ISA transfer - best account?

sweetilemon

After noticing an embarrassing oversight for such a frequent MSE'r, discovering my ISA interest has been sitting at 0.25% since November, i'm looking for the best account to transfer the balance to. I see martin recommends the M&S account at 2.75% but heard some bad reviews on here about M&S. Don't have a landline so would not use an account I needed to phone 0845 numbers. To reduce costs ideally would like an online access account and/or in branch.

I need it to be easy access with no withdrawel fees and obviously transfers allowed at no fee. I was with BoS but 1.5% seem low.

Gordon_the_Moron

M&S pay 2.75% until March, then it drops to 2.25% and as you say no branch/web access.

West Brom BS pays 2.52% (1% bonus until Dec 31 2013 so put the date in your diary and switch then!) this account has online access.

Coventry BS pays 3.1% with 60 days notice, the account does not accept previous year's transfers. You can however transfer in this year's allowance if you ring them.

Britannia pays 2.62% fixed for 2 years with 180 day loss of interest on withdrawals. Slightly higher rate than instant access but with the chance of rates going up before then not worth it in my opinion.

http://www.moneysavingexpert.com/savings/best-cash-isa

innovate

Best list of best ISAs is in post 1 of this thread: https://forums.moneysavingexpert.com/discussion/401374

There's an outside chance we might see slightly better rates during March/April/May so you might want to take a gamble and just go for an instant access one right now

sweetilemon

Thanks both, very helpful! Will go instant access anyway as may need the money so don't want to tie it away. I am toying with the idea of putting it into premium bonds but I have built up a few years ISA allowance so don't know if I would regret starting it from scatch again or if I don't win much!

empyrean

wrong thread, sorry.

innovate

sweetilemon wrote: »

I am toying with the idea of putting it into premium bonds

Have you read this article? http://www.moneysavingexpert.com/savings/premium-bonds

sweetilemon

innovate wrote: »

Have you read this article? http://www.moneysavingexpert.com/savings/premium-bonds

I hadn't, thanks. Will just stick to gambling the small sum I have in bonds at the moment!

Has anyone used the M&S ISA? Seems the best for what im looking for, just annoying I can't manage it online.

sweetilemon

Ok, so next question. I transfered the balance of the last ISA to BoS in Nov 2011. Interest credited in April 2012. Rate dropped (i assume) Nov 2012. So, I still have interest owed April '12 - now, set up to go to the ISA account. Can I have 2 ISA's open ( leaving £1 in the BoS account), leaving it open for interest to be credited in April 2013? Or do i need to transfer the full amount? If so, what happens? Don't want to lose my interest gained but don't want to just earn 0.25% until April. Its an instant access ISA. Thanks in advance!

innovate

sweetilemon wrote: »

Has anyone used the M&S ISA? Seems the best for what im looking for, just annoying I can't manage it online.

I haven't myself. Check the forums for people reporting problems contacting M&S CS, and making deposits.

Also, the interest rate on the M&S ISA will drop in March, if memory serves me right

innovate

sweetilemon wrote: »

Ok, so next question. I transfered the balance of the last ISA to BoS in Nov 2011. Interest credited in April 2012. Rate dropped (i assume) Nov 2012. So, I still have interest owed April '12 - now, set up to go to the ISA account. Can I have 2 ISA's open ( leaving £1 in the BoS account), leaving it open for interest to be credited in April 2013? Or do i need to transfer the full amount? If so, what happens? Don't want to lose my interest gained but don't want to just earn 0.25% until April. Its an instant access ISA. Thanks in advance!

When you request a transfer, BoS will pay your entire balance, incl any interest earned up to the date of transfer, to your new provider. Interest is calculated on a daily basis, so you will not lose out. Your BoS ISA will also automatically be closed since you request transfer of the whole lot.

Just make sure you ask the new provider to make the transfer, don't do it yourself. They all have transfer forms for us to fill in.
http://www.moneysavingexpert.com/savings/cash-isa-transfers

sweetilemon

Thanks for the advice. Will the interest be added to the ISA transfered even when the ISA limit has been reached? My account overview says i have -£300 allowance left...for months it said zero and i haven't added to it. Last time I overpaid my ISA they bounced it back into my current account.