Egg Cash ISA - 6.05% (merged)

redfuturepgw72

Is there anything stopping you from withdrawing all the money from your ISA into your current account and they opening the new Egg ISA with the money once it has gone in. It just seems the most obvious solution to the problem of ISA transfers. Especially if your current ISA has a poor rate of interest.

Dave_Q

redfuturepgw72 wrote: »

Is there anything stopping you from withdrawing all the money from your ISA into your current account and they opening the new Egg ISA with the money once it has gone in. It just seems the most obvious solution to the problem of ISA transfers. Especially if your current ISA has a poor rate of interest.

When we talk about transfers we are usually referring to ISA contributions from previous years.

In any one tax year the £3000 limit applies so your plan does not work

redfuturepgw72

No the amout is £800 so rather than leaving that in the old ISA paying 4% surely its better to withdraw it and then start the new 6% ISA with the £800, allowing you to save a further £2200 tax free for the year? Am I missing something here?

iamsam

redfuturepgw72 wrote: »

No the amout is £800 so rather than leaving that in the old ISA paying 4% surely its better to withdraw it and then start the new 6% ISA with the £800, allowing you to save a further £2200 tax free for the year? Am I missing something here?

If you're certain that you/they won't be able to afford to contribute any more to the ISA before April 08, then it's a viable suggestion.

If, however, it is likely (or even possible) that you can make the full £3k contribution, in addition to the £800, then it would be better to do that and move the £800 to an ISA that does allow transfers in.

For example, open an Egg/NS&I ISA with the full £3k you're allowed this year. Then open a YBS e-ISA (at 5.65%) with a transfer in only (I did this last year, even though I had already used up my allowance) and transfer the £800 into it.

Note, these are all done by ISA transfers. If you follow my suggestions, you should at no point withdraw any money to a current account. This MSE article explains the ISA transfer process.

iamsam

Although it's too late for me §, this BBC news article suggests another interest rate hike is imminent. This means that in a couple of weeks, assuming a 0.25% rise in interest rates, the NS&I ISA will be at least 6.05% - matching the Egg rate, with a better guarantee should the interest rate be increased further.

§ I guess I probably could make use of the 14-day cooling off period, and start again with NS&I.

Riviera_Kid

iamsam wrote: »

Although it's too late for me §, this BBC news article suggests another interest rate hike is imminent. This means that in a couple of weeks, assuming a 0.25% rise in interest rates, the NS&I ISA will be at least 6.05% - matching the Egg rate, with a better guarantee should the interest rate be increased further.

§ I guess I probably could make use of the 14-day cooling off period, and start again with NS&I.

In my opinion it's not worth it. Even with an interest rate rise or two NS&I would still be below Barclays and I think someone above calculated the difference between Barclays 6.5% and Egg 6.05% as being £7 over the course of a year.

It's up to you but for less than £7 I wouldn't bother switching and would stick with Egg

gelato_cat

Hi all

I opened this account on Sunday and the £3k has left my current account today I'm glad to have this year's allowance sorted, I was getting fed up of my money earning a cr*p rate while Barclays were sorting themselves out.

Suze

OldNelly

ISA_Man wrote: »

I don't have any previous accounts with Egg and frustratingly I got a message after going through the application process telling me that they can't verify my identity which is pretty frustrating. So now it says I have to apply for an Egg Savings Account and then reapply for the ISA. I don't understand how it's going to be any different since I gave the full amount of personal information when applying for the ISA.

Has this happened to anybody else? I'll try applying for the savings account (which I'll probably never use...) again later and hopefully I can get the ISA setup then.

Exactly the same happened to me, I sent a bank statement as requested and the account was set up in a couple of days.

This evening I applied for the ISA, it was all very simple and only took a few minutes.

Last night I applied for an Egg Money account to replace my Morgan Stanley card, and I was accepted today.

As a new customer at Egg, I am gaining confidence in them at every step. It couldnt have been more simple really. I even have my proof of ID bank statement back already, I only sent it at the end of last week.

I am now waiting for my Egg Money card to arrive, and for Egg money to show up on "Your Money"

Does anyone know how to cancel a Morgan Stanley card? The egg card is only my second Credit Card so I have no experience of cancelling cards.

Thanks

gelato_cat

Yup - just ring them and ask them to cancel it. If there are any amounts owing, they'll ask you to pay them before they close the account. A few days later you'll receive a letter from them confirming that the account has been closed.

Suze

OldNelly wrote:

Does anyone know how to cancel a Morgan Stanley card? The egg card is only my second Credit Card so I have no experience of cancelling cards.

ISA_Man

OldNelly wrote: »

Exactly the same happened to me, I sent a bank statement as requested and the account was set up in a couple of days.

This evening I applied for the ISA, it was all very simple and only took a few minutes.

Last night I applied for an Egg Money account to replace my Morgan Stanley card, and I was accepted today.

As a new customer at Egg, I am gaining confidence in them at every step. It couldnt have been more simple really. I even have my proof of ID bank statement back already, I only sent it at the end of last week.

I did the same. I really am impressed at Egg's response. I sent a statement from last years ISA to them on Friday and then I received an e-mail at midday on Monday telling me that the account (the saver) was up and running. I was able to reapply for the ISA and it was ready to go in a matter of minutes. I was able to pay money into the account straight away (I'm loving the direct debit way of funding the account) and I like the way it showed up immediately as being available despite the money not leaving my LloydsTSB current account until the next day.

Then on the Tuesday my statement arrived back! I've never had such speedy service. Top marks for Egg.

I might even use the saver since it's so convenient and the 5.25% interest rate isn't bad .