Urgent help need please.

LadyDee

Hi, I really need some guidance as to how to deal with my cash ISA which is an 18 month Fixed with Halifax. I have just realised that this ISA matures on Friday 4th Dec. (I have a sum of around £86,000 is this ISA which of course means I'm over the new protection limit).

For various reasons I can't commit to more than a new year/18th month term.

My option with Halifax is to transfer it to an ISA 1 year at 1.15%.

I also have an online Virgin 1 year ISA which pays 1.65% and matures next April.

My ISA with Virgin was opened with the ISA allowance for the 2015/16 allowance. so I don't think I can open a new ISA with another provider as I've used my allowance for this year?

Please can somebody suggest what I can do with my Halifax ISA - especially as I've left it to the last minute.

If I put the total of my Halifax ISA into their 1 year fixed as an interim measure whilst I find the best place to put it then I will lose 90 days interest

I should add that I will benefit from next April from the tax-free allowance on savings interest.

jimjames

Transfers of old ISAs are not affected by any you have opened this year so you can transfer without problems.

Over62

You can't open a new ISA for NEW money if you've already used your allowance for this year, but you can open as many ISAs as you like to transfer your existing ISA. There is no need to transfer the whole of your ISA to the same provider if you want to keep your balance below the protection limit.


I suggest you split your capital. You can get better deals than the Halifax - the AA pays 1.76% and Tesco 1.75% for a one year fix. There are even better deals with Shawbrook Bank and Al Rayan Bank. When you complete your ISA transfer form, there will be a question asking how much you want to transfer, you don't need to transfer the whole.


If you won't need the whole of your capital in 12 months, you could split the amount you don't need and invest that in a longer term ISA paying better rates.

Over62

You can't open another ISA this year for NEW money but you can open as many ISAs as you like to transfer your existing ISA. There is no need to transfer the whole of your capital to the same provider, so I suggest you split it between two or three accounts.


There are better offers around than the Halifax - the AA is paying 1.76% and Tesco 1.75% for a one year term and there are better offers still from less mainstream providers.


If you won't need the whole of your capital in 12 months, consider moving the amount you won't need into a longer term fix for a better deal. When you complete the ISA transfer form for your chosen provider, you can state how much of your current ISA you want to transfer and also let them know you want to wait until your current deal expires so that you won't lose any interest from the Halifax.


It's no way too late to sort this out - you've plenty of time.

LadyDee

Thank you very much for your help. I'll try to sort this out by Friday, else the Halifax automatically transfers the money into a variable rate ISA, paying peanuts, although if it's only in there for a few days I don't suppose it'll make much difference. I've confirmed with the Halifax that this is an instant access ISA so no penalties apply for transfers or withdrawals.

I'd hate to be rich!

jimjames

If you don't need access to all the money and are looking for higher income than you're getting from cash ISAs then putting part of the money into a S&S ISA is an option. The capital isn't guaranteed but you could get up to 4% income and long term you should beat inflation.