A&L Issue 2 ISA - question re switching

Sapphire

I wondered whether anyone could advise me regarding switching from this ISA. The interest rate is currently 5%, and I was thinking of switching to the Kent Alliance ISA, most recently 5.71%.

Do you think it is worth holding out for a few days before switching to see if KA will raise their interest rates, or if any other providers that allow transfers in will provide a higher rate of interest?

Any help will be greatly appreciated.

:j

KTF

Abbey will be raising their ISA to 5.75% for under 9K and 6% for over 9K in the next couple of weeks.

Kazza242

I definitely think it is worth waiting until the majority of ISA providers have announced whether they will be increasing their rates and by how much. Most new rates usually come into effect from June 1st, so there is only just over two weeks to wait from now.

As you seem to be opting for a variable rate ISA I think it would be a mistake to initiate a transfer to a new provider now. It's best to hang on until June 1st IMO.

Kazza242

KTF wrote: »

Abbey will be raising their ISA to 5.75% for under 9K and 6% for over 9K in the next couple of weeks.

Yes, but don't forget that the Abbey Direct ISA rate includes a 0.50% variable bonus which expires on 01.05.2008. Anyone opening this ISA must be prepared to definitely switch to another ISA/provider by next May.

Sapphire

Kazza242 wrote: »

Yes, but don't forget that the Abbey Direct ISA rate includes a 0.50% variable bonus which expires on 01.05.2008. Anyone opening this ISA must be prepared to definitely switch to another ISA/provider by next May.

Many thanks for all the helpful replies. Do you know if Abbey accept transfers in? (I know some providers don't.)

I will wait until the beginning of June before making a decision, I think.;)

Kazza242

Sapphire wrote: »

Many thanks for all the helpful replies. Do you know if Abbey accept transfers in? (I know some providers don't.)

Yes, Abbey do accept transfers in.

Check out the Mini Cash ISAs: The Best ISAs currently available list thread for more ISA options.

Also check out Moneyfacts, here.

Sapphire wrote:

I will wait until the beginning of June before making a decision, I think.;)

Very wise IMO. Waiting until June 1st will make it easier to compare ISA rates, as most increases will have been passed on and announced by then.