Cash ISA confusion

SternMusik

Hi there,

The more I read up on cash ISAs the more confused I get. I hope someone can help.

I have ca. £8000 in a cash ISA (e-ISA) with my bank. This includes £4760 of this year's allowance. (Thus I have £1000 left in this year's allowance.). The interest on this account is 1.8% at the moment which is not bad. However my bank just sent me a letter that this will be reduced to 0.5% in November

My question is, can I take my cash ISA elsewhere by November? Even though I have paid into it this year? And would I be able to pay in the remaining £1000 once switched? Or would I have to do it before I transfer it?

I find ISAs really confusing, and would be grateful for some advice.

Lokolo

You can deposit more before or after, the choice is yours. However your new ISA must allow transfers (not all do), and you must do the transfer from an ISA transfer form.

Be careful, there are ISAs out there which only allow one deposit (majority of fixed term ISAs), so if you chose not to use the rest of your allowance, and then transfered, you wouldn't be able to top up with the £1k.

SternMusik

Thanks, that's very helpful.

I have had a look around for instant access online cash ISA account (allowing transfers), and the best one I've found is the Virgin Money 1.75% offer ( http://bank.virginmoney.com/savings/find/virgin_easy_access_cash_e_isa_issue_5/overview/).

Any thoughts/experiences on this account? Does this sound like a good deal?

typistretired

Nottingham Building Society Access Saver ISA is paying 2.10% and allows transfers of previous years isas. The problem it has to be opened via post but you could ask for a transfer form when opening and you have to give 60 days notice to withdraw your cash. It also allows to make regular smaller payments throughout the year. Their site gives details of how to apply.

SternMusik

Excellent, I'll look into this account as well.

Many thanks for the advice.