Santander ISA's launch on 8th March

RoxRoxBling

Kips247 wrote: »

Also if its fixed till May 2015, does it mean the £5760 ISA allocation for April 2014 -2015 cant be added in? So gets wasted or you have to create a new one?

You can't add money after may 2013.
You could open an additional isa in 2014-15

Kips247

Ok cheers, so in theory if you've religiously put the full amount in every year since it began, its better to just stick with the best 1 yr ISA deal because the overall pot gets larger than get a fixed rate for 2 yrs?

beecher2

heloid wrote: »

Just a word of warning, I was told by an adviser when opening my Direct ISA that I had to fund it within 14 days of opening.
I asked for clarification and they said £2500 needs to be in the account within 14 days whether it be money paid in 13/14 or transferred in from last years 12/13 and before.
Given my current ISA matures on the 31st of May I stand to lose a bout £10 I think if I transfer now, not exactly terrible though.

Has anyone else confirmed this? I opened the account to get the rate but I'll call back a few times to make 100% sure before I make the transfer. I guess I'll also see if the rate sticks around and then close/reopen if necc.

I opened my account on 12th March and sent my transfer papers in yesterday as I delayed until online banking was set up - haven't received any documentation stating I only had 14 days to transfer money in.Additionally, the transfer form states that it will take up to 15 days for a transfer to take place so it isn't likely that they'd say funds from a transfer has to be in the account in that timeframe. Will update if I hear anything else.

RoxRoxBling

KIPS247
I Don't quite understand the question.

But if you open the 2.8 fixed account and rates drop you've won
If rates increase you've lost.
(Maybe I'll take my own advice)

Like 2 years ago i opened an fixed isa with rate of 3.75%
Guess I won there cause no isa rates like that around now.

Kips247

I think its because im a hoarder and want it all in one ISA even if its a lower rate as the return would be greater once the rates hopefully recover in 4-5 yrs.

RoxRoxBling

Kips247 wrote: »

I think its because im a hoarder and want it all in one ISA even if its a lower rate as the return would be greater once the rates hopefully recover in 4-5 yrs.

Not quite sure i understand what you mean by return being greater in a lower rate account

Scarpacci

Kips247 wrote: »

I think its because im a hoarder and want it all in one ISA even if its a lower rate as the return would be greater once the rates hopefully recover in 4-5 yrs.

Rates won't necessarily be higher for having all your money in one ISA. Some ISAs do have tiered interest, but these aren't necessarily the best paying ISAs anyway. Otherwise, 2.5% of £5k in an ISA and 2.5% of £5k in another is the same as 2.5% of £10k in one.

If your logic is that if there's one ISA that pays the most, then it's best to have all your money there than split it in other ISAs that pay a bit less, well that is true to an extent. But it doesn't always work out like that. Different fixed-rate durations may mean you were best putting £x in there for three years, so come next year you need to open a new ISA to add that year's money. Different plans may also mean somebody is comfortable tying up one lot of money for a while but not another pot. So many people do end up with a few different ISA accounts and continue moving them about, rather than merging them all together.

Jevvers

Scarpacci wrote: »

Different plans may also mean somebody is comfortable tying up one lot of money for a while but not another pot. So many people do end up with a few different ISA accounts and continue moving them about, rather than merging them all together.

Yes, Scarpacci, this is what I am currently mulling. I have transferred my 2012/13 ISA to the Santander 123 Major at 3% fixed. I could put my 2013/14 in there too but I am aware that if I DID need my cash in those two years, I would have to withdraw the whole amount as there is no partial withdrawal. I may go for the 2.5% for 2013/14 just to have the flexibility.

GreenBitterfly

It's the locking away bit that puts me off transferring into the 2 year fixed rate. Whilst I've currently got an easy access ISA which I haven't touched in two or more years, I'm well aware that I may need the money in the near future, and as I'm not likely to have the full ISA amount any time soon, despite the slightly better interest rate, it seems a bit daft for me to lock the money away.

innovate

You could perhaps transfer some into a fixed term ISA, and the rest into an instant access ISA one (or keep it where it is)? It's perfectly legal to split your existing ISA that way, with one exception - - the current year''s fund must be transferred in full. But that not a huge problem, either this time of year - just wait a couple of days and then you can split your ISA money up to and including 2012-13 any which way you like.