Top Cash ISAs Discussion Area

aharris19

Hi

I have approx. 60k in an FD ISA paying 3% and also an FD offset mortgage at base+1.89.

As the ISA rate goes down to 2% at the end of the month and there seem to be no easy access options better than my offset rate, I'm thinking of ditching the ISA and offsetting the money.

Is this a no-brainer or am I missing anything?
Thanks

Consumerist

ColdIron wrote: »

Technically this is not quite true. You can subscribe to one ISA and pay in new money (but less than the annual allowance). If you then subscribe to a second ISA and make a full transfer of the first you can pay in the remainder of you annual allowance

Unfortunately that is not correct. When you open an ISA you (should) sign an undertaking that you have not and will not subscribe to another cash ISA in the same tax year.

You can, however, open an ISA, transfer it and then continue to subscribe to it up to the annual limit. But it is the same ISA you will continue to subscribe to; it is just managed by a different ISA manager.

thenudeone

aharris19,

Once money is removed from an ISA, the tax-free status is lost forever (although obviously you get a new allowance every year).

When interest rates rise again (to more than the mortgage rate) you may regret taking the money out.

I wouldn't take £60k out of an ISA to get another 0.11%.

If you aren't likely to need the funds for some time, you can transfer them to West Brom http://www.westbrom.co.uk/westbrom/savings.product?id=6905&category=8 and get 3.15% fixed for 5 years. There is a 180 interest penalty for early withdrawal, but even if you withdraw after just 18 months you'll still be better off than putting it in the offset account.

ranciduk

Hello

Quick question for the experts

I have a Halifax Cash ISA and at the moment it's fixed at 3.7% until next April

I just checked what the fixed rates will be next time - and at the moment for a two year fix its a miserable 2%

My question is

Do people think next April it will still be around 2%?

Or will it be better

Or , I dread to think, even lower ??

Any thoughts apreciated!

Consumerist

ranciduk wrote: »

. . . Any thoughts apreciated!

Pick one out of a hat. Your result will be as scientifically accurate as any opinion you might get from an "expert"

Expert: A person who knows more and more about less and less until ultimately knows everything about nothing.

gunmaker

Definition of an expert:-

An Ex is a has-been and a spurt is a drip......under pressure.

ranciduk

Yeah...

Any remotely serious opinions?

10_66

ranciduk wrote: »

Yeah...

Any remotely serious opinions?

Unfortunately, it'll probably just be a case of waiting until April to see what's on offer, the trend with rates doesn't look very promising though from what's on offer at the moment. Unfortunately, I missed the Halifax fixed rate this April so ended up moving my ISA to first direct, which was a variable at 3%, but this is soon to drop to 2%, so I've now transferred that to a fixed ISA with West Brom for 5 years at 3.15%, and if I need the money before then I'll just have to bite the bullet and pay the 180 days penalty (which I worked out, if I left the money in for at least 18 months, then I would at least break even if it'd been left in at 2% instant access).

Consumerist

ranciduk wrote: »

Yeah... Any remotely serious opinions?

Give us a remotely serious question and perhaps we'll try.

My original supposition was that your guess is as good as anyone else's.

ranciduk

How was it not a remotely serious question? You argumentative pillock

P.s. thanks 1066