Should I change ISA?

Chop

Hi all,

I'm new to all this but am getting increasingly annoyed when I realise how much money I have lost over the years by just trusting my bank that I'm getting a good deal. Hohum. ::)

Anyway, I have a mini-cash ISA with Lloyds and currently have about £1500 in it. I hope to start saving around £150 a month into my ISA from now on.

Should I stay with Lloyds or should I close this ISA and open a new one with someone with a better rate, say Abbey or Yorkshire BS?

I'm just not sure whether it's worth the hassle as it's a relatively small amount of money.

Thanks, all advice greatly appreciated!

Reaper

Well the obvious question when deciding to switch is how much interest are you earning now compared to how much you could earn if you switch. In the case of LLoydsTSB it is tiered, so depends how much you have got. As I'm feeling nice here is a link to the page which lists the interest rates for you.

If you want to switch it is easy. DON'T close your existing ISA and open a new one. If you do that you blow the current year's savings limits. Instead get the new ISA company to arrange the transfer for you. It is as simple as them sending you a form to sign and return. No hassle at all.

Chop

Many thanks Reaper.... so I'm currently only getting 4.15% as I have £1500. It'll take me a little while of saving my pennies to get to the next tier. So I guess it is worth switching.

Thanks for the advice about not closing my current ISA, I didn't know about that. Will ask for a form.

Many thanks for the advice. I think I'm going to like it here.

Chop

Ok, what do i do now? I just called Yorkshire BS to ask about transferring my ISA from Lloyds. They don't accept transfers so I will have to close my Lloyds one and then open one with them.

So, will this mess up saving limits?......I only have £1500 so far and won't make it to £3000 by April so does it matter?

Or.....should I leave my Lloyds ISA as it is and switch next April?

Confused now! ???

Thanks

Reaper

Well I'd start by not switching to the YBS then!

Abbey National offer a postal based ISA paying 5.35% (that's better than YBS).

If you prefer an internet based account then Intelligent Finance offer 5.1% and I know they accept ISA transfers because I've transfered one to them.

EDIT: I just checked and Abbey National do accept ISA transfers.

dunstonh

Welcome to the real world.
Be wary of Banks, building societies, loan companies, IFAs, solicitors, estate agents, and salesmen to mention but a few.

Be wary of paranoid individuals who think they know more than the professionals.  ;)

The LTSB Cash ISA has been in the top 15 Cash ISAs for the last 3 months on the 3k band. (out of 305).

Chop

Be wary of paranoid individuals who think they know more than the professionals.  ;)

;D ;D ;D Thanks! I tend to take paranoid individual comments with a large pinch of salt!!

Thanks again for your reply Reaper, much appreciated. Going to switch to an Abbey ISA.

Robert_Sterling_3

Fair enough.  

dunstonh

Lambeth b/s postal ISA 5.65%
Portman b/s (45 day notice) 5.5%
Staffordshire (45 day notice) 5.5%
Ipswich b/s 5.5%

Then come abbey postal ISA on 5.35%

Robert_Sterling_3

West Bromwich 5.75% 2 Year Fix.

Chop

Fair enough.  Your choice but look where not being wary of banks got you.


"I'm new to all this but am getting increasingly annoyed when I realise how much money I have lost over the years by just trusting my bank"

Robert, whilst i appreciate all comments, please respect that I can take any advice from individuals with a pinch of salt, if I so wish to do so.

Please do not pass comment on my personal circumstances of which you know nothing about apart from a flippant comment I posted.

Thank you to everyone who has offered advice, it's much appreciated.

Chop.