15k nationwide isa

catoutthebag

I have 15k in an old nationwide isa paying 1.5%
I haven't opened another isa
Thinking of opening the 2.5% isa but they don't accept transfers and ill only be saving 100-250 a month
Should I continue to open a new account or wait til a decent transfer account comes up so I can transfer the 15k and gain interest on the whole lot?
I know I can't open more than 1 isa but I guess a could open a 2.5 isa and transfer to a better one if it comes up?
Thanks

innovate

Any ISA transfer does not affect your ISA allowance for the current year. I.e. You can transfer your existing ISA if you find a worthwhile provider to transfer to, and you will still have your 2014-15 ISA allowance.

For your 2014-15 cash ISA money, might wish to consider current accounts instead of ISAs since they are more than likely to pay more interest than ISAs do. You can still decide next March whether to put the money into an ISA.

I see from another post of yours you also have an S&S ISA - are you sure you want to put your entire ISA allowance for this year into a cash ISA? What is your strategy splitting your ISA contributions between cash and S&S?

catoutthebag

innovate wrote: »

Any ISA transfer does not affect your ISA allowance for the current year. I.e. You can transfer your existing ISA if you find a worthwhile provider to transfer to, and you will still have your 2014-15 ISA allowance.

For your 2014-15 cash ISA money, might wish to consider current accounts instead of ISAs since they are more than likely to pay more interest than ISAs do. You can still decide next March whether to put the money into an ISA.

I see from another post of yours you also have an S&S ISA - are you sure you want to put your entire ISA allowance for this year into a cash ISA? What is your strategy splitting your ISA contributions between cash and S&S?

RE your first paragraph; I know

RE last paragraph; I won't be using all my isa allowance. As mentioned I only plan to put 100-250 pcm into a cash isa

RE 2nd paragraph by considering current accounts ie withdrawing my cash isa I'd lose the tax free wrapper for the year until next March and I'd be weary about that

innovate

From your OP it appeared you were asking about the difference between transfers of previous years ISAs and contributions to current year's one. Apologies for explaining to you if you already know, but may be you could explain why you asked the question then.

Why are you splitting your ISA allowance between investments and cash ISAs? If you have short term cash savings needs, a cash ISA is probably the worst place to put your cash into. Note I have not suggested that you withdraw your cash ISA into current accounts but it might well be sensible. It all depends on how much money you have/wil have, what you intend to do with it , and - if you are venturing into investments (incl S&S ISAs) - what your attitude to risk is. In another post, you suggested you have an IFA - what does that IFA suggest you do?

kidmugsy

innovate wrote: »

I have not suggested that you withdraw your cash ISA into current accounts but it might well be sensible.

It's what we are doing: the interest rate differential makes it irresistible.

jimjames

catoutthebag wrote: »

RE 2nd paragraph by considering current accounts ie withdrawing my cash isa I'd lose the tax free wrapper for the year until next March and I'd be weary about that

If you had £50k in cash ISAs then withdrawing it would be a worry for losing the tax free wrapper. For £15k it really doesn't matter.

If rates increase beyond the 5% you can get outside an ISA then you can easily get the money back inside an ISA within a year or so. At the moment if your aim is to maximise your return then an ISA isn't the place to do that.

catoutthebag

Is this a good option:
Withdraw 15k from cash isa
Place into high % current or savings account til ...
Then dripper that into a 12mth regular saver (3% plus, minimum) til June 2014
And then bung it all back into a cash isa if rates are better otherwise repeat?

kidmugsy

catoutthebag wrote: »

Is this a good option:
Withdraw 15k from cash isa
Place into high % current or savings account til ...
Then dripper that into a 12mth regular saver (3% plus, minimum) til June 2014
And then bung it all back into a cash isa if rates are better otherwise repeat?

Seems to be just about what we are doing.