Top Cash ISAs Discussion Area

le_loup

I assume it's not a fixed rate/fixed date ISA. If not you can transfer/draw out at any time. You will get interest on closure up to the closure date.

purplestar133

MattyClyro wrote: »

I have 10.5k currently in a Nationwide ISA I opened last year. It pays 2.2% currently but will revert to some feeble rate in August 2014.

Could I open a new ISA in April 2014 (that doesn't allow transfers in) and start paying in from my salary keeping the old ISA open until August 2014. Then transfer the old ISA total into my bank account and then into the new rate ISA when the 15k new limit kicks in in July 2014?

If I withdraw the funds out of the old ISA in August 2014 will I lose the interest that is paid out annually in September? I can keep some money into September to keep the ISA open ait for the interest to be paid and then transfer out and close.

My thoughts are this will ensure I get my latest ISA paid at 2.2% until the last possible moment and any new savings at a new ISA rate (not as good as last year but a better rate than an ISA that allows transfers in)

Will this work?

You can do that, and I know you want to open an ISA that doesn't accept transfers, but by withdrawing it from your ISA rather than transferring it, you will lose the 'tax free wrapper'. Not sure how much that matters now that the ISA limit is increasing to £15000 as it won't take as long to build up your 'pot' now.

enekomh

boobbby wrote: »

I am over 65 so the new one year pensioner bond paying 2.8% seems a bit pointless when I can get 3% at a Lloyds vantage account or a Santander 123 account. Might consider the 4% over 3 years with £10000 although that is only £100 extra per year and my saving are all tied up! For many years I have bought cash ISA's but now that also seems pointless because if interest rates rise sharply we can now move up to £15000 into an ISA's immediately. Mind I suppose if I was a paying 40% tax ISA's would still be very attractive

I wouldn't go for 4% if it's going to tie you money for 3 years. TSB will be offering from the 30th of this month a 5% on a current account up to £2000 and you can have 2 (plus possibly another joint one) so there you have £4000 totally available for any emergency expense giving you a higher rate than locking your money on a 4% box. The only drawback is that you need to put £500 per month in the account but you can take them out as soon as they go in (that's in fact what I'm going to do. 500 to the first TSB, then move them to the second TSB and finally lay them on the Santander 123 that can hold up to 20K).
Besides that TSB account, I'd dare say that in the coming 2 years 4% saving accounts will be widespread and possibly 5% ones as well so if you put those 10K on a savings account that locks it for 3 years you would be losing money in the long term.

leaphaze

enekomh wrote: »

500 to the first TSB, then move them to the second TSB and finally lay them on the Santander 123 that can hold up to 20K

Normally with minimum payments, transfers within the institution don't count. So you may require 4 rather than 3 transfers: TSB1 -> Santander -> TSB2 -> Santander. You'll need to check TSB's T&C.

badger09

leaphaze wrote: »

Normally with minimum payments, transfers within the institution don't count. So you may require 4 rather than 3 transfers: TSB1 -> Santander -> TSB2 -> Santander. You'll need to check TSB's T&C.

Currently, Lloyds, BoS and TSB internal transfers do count for minimum funding requirements

leaphaze

badger09 wrote: »

Currently, Lloyds, BoS and TSB internal transfers do count for minimum funding requirements

Never thought I'd live to see the day!

Archi_Bald

leaphaze wrote: »

Never thought I'd live to see the day!

Internal transfers with them did always count.

dosh37

Hi,

I have 5 different 1 year fixed rate ISA accounts.
They all reach maturity at different dates.
I get fed up with the hassle of trying to find a reasonable new rate, open a new account and arrange the transfer several times every year each time an account matures.

What I would like is to consolidate all the accounts into one to reduce the management overhead.
What is the best way to go about this while maintaining a reasonable interest rate while the consolidation takes place?

I was thinking about the Lloyds 2 year fixed rate cash ISA which offers 1.75% or 2% if you have over £20000. Looking at their terms and conditions, it is not clear if they allow further deposits or transfers in at any time after the account has been opened. I tried to call Lloyds to clarify but gave up after going though several telephone menus only to be told the usual 'all our advisors are busy'.

Archi_Bald

dosh37 wrote: »

Looking at their terms and conditions, it is not clear if they allow further deposits or transfers in at any time after the account has been opened.

It is very clear from their website that they allow further deposits.

It is not very clear whether you can make multiple transfers in, though I would expect you can. However, you need to confirm this with Lloyds if you want to be certain.

badger09

dosh37 wrote: »

Hi,

I have 5 different 1 year fixed rate ISA accounts.
They all reach maturity at different dates.
I get fed up with the hassle of trying to find a reasonable new rate, open a new account and arrange the transfer several times every year each time an account matures.

What I would like is to consolidate all the accounts into one to reduce the management overhead.
What is the best way to go about this while maintaining a reasonable interest rate while the consolidation takes place?

I was thinking about the Lloyds 2 year fixed rate cash ISA which offers 1.75% or 2% if you have over £20000. Looking at their terms and conditions, it is not clear if they allow further deposits or transfers in at any time after the account has been opened. I tried to call Lloyds to clarify but gave up after going though several telephone menus only to be told the usual 'all our advisors are busy'.

T&C of Lloyds 2 year fixed rate ISA say you can xfer in existing ISAs if you submit xfer forms at time of opening.

Depending on the maturity dates of your 5 ISAs, you get 2% in Santander 2 year fixed rate ISA and can pay in until 31 August 2014. If you are 123 account (or 123 credit card) holder the rate is 2.3%