Top Cash ISAs Discussion Area

TheGame7

I have recently opened the Natwest e-ISA only to see its interest rate drop (new money plus transferring my previous ISA built up over the last three years).

They are currently processing transferring my previous ISA balance from my last provider - it could take a month.

I now think I would have been better adviced to open a First Direct Fixed Rate ISA.

Am I able to close the NW ISA and transfer the whole balance to FD during this tax year?

Baldur

TheGame7 wrote: »

Am I able to close the NW ISA and transfer the whole balance to FD during this tax year?

No, closing an ISA loses its tax-free status and would also mean that you would be attempting to open & subscribe to two Cash ISAs in one tax year.

You would have to wait for the present transfer to complete (unless you want absolute chaos to ensue), then transfer the Natwest ISA by completing FD's ISA transfer form and letting them arrange the transfer process.

If your Natwest account was opened up to & including 14th May, the rate has not dropped - the reduction is currently only applicable to accounts opened after 15th May - see http://www.natwest.com/personal/savings/g2/isas/e-isa.ashx#section2.

favemuppet

TheGame7 wrote: »

I have recently opened the Natwest e-ISA only to see its interest rate drop (new money plus transferring my previous ISA built up over the last three years).
QUOTE]

The rate has only dropped for accounts opened ON OR AFTER 15 May. If you opened it before you still get the higher rate.

See http://www.natwest.com/personal/savings/g2/isas/e-isa.ashx#tabs=section2

1007

Hi

Two years ago i invested 2k in a Scarborough Building Society Mini Cash ISA. They have now been taken over by the Skipton BS who have cut the interest rate to 2%. The interest is due to pay on the 1st July. When this has paid can i close the account and open a new ISA or would this class as having two in the same year.

Thanks

Baldur

1007 wrote: »

Hi

Two years ago i invested 2k in a Scarborough Building Society Mini Cash ISA. They have now been taken over by the Skipton BS who have cut the interest rate to 2%. The interest is due to pay on the 1st July. When this has paid can i close the account and open a new ISA or would this class as having two in the same year.

No need to wait until July (unless it's a fixed-term account), you can simply transfer the Cash ISA to a new provider that accepts transfers and pays a better rate. You just need to select a new ISA provider and complete their ISA transfer form - they must arrange the transfer. The full balance of your Scarborough/Skipton account would be transferred (including all interest earned up to the date of transfer).

Cash ISA transfers do not affect your annual ISA allowance, so you can also open a new Cash ISA for the 2009/10 tax year, if you wish.

saving_not_shopping

Due to a lack of organisation on my part I failed to open the First Direct Regular Saver ISA before the end of April. Is it worth me opening it now? I would have to pay into it for 12 months so I will have to pay-in in April 2010 therefore forcing me to have that ISA (which drops rate significantly after the initial 12 months) for the remaining 11 months of 2010-2011.

Am I right?

Thanks!

Baldur

saving_not_shopping wrote: »

Due to a lack of organisation on my part I failed to open the First Direct Regular Saver ISA before the end of April. Is it worth me opening it now? I would have to pay into it for 12 months so I will have to pay-in in April 2010 therefore forcing me to have that ISA (which drops rate significantly after the initial 12 months) for the remaining 11 months of 2010-2011.

Am I right?

No.

You can transfer the ISA to any other ISA provider on maturity, by completing the new provider's ISA transfer form, and then continue to subscribe any remaining balance of your 2010/2011 ISA allowance to the transferred account.

stphnstevey

Can I just confirm (as this is so confusing).

I have just opened a NEW S&S ISA.

I think this now means:
- I CAN'T contribute to an existing S&S ISA or open another one in this tax year
- I CAN contribute to an exisiting or open a new Cash ISA though this tax year?

Baldur

stphnstevey wrote: »

Can I just confirm (as this is so confusing).

I have just opened a NEW S&S ISA.

I think this now means:
- I CAN'T contribute to an existing S&S ISA or open another one in this tax year

Correct.

- I CAN contribute to an exisiting or open a new Cash ISA though this tax year?

Depends how much you have subscribed to the current tax year's S&S ISA - Currently (as the amounts will change from October 2009/April 2010, depending on your age) if less than £7,200 yes, you could subscribe the difference between what you have subscribed to the S&S ISA and £7,200 (but only up to the Cash ISA maximum of £3,600) .

stphnstevey

Thanks Baldur - glad someone can interpret the rules!