quick ISA help please

smiddle3

Hi all,

I have a flexclusive ISA through Nationwide on which I am getting a bonus rate of 4.25 % until October this year. My question is simply this...would it be more beneficial to pay into the same ISA this year,effectively accepting the 4.25% until October and then the basic 0.1% after that, or should I open a new ISA for this year at the best rates currently available (approx 2.6% I believe)

Cheers

pqrdef

It's not either/or. You can carry on paying in for now, and then transfer the whole lot to another product or provider in October, and then pay in to the new ISA.

pplchamp

I would do as above. Do note that some of the current products (like the Coventry 2.6%) may no longer be available when your Flexclusive ISA matures, so do bear that in mind.

david78

The coventry Poppy account has already been pulled.

But the OP doesn't need to get 2.6% in October to beat the 2.6% account over 1 year.

If the current years ISA is earning 4.25% until end October, an account paying 1.0% (or more) from November onwards is all that is needed to make more interest in 1 year (4.25% for 7 months and 1% for 5 months is equivalent to nearly 2.9% over 12 months)