worth a transfer?

$nake_eye$

Hi all,
I currently have just over £1,000 in a mini cash ISA with YBS at a rate of 5.65%. Is it worth transffering this into another ISA with a higher rate considering time to do it / paperwork / benefit?

Thanks.

P.S im looking to invest around another £1000 this tax year.

pbw

yes, it is worth transferring...this is because the new ISA bank/BS will backdate the interest so that no interest is lost...please could others confirm this...

Ian_W

If its the E-Isa then the rate increased to 5.8% after the previous rate rise - not the full amount of the rise - but never the less it's no longer 5.65. They haven't yet announced what they're doing in response to this months rise and on past form won't until towards the end of July, so I'd at least wait and see what they're going to do before you decide.

The best variable rate that allows transfers in is Kent Reliance who have upped their rate [wef 1.8.07] to 6.21% BUT my understanding they credit your account 2 days after they receive the cheque so you could end up losing a few days interest with postage as well, especially over a weekend.

Now the interest on your £1K with YBS is £58 [possibly more if they do increase the rate as I would expect] compared to £62.10p with KR's already increased rate over a FULL year. Only you can decide whether it's worth it for you but I've got £19K with YBS and I'm waiting to see if they're gonna up the rate before I decide.

HTH.

$nake_eye$

Thanks for the help, ill probably leave it there until they make a decision.. but even then, if the gains are that marginal, perhaps i will leave it where it is.

Thanks again.