Top Cash ISAs Discussion Area

joey0027

blueberrypie wrote: »

Info for transferring in funds to cash ISAs is at http://www.if.com/savings/transferexisting.aspx - it also says you can apply by telephone, so if you're not sure what you're doing, that might be the best option.



I can't make recommendations - I'm not qualified or licensed to do that - but while I can see the attraction in having it all in one place, I'd rather split it up and make more money :-D So I've thought about how much I need to keep accessible, how long I'm happy to tie up funds for, what my goals are for the next few years, what emergency-funds arrangements I've got, etc, and chosen with all that in mind. As it goes, I've put my new money into the A&L 3.5% Flexible ISA (got in before the rate dropped) and some of my transferred funds into a two-year fix with Halifax, also at 3.5%. I've another ISA maturing in a couple of weeks and haven't yet decided what to do with that.

Thanks for your reply.

I'm personally not keen on being locked into any sort of fixed deal as I like to know that all of my finances are immediately available should they be needed for whatever reason.

If I were to deposit this years allowance in the current top deal of 3.2%, then best deal I can find with internet access for the transfers from previous years is around 2.5%. If I were however to place everything in a Santander account which I believe would be 2.75% as I would have have over 9.5K, the interest over the year would only be around £5 less. I guess that this could change though if the base rate changes as the top deal guarantees 2.7% above the base.

Would this be the best option for me in your opinion?

Also with the Santander, does the total deposit including this years allowance & transfers have to exceed 9.5K to receive the rate of 2.75% or do the transfers alone have to be this amount to qualify?

Many thanks.

fishier

Can anyone help? I just tried to close last years Cash ISA at Britannia to open a new one at A&L i was told by closing an ISA I would not be able to open a new one until NEXT tax year unless I left £1 in the existing account. I don't want to transfer as I want to get a better interest rate and I won't be able to save much this year - Why can't I close last years ISA?

blueberrypie

joey0027 wrote: »

I'm personally not keen on being locked into any sort of fixed deal as I like to know that all of my finances are immediately available should they be needed for whatever reason.

If I were to deposit this years allowance in the current top deal of 3.2%, then best deal I can find with internet access for the transfers from previous years is around 2.5%.

If I were however to place everything in a Santander account which I believe would be 2.75% as I would have have over 9.5K, the interest over the year would only be around £5 less. I guess that this could change though if the base rate changes as the top deal guarantees 2.7% above the base.

Would this be the best option for me in your opinion?

It's really up to you. As you say, there's not a lot in it, but if the base rate does go up, it does make a difference. And the Direct ISA is a variable rate, so that might change too.

In your position, I'd do much what I already did - take the Flexible ISA for the new money and fix the rest for one or two years. I'd reckon that the odds of me suddenly needing access to more than this year's £5k weren't high. But you might feel differently, so you have to do the balancing of the pros and cons for yourself.

Also with the Santander, does the total deposit including this years allowance & transfers have to exceed 9.5K to receive the rate of 2.75% or do the transfers alone have to be this amount to qualify?

I think it would all count, not just the transfers.

blueberrypie

fishier wrote: »

Can anyone help? I just tried to close last years Cash ISA at Britannia to open a new one at A&L i was told by closing an ISA I would not be able to open a new one until NEXT tax year unless I left £1 in the existing account. I don't want to transfer as I want to get a better interest rate and I won't be able to save much this year - Why can't I close last years ISA?

Have you contributed to your Britannia ISA since April 6th?

If the answer is no...
...then you can close it - or you can transfer the funds to another ISA. You say you don't want to transfer, but make sure you understand the consequences of withdrawing and re-depositing the money. If you've any doubt, go and read what I wrote on this thread earlier today: http://forums.moneysavingexpert.com/showpost.html?p=31671549&postcount=1399

If the answer is yes, you have put money into your Britannia ISA since April 6th...
...the situation is different, because you have "subscribed" to it for the 10/11 tax year, and in that case you would not be allowed to open another cash ISA for 10/11. It has nothing to do with closing the Britannia ISA - it's because you've already put new money into it in this tax year.

fishier

Many thanks Blueberrypie for answering my query - I have not paid any money in since April 6th

HardSpend

hello I paid in my maximum allowance into my First Direct ISA this tax year so it is about 20k but would like to transfer to another provider

Is it possible to transfer into say Post Office who have 3% rate? I'm not sure because it says they need a minimum deposit of £500 and maximum of £5100. Bit confused, should I have transferred first then paid my allowance into the new provider??

kad1

hostie-b wrote: »

Hi kad1, In the new tax year 10/11 you can put up to a total of £5100. If you transfer your money from a previous ISA to a new ISA this does not count towards your allowance. So, if you already have £3600 saved, plus interest from tax year 09/10, some new ISAs will allow you to transfer this in and then in the tax year 10/11 put in £5100.

I believe you can choose how much you want to transfer into your new ISA ( I was given this option last year when I moved mine to the Halifax) so if you can decide how much you need from your ISA to spend, just transfer the rest into the new one. This way you're not losing any of your year 10/11 allowance of £5100. This is what I think you were wanting to do?

Just remember that if you deposit money from your 10/11 allowance and then withdraw some you can only put the remainder of your allowance in - so if you put in £3000 but then take out £300. you only have £2100 left to put in for the 10/11 tax year.

You may find, depending where you're thinking of moving to, that you actually cannot transfer in from your old ISA. Just read all the small print and any penalties for withdrawing money, closing and transferring etc.

Hope this all makes sense.
If I've got any information wrong that anyone spots, please let us know. This is my first ever proper post!

thanks a lot, yr 2nd paragraph describes what i'd like to do. thanks again

Rmonty

Hi. Why do you show a reduction in interest for each tax band in your latest table comparing ISAs to bank account returns? An ISa is tax free.

rb10

Just to point out an error in the main site's ISA page, for the Nationwide e-ISA it states that

Online, but NEED to have its current account.

In fact (as they then go on to state), any card account will do, so if you don't have one at the moment, you can simply open an InvestDirect account with £1 (this is a [rubbish] savings account) which will make you eligible - there's no need for a current account.

shymanuk

hi ive £10,895.26 from old isa and £5,100 for this yr ive no idea of the best deal is a+l for the new yr on 5,100 and 2.7 on the remaning 10,895, or am i better to put all in a 2.7 and be done with it for a yr any help be great dont need to get at this money in the 12 months