Top Cash ISAs Discussion Area

bhayani

My son has an Isa with less then 3000 in it. It is about to go to a stupid rate of .something.

I know h can transfer it out and get one that is lets say 1.8% ( current best available ) but why ?

HAve I got my thinking all wrong but as I see it , he can take this money and cash it out . stick it on his Santander 123 account and get more interest . even taking the tax away , its still more then this .

Things might change int the future regarding rates etc.. but he will need the money in 3 years anyway.

Is there a good reason tot stay in the the ISA?

Archi_Bald

If he is sure he needs the money in the next 3 or 4 years, I agree, there's no point suffering the bad ISA rates. Much better to go all-out with the best regular savers and current accounts.

However, all current accounts have variable rates, and banks could drop the rates anytime they like. So there is a certain amount of risk involved.

VfM4meplse

So what's the answer to the FD conundrum? I'm reluctant to put the money away for 5 years as you can't predict what kind of deal might be offered for amounts over £40k in that time. Might be better for me to stay flexible for the time being, with a pitiful short-term return.

Just to check - there's no way of converting a cash ISA to a stocks and shares ISA once invested, even if no S&S ISA was taken in a given year?

Archi_Bald

VfM4meplse wrote: »

Just to check - there's no way of converting a cash ISA to a stocks and shares ISA once invested, even if no S&S ISA was taken in a given year?

Not sure I understand your question - what is it you invested? Are you talking about your money in the cash ISA? If so, that's a saving, not an investment.

You can transfer your cash ISA to an S&S ISA any time you like. But you can't transfer an S&S ISA to a cash ISA ever.

As with any ISA transfer, the transferred sum does not count towards your annual allowance. Only new deposits, either into the cash or the S&S ISA, do. Therefore, for a transfer of a cash ISA into an S&S ISA, it's not relevant whether you have invested into the S&S ISA that financial year or not.

VfM4meplse

^^^^ Thank you! I think I am going to take a risk and do just that. It as to give me a better return than cash ISAs. By investment I mean that its not money I intend to access until after retirement.

midge888

hi,could i ask please,i have £2000 in my building society account and am thinking of getting an isa.which is the best isa please?i want one where i am unable to make withdrawals from the account.hope you can help

10_66

midge888 wrote: »

hi,could i ask please,i have £2000 in my building society account and am thinking of getting an isa.which is the best isa please?i want one where i am unable to make withdrawals from the account.hope you can help

Kazza's thread is the best place to look, HERE's the link for it.

Consumerist

midge888 wrote: »

hi,could i ask please,i have £2000 in my building society account and am thinking of getting an isa.which is the best isa please?i want one where i am unable to make withdrawals from the account.hope you can help

. . . or you can get some suggestions from the MSE <Best Cash ISAs> page.

ranciduk

Just checked Halifax website

As of Dec 3rd - it's 1.65% for a 2 yr fix

Garbage!

Got 3.7% last time I fixed for 2 yrs

Ridiculous

Do people think it may be better to just fix for 1 year - in the hope the rates my rise in another 12 months?

Gutted ...

Consumerist

ranciduk wrote: »

Do people think it may be better to just fix for 1 year - in the hope the rates my rise in another 12 months?

For what it's worth, that's been my plan. The waiting game is probably the safest game in town at the moment - unless you're up for more risk.