Basic ISA question

KeepOnSwimming

Hi all,

I'm sorry, I'm very new to this and although I've read through the guides I'm struggling to apply the knowledge gained to my personal circumstances. But I think it's hopefully a simple question...

I have one cash ISA with The AA, on interest 3.05% with the full £5340 allowance for 2011/2012 in it. It was opened in Jan 12 and they have confirmed interest earnt will be paid in Jan 13 and then the rate will drop.

I have a second cash ISA with Santander, on interest 3.3%, with the full £5640 allowance for 2012/2013 in it. It was opened in May 12, they have confirmed the interest earnt will be paid on 1st March 2013. The rate will drop in May 13 (it includes a 12 month bonus).

So for 2013/2014 I need the best rate on my old ISAs, the best rate for any new cash I can put in and instant access as its our only emergency pot.

My query is, am I right that the next step is in February/March 2013 to start searching for the best ISA rates that allow 'transfers in' of multiple previous year's ISAs? I have heard that these are limited to £10,000 some times so I assume I need to find one that has a bigger limit?
I am not asking anyone to recommend an account, I'm just asking what the product and terminology is that I'm looking for now that I have old ISAs to deal with as well as the new ISA allowance year?


Many thanks in advance for your explanations and my apologies if you feel frustrated that I havent understood it from the guides available already, I have tried

KeepOnSwimming

psychic_teabag

Does your Santander ISA allow transfers in ? If so, you could transfer the AA one now, to get a higher rate. Don't need to wait until the bonus ends. You can transfer an instant-access ISA as often as you like, any time you find a better rate. (Provided the bonus isn't payable only on the anniversary - some accounts do it this way but it's rare.)

February might be a little early to go looking for ISAs - March/April tend to be the best rates.

Do you need more than £11k instant-access for an emergency pot ? Could perhaps consider a notice ISA for some of it, if you're not ready to get fixed-term. (Right now, Coventry are offering 3.25% for a new-money-only notice ISA, which is a pretty good rate. Seems to be about the only decent notice ISA at the moment, though.) Even fixed-term ISAs tend to offer early access in an emergency (with loss of interest) though need to check T&C to be sure. I think

fiesta04

You are correct in your understanding of ISA's.

You already use the correct terminology.

Just make sure the new provider does the transfer of the "old" ISA.

Best rates are usually at end of March/mid April.

F4

innovate

KeepOnSwimming wrote: »

Hi all,
.....I have heard that these are limited to £10,000 some times so I assume I need to find one that has a bigger limit? /QUOTE]

I haven't come across such a limit - - they either allow transfers in (any amount) or they don't.

KeepOnSwimming

thankyou very much for your responses - keyboard broken (refund granted) so please forgive brief response. thanks will put advice into action