and doesn't maximise the interest.
I guess it's not much either way but I'm going to maximise the advantage.

This won't work. Current year subscriptions must be transferred in full. Therefore, the £1 left behind would be previous year subscriptions. The current year subscriptions would be transferred to the Leeds fix and Chippy would be unable to subscribe any more money to the FD ISA (or the Leeds one after September). The only way to take out the fix AND continue to add subscriptions to a cash ISA after September is to follow Badger's suggestion.

lisyloo

Ok, thanks for the correction guys.
My situation is different as I've completed this years subscription.