ISA advice-switch?

mustachio

I am new here. The site has enabled me to get more savvy with money. I have managed to save £4200 (half of that from this tax year) into an ISA with the ING 3.1% deal. The problem is that the interest now goes down to 1%.

Please advise what should I do now? I want the best interest rate so should I close the ISA down completely? If so where should I put the money? Is it possible to just place it straight into another ISA?

I save £350 each month without fail building towards a house deposit.

Please please advise for someone that was previously bad with money and now trying to improve with the help of Martin Lewis and this forum.

xylophone

You can contact a new provider with a better rate and ask for a transfer form which you complete and return to that new provider who will then arrange the transfer. Do not close the account yourself.
http://www.moneysavingexpert.com/savings/cash-isa-transfers

http://www.thisismoney.co.uk/money/saving/article-1583864/Best-savings-rates-Isas-Cash-Isa-accounts-fixed-rate-Isas.html

McKneff

Always get the new provider to sort the new ISA out for you

mustachio

I see we have the option to switch cash from ISA's. Am I write to assume that the deal is only for THIS tax year. For example if I have £2200 for the last tax year-I would not recieve the 2.75% rate for that?

xylophone

Presumably you are going to switch the whole amount into the new isa - you will receive the rate specified for the term specified on the whole amount. Some accounts have a bonus that drops off after a year - some don't- see link. For example, the Marks and Spencer ISA does not have a bonus - you will get the 2.75% until they decide otherwise.