ISA Interest question

burdenja

Hi All,

ok so i only really started looking into savings and whatnot this year as i managed to land a new job that give me some spare monies.

I opened an ISA in October at 3.01% and it will pay the interest annually, im aiming to have it maxed out in the next couple of months.

My query is if i open a new isa in April and start putting say £500-£700 in a month (depending on spare money), would it be more beneficial to wait until my other isa pays up in oct next before transferring or would it be better if i find a good interest rate to transfer the cash immediately to the new isa so i will have more money in the same place. as i obviously wont be able to max out my isa straight away.

Thanks

evenasus

Unless you've opened a fixed rate/term ISA - you can transfer anytime - if you can find a better rate that is.

burdenja

thx mate, i know i can transfer i was just wondering if anyone had any guides as to the benefits, like if the interest rate i get on the new isa was better than the current one , would it be better to transfer all the money under one roof or leave the money alone to get the 2 rates separately etc ?

mr_fishbulb

burdenja wrote: »

thx mate, i know i can transfer i was just wondering if anyone had any guides as to the benefits, like if the interest rate i get on the new isa was better than the current one , would it be better to transfer all the money under one roof or leave the money alone to get the 2 rates separately etc ?

If the new one has a better rate, and accepts transfers in, then stick it all in that one

CLAPTON

in general, interest accumulates on a daily basis so it's usually best to move everything to the account that pays the highest interest rate

exception are
-if there is a penalty for withdrawing before a certain date
-or it the a/c is a bonus a/c that only pays out if your run the full term