ISA i'm confused

lavinia21

Hi all hope you lovely people can help me I'm confused.

I have an isa and have been told for the 3rd time the rate is going down it will be going down to 1.1 in july. I have found an isa that gives you 2.5% but you can't transfer into it.

I have about £700 in my ISA at the moment i'm not sure what I need to do.

I'm sure the answer is simple just wanted to check.

thanks for taking the time to read and hopefully you will answer my query.

Lokolo

How much do you think you will be able to save this year?

lavinia21

about £3500

Lokolo

£5760 is your allowance for this year. If you think you can only save around £3500 that leaves you with £2260.

If you take out that £700, you would only be left with £1560 of your allowance. However, if you transferred it to another ISA (but at a lower rate), you would still have an additional £2260 to put in ISA. But that £700 would be at a lower rate.

Personally, if I were in your situation, I would withdraw the money and put it in as new money, only because you believe you won't use the whole of your ISA allowance anyway.

jalestine

I was goin to suggest transferring ur £700 to one that accepts transfers, but Lokolo's advice is far better. U've nothing to lose as ur well within the allowance and keeping ur money together is less confusing and 2.5% is a v.good rate nowadays.