Confused about ISAs

thisisalasdair

Hello everyone.


I have £9,000 in an ISA with Halifax. The rate at the start of the financial year (13/14) was decent but has subsequently dropped to 0.5%. Interest is paid annually at the start of the new financial year. Do I not need to leave it in the ISA till after April to get the interest or can I move this now and get the interest anyway? I thought if I moved it I might lose what interest I've built up.


I'd like to move it to a higher interest account. Any tips on that gratefully received too.


Alasdair

CLAPTON

thisisalasdair wrote: »

Hello everyone.


I have £9,000 in an ISA with Halifax. The rate at the start of the financial year (13/14) was decent but has subsequently dropped to 0.5%. Interest is paid annually at the start of the new financial year. Do I not need to leave it in the ISA till after April to get the interest or can I move this now and get the interest anyway? I thought if I moved it I might lose what interest I've built up.


I'd like to move it to a higher interest account. Any tips on that gratefully received too.


Alasdair

normally when you move an instant access ISA you will get the interest added up to the day of the move


of course if it is an ISA with restrictions (e.g. a notice ISA) then there may be a penalty

talexuser

As above, no problem with interest as long as there are no penalties. Find your better rate, and ask them for the transfer forms. They will arrange the transfer so you do not lose tax free status on your money.

PeacefulWaters

They'll calculate interest daily. If you transfer to a new provider you'll get interest up to the day they close the account and send the funds elsewhere.

I'd suggest staying with them for now, on a higher easy access rate.

http://www.halifax.co.uk/isas/options-for-existing-customers/fixed-isa-maturity/

Then looking at the market in a month or so when other firms, including Halifax, will be offering more than at present.