Switching ISA

chl0e

I recently received an email from my bank to say interest rates for my ISA accounts are falling, my cash ISA from 0.35% to 0.01% and my Help to Buy ISA down to 2%. 

I was wondering if I could change providers for my ISA or would this not be possible due to the deadline for opening a help to buy isa being past? I’ve been with this bank my whole life and really disappointed in only getting 0.01% on my savings. Or is this decrease the same everywhere?

eskbanker

There are a few providers still offering HTB ISAs for switchers but only a couple of small players above 2%: https://www.moneysavingexpert.com/savings/help-to-buy-ISA/#bestbuys

There are many cash ISAs available with interest better than 0.01%: https://www.moneysavingexpert.com/savings/best-cash-isa/

Bear in mind that in any given tax year you can only pay new money into either your HTB ISA or your non-HTB cash ISA, unless you have both with the same provider and that provider is one of the few offering split ISAs....

Alexland

On the vanilla Cash ISA you might find there are better rates in non-ISA accounts and you may pay no tax on the interest anyway.

https://www.gov.uk/apply-tax-free-interest-on-savings

Macnosh

NEED HELP!
I have an isa with the Nationwide that decided to lower the rate after I’d paid into this years 20-21 isa . Really annoyed!
What do I do ? i have quite a bit invested can I transfer the maximum Fcs amount 85000 into another isa and leave the rest in the Nationwide  or do I have to transfer the full amount , that would put me over the compensation scheme figure, which always worries me with a new provider .

colsten

https://www.gov.uk/individual-savings-accounts/transferring-your-isa

You should never have more than £85k with any financial institution, regardless of how long you have known them.

badger09

The rule is that all current year subscriptions must be kept together. Previous years' subscriptions can be split & moved to 2 (or more) separate providers if you wish.

So, it depends how much is in your Nationwide ISA and how much of that has been paid in since 6th April 2020.

Finally, do you really need over £85k in cash ISAs?