Best Option for One Year Fixed ISAs 28 October 2022 at 6:52PM in Savings & investments 14 replies 1.7K views

DoneWorking

I currently have £85k in a standard cash
ISA with Coventry on 1.85%

I have opened a new one year fixed ISA with Coventry at 3.95%
I still have £20k to invest in an ISA for this year

Making a total of £105000 in total 
I'm thinking of doing following

Transfer £52500 into the new ISA from my current ISA 

Open another ISA in December with another Bank when interest rates get even higher

Or just transfer the £85k into my new ISA

And open a new ISA with
£20 k in Dec

Bigwheels1111

Here are the best deals today.
Select how many year you want and untick box marked, show quick links first.
https://moneyfacts.co.uk/isa/fixed-rate-isas/?quick-links-first=false

Coventry 1 year 3.95%
Is it worth waiting a week or two. Just to see if Thursdays boe rise makes a difference.
As for splitting and moving, I dumped my isa for regular savings as tax is not an issue.

Band7

Bigwheels1111 said:

 
As for splitting and moving, I dumped my isa for regular savings as tax is not an issue.

I think you might mean tax is not an issue for yourself? As higher rate tax payers, or basic rate payers with significant savings, may well benefit from ISAs. This is especially true in the rising interest rate environment we find ourselves in now

Bigwheels1111

Band7 said:

Bigwheels1111 said:

 
As for splitting and moving, I dumped my isa for regular savings as tax is not an issue.

I think you might mean tax is not an issue for yourself? As higher rate tax payers, or basic rate payers with significant savings, may well benefit from ISAs. This is especially true in the rising interest rate environment we find ourselves in now

Yes Ive no tax as a low earner. 15K interest before I need pay tax.

Albermarle

ashby6567 said:

DoneWorking said:

I currently have £85k in a standard cash
ISA with Coventry on 1.85%

I have opened a new one year fixed ISA with Coventry at 3.95%
I still have £20k to invest in an ISA for this year

Making a total of £105000 in total 
I'm thinking of doing following

Transfer £52500 into the new ISA from my current ISA 

Open another ISA in December with another Bank when interest rates get even higher

Or just transfer the £85k into my new ISA

And open a new ISA with
£20 k in Dec

I may be wrong, are part transfers allowed? I'm under the impression that the whole ISA would have to be transferred. 

Good to know that the interest rates will be even higher in December. Do you have the jackpot numbers for the next Euro Millions Lotto draw please?

Part transfers are allowed, if the providers involved will do it or not is variable.
If the ISA you are transferring from contains any new money added this tax year, all this has to be transferred. Again the provider may take the view it is too much faffing about for them to split up new and old money, and just say the transfer has to be 100% or not at all. 

Gambler

DoneWorking said:

I currently have £85k in a standard cash
ISA with Coventry on 1.85%

I have opened a new one year fixed ISA with Coventry at 3.95%
I still have £20k to invest in an ISA for this year

Making a total of £105000 in total 
I'm thinking of doing following

Transfer £52500 into the new ISA from my current ISA 

Open another ISA in December with another Bank when interest rates get even higher

Or just transfer the £85k into my new ISA

And open a new ISA with
£20 k in Dec

Don't forget the safety limit is £85k.

DoneWorking

ashby6567 said:

DoneWorking said:

I currently have £85k in a standard cash
ISA with Coventry on 1.85%

I have opened a new one year fixed ISA with Coventry at 3.95%
I still have £20k to invest in an ISA for this year

Making a total of £105000 in total 
I'm thinking of doing following

Transfer £52500 into the new ISA from my current ISA 

Open another ISA in December with another Bank when interest rates get even higher

Or just transfer the £85k into my new ISA

And open a new ISA with
£20 k in Dec

I may be wrong, are part transfers allowed? I'm under the impression that the whole ISA would have to be transferred. 

Good to know that the interest rates will be even higher in December. Do you have the jackpot numbers for the next Euro Millions Lotto draw please?

Oh how we laughed at your sublime joke 

It is most likely that interest rates will go up in December if not before

And yes

Part transfers are allowed but need to be done at branch or by phone 

DoneWorking

Albermarle said:

ashby6567 said:

DoneWorking said:

I currently have £85k in a standard cash
ISA with Coventry on 1.85%

I have opened a new one year fixed ISA with Coventry at 3.95%
I still have £20k to invest in an ISA for this year

Making a total of £105000 in total 
I'm thinking of doing following

Transfer £52500 into the new ISA from my current ISA 

Open another ISA in December with another Bank when interest rates get even higher

Or just transfer the £85k into my new ISA

And open a new ISA with
£20 k in Dec

I may be wrong, are part transfers allowed? I'm under the impression that the whole ISA would have to be transferred. 

Good to know that the interest rates will be even higher in December. Do you have the jackpot numbers for the next Euro Millions Lotto draw please?

Part transfers are allowed, if the providers involved will do it or not is variable.
If the ISA you are transferring from contains any new money added this tax year, all this has to be transferred. Again the provider may take the view it is too much faffing about for them to split up new and old money, and just say the transfer has to be 100% or not at all. 

Thanks

I will pop into bank tomorrow

I might just transfer the full £85k
And hope that they don't go busy on the day the interest is paid into the account in a year's time taking me over the safe limit 

etienneg

DoneWorking said:

And yes

Part transfers are allowed but need to be done at branch or by phone 

Recently a part transfer to Coventry was completed for me, which I arranged entirely online. Why do you think it has to be done at branch or by phone?

Bigwheels1111

DoneWorking said:

Albermarle said:

ashby6567 said:

DoneWorking said:

I currently have £85k in a standard cash
ISA with Coventry on 1.85%

I have opened a new one year fixed ISA with Coventry at 3.95%
I still have £20k to invest in an ISA for this year

Making a total of £105000 in total 
I'm thinking of doing following

Transfer £52500 into the new ISA from my current ISA 

Open another ISA in December with another Bank when interest rates get even higher

Or just transfer the £85k into my new ISA

And open a new ISA with
£20 k in Dec

I may be wrong, are part transfers allowed? I'm under the impression that the whole ISA would have to be transferred. 

Good to know that the interest rates will be even higher in December. Do you have the jackpot numbers for the next Euro Millions Lotto draw please?

Part transfers are allowed, if the providers involved will do it or not is variable.
If the ISA you are transferring from contains any new money added this tax year, all this has to be transferred. Again the provider may take the view it is too much faffing about for them to split up new and old money, and just say the transfer has to be 100% or not at all. 

Thanks

I will pop into bank tomorrow

I might just transfer the full £85k
And hope that they don't go busy on the day the interest is paid into the account in a year's time taking me over the safe limit 

Not a bad plan, but.
If you only put 80k into the account, 4% interest would make it 83.2k after a year. So you would not lose out
If the bank fails midway through the year and you had 85k in the account you would lose the interest.

DoneWorking

I realise that 
Was just setting it as an option

There is risk but it's unlikely