Confused about ISA's

Sebbie87

Hi, I am new to this posting thing so I hope I am not breaking any rules etc.

I have just had a letter from the Halifax advising me that my ISA rate will drop from 3% to 0.25% at the end of April. My questions is, if I shift my existing ISA to a better rate with the Halifax at the end of April, does this count as a new ISA or will I be able to still invest next years (2013/14) full ISA allowance at a different bank that doesn't accept transfers?

I look forward to some clarification on this. Thank you

Lokolo

You can transfer your ISA to a new one that allows transfers. This will not use any of the allowance. When you transfer you open the new ISA with 0 (nil) balance and fill in an ISA transfer form with the new ISA provider.

For new money you can choose to put the money anywhere you like, in an existing ISA or a new one altogether.