ISA Question

compbren

Hi.

I've had my Cash ISA for a few years, and so far this year have put only £200 in it (I get a big bonus every March that I fill it with, a few thousand).

I currently have over £14,000 in this ISA. However the interest rate has gone to 0.25% now.

I'm wondering if it's worth transferring to a new provider. I've read up on here but still can't make sense of it. A few questions:

1) If I did transfer the 14,000, could I still fill it with my annual allowance until the end of the tax year (minus the £200 I've already paid into it).

2). Because it's coming up to the end of the tax year, would I still get the interest by transferring, and would that include any further amount that I put in before the end of the tax year.

Many thanks.

colsten

Yes to both of your questions.

If you are planning to hold your money in an ISA for several more years (upwards of 5-7), an S&S ISA might be a better option than a cash ISA.

compbren

Thank you.

Also, is the interest based on what part of the year you put the money in. If I did it tomorrow, say for example 1% on £10,000 account, would I get 1% on the whole amount (£100 interest) or because I'm creating/transferring the ISA IN THE 12th month of the tax year would I only get 1/12th of the interest. Sorry if that sounds stupid.

colsten

Interest is calculated daily based on the balance on the day. It will be paid upon maturity or closure. There might still be penalties for early closures/transfers, check your T&Cs.