3.10% till October 2013, 2.5% for 12 months, or wait?

darkh0rse

I have 7k in a cash ISA, Nationwide Online ISA Issue 3, 3.10% until October 2013.

I haven't subscribed to any ISA this year yet.

Which of the following would you do in my situation?

1) Put more into this current ISA and get 3.10% until October at which point the rate reverts to next to nothing
2) Open a 2.5% ISA.
3) Wait until October to see if there is a better offer and transfer existing ISA at this point?

TIA.

oldfella

assuming the Nationwide account allows further deposits I would add to it, then transfer the whole lot out in October to whatever was best at that point.

darkh0rse

oldfella wrote: »

assuming the Nationwide account allows further deposits I would add to it, then transfer the whole lot out in October to whatever was best at that point.

Thanks oldfella, I think I may have fallen to a bit of a cleverly worded "friendly warning" from Nationwide, as it "helpfully" tells me:

Thank you for choosing to save in a Nationwide cash ISA*. The tax year runs from 6 April to 5 April the following year. If you make or have made a subscription into your Nationwide cash ISA during the current tax year, you cannot subscribe to another cash ISA with another provider until the start of the new tax year.
*The Nationwide cash ISA can be comprised of any of the cash ISA products provided by Nationwide.
Confirm that you want to continue.

This is implying I am locked in with Nationwide. Is this incorrect? Is it the case that I can simply open a new one but then must transfer as it is within the same tax year?

Thanks.

oldfella

you can transfer whenever you want unless its a fixed rate product - the only constraint is that current tax year subscriptions must be transferred in total.

darkh0rse

Great, thanks, I will deposit as much as I can in my ISA and transfer it all in October to whatever is best at the time, thank you!

psychic_teabag

You could try to open an account for the transfer now, to try to bag the current rate. You can't use any of this year's money, but you could do a partial transfer of a nominal amount from last year's funds just to open the account. Then just put this year's allowance into NW now. Then in October, if rates are up, open a new account, else transfer to the bagged account.

darkh0rse

psychic_teabag wrote: »

You could try to open an account for the transfer now, to try to bag the current rate.

V thrifty! Nice suggestion. Thanks.

kidmugsy

In my experience waiting for a better offer costs you money. Take the best that's currently available and then wait and see.