Transferring money out of NSI Cash ISA

Albermarle

You could leave it with NS&I but transfer it to premium bonds . 1.4% average payout and tax free.

colsten

NS&I don't preclude ISA transfers out, they simply can't participate in doing it electronically. All you need to do, after you opened your Virgin ISA, is fill in their paper transfer request form and post it off to them, or hand it into one of their stores. It's all described on the Virgin Money website.

colsten

Albermarle wrote: »

You could leave it with NS&I but transfer it to premium bonds . 1.4% average payout and tax free.

You could, provided the ISA is less than £50k, but it would be a daft move if you want to keep your money in an ISA wrapper. There is also zero guarantee that you would achieve the average interest rate. You might strike lucky and get more but most people get below the average - - after all, it takes many people to finance the above average "wins".

eskbanker

Albermarle wrote: »

You could leave it with NS&I but transfer it to premium bonds . 1.4% average payout and tax free.

As above, 1.4% is only the average in the sense of the mean, i.e. total prizes versus total bonds, but a more realistic expectation, i.e. the median, is around 1.2-1.26%, reflecting the distorting effect of a very small number of very large prizes.

You can play with the numbers via https://www.moneysavingexpert.com/savings/premium-bonds-calculator/ to see the effect of this for different holdings over different periods....

Albermarle

As above, 1.4% is only the average in the sense of the mean, i.e. total prizes versus total bonds, but a more realistic expectation, i.e. the median, is around 1.2-1.26%, reflecting the distorting effect of a very small number of very large prizes.

I understand that, but still at the end of the day the average payout is 1.4% and you never know …. . Not that bad for a easy access , tax free account . Better than the NS&I direct ISA which pays 0.75%