Moving to Barclays new Cash ISA

ffc

Hi I currently have an Easy ISA with Abbey that I believe pays about 5.3% and Im interested in moving to the new Barclays account. I see you cant switch accounts but as I currently have less than £3000 in my Abbey account can I just withdraw the amount cancel the account then open a new Barclays account?

I have currently used my £3000 for the year so will I have to wait to open the new account. Also will the Abbey account need to be closed before I can open the new Barclays one.

Thanks for your help!!

seagles_2

You can open a Barclays ISA now for next year. However if you withdraw the money from Abbey then you lose the ISA status of this amount. Best thing is to open a Barclays for "new" money and find someone with a better rate to transfer to. For on-line ISA the best seems to be YBS at 5.65%.
I just opened an account online with them and it only took a couple of minutes ot complete (mind you I do have a savings account with them).
Also you need ot check with Abbey to see if they hit you with nay penalties for transferring out as it still may be worthhile staying with them if there are penalties.

Remember the Barclays 6.5% rate is in fact 5.5% with a years 1% tacked on so on that basis next year you may want to move again.

Raptor.

ffc

Thanks I have already received my interest for the year so im guessing if I transfer out I wont loose anything?

I don't think there are penalties as I have already withdrawn cash from this ISA without any. Are there penalties with the Barclays account?