Changing ISA's - when is the best time?

mattastic

Hi,

I currently have an ISA with the Co op. Its only 0.5% so I'm looking to switch for a better interest. I quite like the look of the Halifax ISA saver online.

I'm also looking to buy a house over the next 12 months so will need access to my savings at some point this year.

I have cash available to top up my ISA also. Would it be best to switch my ISA over asap and then pay into it for this tax year? Is there a good or bad time to switch in the tax year?

Any advice much appreciated.

badger09

mattastic wrote: »

Hi,

I currently have an ISA with the Co op. Its only 0.5% so I'm looking to switch for a better interest. I quite like the look of the Halifax ISA saver online.

I'm also looking to buy a house over the next 12 months so will need access to my savings at some point this year.

I have cash available to top up my ISA also. Would it be best to switch my ISA over asap and then pay into it for this tax year? Is there a good or bad time to switch in the tax year?

Any advice much appreciated.

If you're looking at a 12 month horizon, you can get much better rates outside an ISA, in current accounts. Have a look around the forum - Nationwide, TSB, Lloyds, Santander etc

mattastic

Thanks for the reply.

Is it straight forward to transfer your ISA?

Should I keep a few pounds in my current ISA just to keep it open, if I transfer it into a current account?

Would I lose out on any interest, is there a good time to transfer?

Many thanks

jimjames

mattastic wrote: »

Thanks for the reply.

1) Is it straight forward to transfer your ISA?

2) Should I keep a few pounds in my current ISA just to keep it open, if I transfer it into a current account?

3) Would I lose out on any interest, is there a good time to transfer?

Many thanks

1) Easy

2) Depends on the amounts involved

3) You lose the interest in the ISA and gain the interest in the current account so the sooner you move to a better paying account the more you will benefit.

innovate

No point keeping anything in an ISA that pays 0.5%

Consumerist

Just a quick point - if you have paid any money into an ISA since 6 April this year then that is the only ISA you will be able to add to this tax year - you can, however, transfer it for a better rate. If you're going for a current account instead then that probably won't matter.

mattastic

Thanks for replies folks.

I haven't paid anything into my isa since 6th April. That was going to be my next question

I have about 30,000 in my 0.5% interest isa at the moment. I will need access to it over the next 12 months or so.

How does this sound.......

1. Transfer my cash into a different isa with better interest (any ideas welcome?)

2. Close original isa ive transfered cash from

3. Transfer all but a small amount, to keep new isa open, into current account (britannia select access saver paying 1.5%?)

Thanks again

Archi_Bald

If you need the money in the next 12 months or so, you might as well forget about ISAs altogether and put your money into current accounts

2 x £2,000 in TSB Plus (5% AER)
1 x £20,000 in Santander 123 (3% AER, £2/mth charge)
2 x £3,000 in BoS Vantage (3% AER)
plus add a Halifax Reward to your collection as it can pay you £60 a year if you go about it in the right way.

You could also consider £5,000 in the 4% Club Lloyds but this will cost £5 a month if you stop paying £1,500 a month into it.

There are threads on all the above on the forum.

Consumerist

If you are going to need the funds within 12 months, I agree with AB above. An ISA just won't give you the net return that the right current account will give you.

Where you have to pay an account fee to get the interest - make sure you close the account when you withdraw the funds then you'll avoid unnecessary fees. (e.g. Santander, Club Lloyds)