Closing an ISA

Goldfinch_295

Is it madness to close an ISA and open a Santandeer 123 account with the money? The ISA has matured and been transferred a couple of times but there is no more money to buy this year's allowance and probably won't be for a while. Also, the money may be needed to buy a car or provide the deposit for property. There does not appear to be a better rate of interest offered for any existing NISAs unless the money can be tied up for five years. Advice please.

SW17

How much is in the ISA? Are you a basic rate taxpayer?

Kendall80

If you are as you say likely to need the money soon then yes i'd move it out of your ISA (some prefer to keep that money sheltered from the taxman). However, you would be better off splitting amongst the various 5% accounts available and maybe the 4% club lloyds rather than Santander (amount dependent). That would maximise your return but still keep the money instantly available.

CKhalvashi

Kendall80 wrote: »

If you are as you say likely to need the money soon then yes i'd move it out of your ISA (some prefer to keep that money sheltered from the taxman). However, you would be better off splitting amongst the various 5% accounts available and maybe the 4% club lloyds rather than Santander (amount dependent). That would maximise your return but still keep the money instantly available.

However whilst this is the case now, how long will it be for?

I see the interest rate starting to rise soon, so this needs to be taken into consideration, too.

missile

If and when interest rates do rise, I would suggest ISA savers will be the last to benefit.


ISAs appear to be revenue for the banks and just a sad joke at savers expense.

colsten

CKhalvashi wrote: »

However whilst this is the case now, how long will it be for?

I see the interest rate starting to rise soon, so this needs to be taken into consideration, too.

Why should current accounts interest rates drop if, as you say, interest rates will be rising soon?

When do you think instant access cash ISA rates will be 3.2 or 4% again? I reckon it will be a very long time, if ever.

jimjames

CKhalvashi wrote: »

However whilst this is the case now, how long will it be for?

I see the interest rate starting to rise soon, so this needs to be taken into consideration, too.

Personally I don't see interest rates rising soon and when they do I expect the increase to be very slow and gradual. Initial prediction in 2009 was that rates would be like it for few months or year, every time it is expected the rise is delayed and by March it will have been 6 years. Even this year it was expected by end of year and now it may be mid next year or even 12 months time before it happens.

With ISA at £15,000 pa now most people can refill very easily if they take money out.