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No (N)ISA transfers accepted

My partner has a £10k fixed-rate ISA maturing August 1st. Coventry does not accept ISA transfers for their 2.75% fixed-rate ISA (see Martin's recommendations). The amount has remained static for a few years since she went part-time (ie. she has not added to her ISA) and thus I suggested that she drop the ISA to normal cash and then invest in the Coventry! I realise that if she comes into money this tax year then it will drastically reduce her NISA allowance but it does give her access to a high paying, flexible rate; you takes your chance.....! Any other pitfalls that anyone can see?

Comments

  • Your_Hero
    Your_Hero Posts: 883 Forumite
    You've just pointed out the main downside. Otherwise it's all good.


    Make sure the Coventry ISA will allow you to pay in £10k. Some require you to pay in the maximum ISA allowance of £15k to give you the deal.
    Stephen Covey once said that "when you teach once, you learn twice". That is the primary reason for my participation on the forums as an IFA.

    Although I strive to provide accurate information in my posts, there may be the odd time when I fail. Yes I know it's hard to believe but even Your Hero can make mistakes. Apologies in advance.
  • jimjames
    jimjames Posts: 19,264 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Or pay into 5% current accounts instead
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    mac65 wrote: »
    I suggested that she drop the ISA to normal cash and then invest in the Coventry!
    what do you mean by that?
    mac65 wrote: »
    I realise that if she comes into money this tax year then it will drastically reduce her NISA allowance

    Everyone's ISA allowance this financial year is £15,000, regardless of how much money they already have or still get.
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