Is it good to leave old ISA's alone or transfer them to somewhere else ?

Sarinee

I was puzzled when watching the MMT's programme on ISA's, why it was suggested it would be better to leave OLD ISA's where they were.

Can anyone tell me why please ?

I would have thought it would have been better to put them somewhere with a higher interest rate ?.

There must be a reason ?

phona

Perhaps they meant it is best to leave it in the form of an ISA as opposed to withdrawing the balance into a current account or similar.

Generally old ISAs get a tiny interest rate, in which case it's best to transfer. I assume you have an old ISA. Check your rate and if you can find a better one that accepts transfers in then go for it. Make sure you follow the transfer procedure - you'll need to send a form to your new provider.
If there's a disadvantage to transferring in this way then I don't know about it!

innovate

Sarinee wrote: »

I was puzzled when watching the MMT's programme on ISA's, why it was suggested it would be better to leave OLD ISA's where they were.

I don't know what MMT is but if someone is said to have suggested to leave old cash ISA "where they are", they either haven't got a clue, or they have been badly misunderstood. My money is on the latter.

Not all "old" ISAs can be transferred without penalty, but those that can be without penalty should be transferred in literally all cases.

gkerr4

it depends on the rate - if it has a good rate then leave them alone - the push to move them is to keep up with the good rates.

i've left mine alone this year (save for topping it up) as the virgin one i have is still paying 2.82% - its instant access so as good as it gets (i was surprised they let me put this years max subscription in actually!)

Sarinee

Thanks Folks :-)