Quick Transfer Question

akashi

I have saved £5,760 into an ISA 2013/14 account with Coventry Building Society.

After the 12th of April, the interest rate will be zero.

Can I open another 2013/14 account now which allows transfers and transfer the £5,760 to the new account say on 7th of April? This way I can earn interest on it for another 12 months.

Thanks.

eskbanker

In a word, yes, although it doesn't make any difference if you open the new account before or after the year switchover.

The benefit of cash ISAs is generally seen as accumulating a long-term tax-free holding, which necessitates transferring previous years' funds into competitive products pretty much every year, unless you go down the route of multi-year fixed rates.

akashi

Thanks for your reply.

I also have some ISA savings with Santamder which matures on 1st of May 2014.

Unfortunately the rates this year are low and I am wondering if I should just withdraw the money and put it into a high interest current account.

Any thoughts?

Thanks.