Keep cash ISA or move to different savings package

Spanishsunawaits

I have £40,000 in a cash ISA. Paying 1.40% from 6 April, increased to 1.65% from 1 Dec. I was wondering whether to move out to Atom Bomb 3 year at 2.18, or invest in new NS guaranteed income bond at 2.15 for 3 years. If I do change, do I change now or wait til after 5 April when I get full interest from current ISA

ColdIron

Why are you looking at the NS&I Guaranteed Income Bonds at 2.15% that pay monthly and not the 2.20% Guaranteed Growth Bonds? Do you need the monthly income? Does your old ISA pay monthly?

Spanishsunawaits

Thanks. I hadn’t looked at those. My ISA doesn’t pay monthly and I don’t need the monthly interest as income so your suggestion would work for me. I shall look into that. If I go that way, I guess I’m better moving the money now rather than wait? Might sound a daft question but I would still get the ISA interest due from 6 Apr to date?

Eco_Miser

Spanishsunawaits wrote: »

Might sound a daft question but I would still get the ISA interest due from 6 Apr to date?

Yes. Check your Terms & Conditions for early withdrawal penalties.

badger09

Spanishsunawaits wrote: »

Thanks. I hadn’t looked at those. My ISA doesn’t pay monthly and I don’t need the monthly interest as income so your suggestion would work for me. I shall look into that. If I go that way, I guess I’m better moving the money now rather than wait? Might sound a daft question but I would still get the ISA interest due from 6 Apr to date?

If your ISA is instant access you can close it now and interest due to date will be added to the balance.

If it is fixed rate/fixed term there will be a penalty if you close it early.