A couple of ISA Questions

Livin_in_a_box

I currently have an ISA with £150 in with Marks and Spencer which I have had since June of last year. The interest rates have gone down by 0.75%, but I wanted to know that if I open a new account elsewhere and transfer my savings (I'm 18 without a job so I don't have £1000's ) into it, will I get my current interest to that point or do I have to wait until I've had the account for a year?

Thanks in advance, probably a stupid question but I couldn't find a definitive answer online

Gordon_the_Moron

When you close the old account you will get the money that is in it, plus any interest due up to that point so no waiting.

david78

You will get interest added at the time of the transfer provided you transfer all of the ISA.

If you transfer part of it, the remainder will stay open with M&S Bank and you would then get the interest added later.

jimjames

Although in most cases it is recommended to always transfer rather than close an ISA, if it is just £150 and you are unlikely to be anywhere near the limit for the year you may be better of closing it and opening a new one with the best rate as many won't accept transfers.

Don't expect too much though. 0.75% is £1.12p per year and if you get 2% then you'll only get £3 interest.

AlwaysLearnin

To be honest, if you don't pay tax then there's less (no?) benefit of an ISA anyway given the amounts you're talking. You can probably get better rates from non ISA accounts and register to get the interest tax free anyway