Top Cash ISAs Discussion Area

poppy10_2

grownuptoo wrote: »

I've a dilemma - my ISA (and hubby's) for £3600 each interest rate now fallen to 3.55%. ISAs are with Egg. We also have fixed rate saving account till Aug 2009 at 6.5% - should we move our money out of ISA?
I know the usual advice re not closing an ISA but the difference is a fair bit so what should we do? We both pay normal tax

Any advice gratefully accepted.

Don't move money out of the ISA.

I calculate you will earn £79 extra interest by moving your £7200 from the ISA to the fixed rate savings account up to August 2009. It's really not worth losing your tax free allowance for this paltry sum - in future years when interest rates are higher, the benefit of the tax-free status on the £7,200 will far outweigh this short-term benefit.

It would be worth transferring your ISA to a fixed rate provider, though, although you'll struggle to get a rate much above 4%

grownuptoo

That seems good advice poppy10. I need to leave it in as you say its a long term investment and the short term gain isn't worth losing the benefits.

Goldfish_2

Hi
Can anyone help - on the subject of Cash ISA's - I've got one but it's not doing particularly well (1.75%). I have used some of my £3600 entitlement this year but want to use the rest before April. If I want to open a new ISA with someone else do I need to complete this year's entitlement in my current one then start a different one next tax year or can I use the rest of my entitlement with a new provider?? Is it worth / can I transfer my current sum (I am guessing there might be penalties from my current ISA provider to transfer etc so I will look into that when I get a chance)!
Many thanks for any info....

Baldur

You can either top up your Cash ISA then transfer it or transfer it then top it up to your maximum allowance of £3,600 - remember that you have to complete your chosen new provider's transfer form and they will arrange the transfer.

Most easy access Cash ISAs have no penalties for transfer but check the Terms & Conditions of your present account to be sure.

purplestar133

By mistake, I have a payment from a cashback site (Quidco) going into my ISA which is full for this year. What will happen to the money? Will it get bounced back to my cashback site. Will I face any kind of penalty for exceeding my ISA subscription limit?

Lokolo

purplestar133 wrote: »

By mistake, I have a payment from a cashback site (Quidco) going into my ISA which is full for this year. What will happen to the money? Will it get bounced back to my cashback site. Will I face any kind of penalty for exceeding my ISA subscription limit?

Your bank should automatically reject it. Phone them that you cannot stop the transfer and what you should do.

You should be ok though.

leaphaze

purplestar133 wrote: »

By mistake, I have a payment from a cashback site (Quidco) going into my ISA which is full for this year. What will happen to the money? Will it get bounced back to my cashback site. Will I face any kind of penalty for exceeding my ISA subscription limit?

I was in a similar position but the money came from my bank account. The amount above the limit was returned down the same route back to my bank account, so I assume you'll find the money going back to Quidco. Might be an idea to let them know what's happened. And no, there shouldn't be a penalty.

Happy New Year!

purplestar133

leaphaze wrote: »

I was in a similar position but the money came from my bank account. The amount above the limit was returned down the same route back to my bank account, so I assume you'll find the money going back to Quidco. Might be an idea to let them know what's happened. And no, there shouldn't be a penalty.

Happy New Year!

Thank you. Happy new year to you too.

dekkard

I've just checked the interest rate on my Alliance & Leicester ISA and the rate has dropped considerably.

This isn't a real surprise, but they didn't notify me. Are banks not obliged to notify customers when they change their savings interest rates?

Lokolo

dekkard wrote: »

I've just checked the interest rate on my Alliance & Leicester ISA and the rate has dropped considerably.

This isn't a real surprise, but they didn't notify me. Are banks not obliged to notify customers when they change their savings interest rates?

No but they have to advertise the rates in newspapers and such.