Best Option for One Year Fixed ISAs

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
«1

Replies

  • Bigwheels1111Bigwheels1111 Forumite
    1.1K Posts
    1,000 Posts First Anniversary Name Dropper
    Forumite
    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.

  • Band7Band7 Forumite
    1.1K Posts
    1,000 Posts Name Dropper
    Forumite

     
    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
  • Bigwheels1111Bigwheels1111 Forumite
    1.1K Posts
    1,000 Posts First Anniversary Name Dropper
    Forumite
    Band7 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.
  • AlbermarleAlbermarle Forumite
    15.5K Posts
    10,000 Posts Fourth Anniversary Name Dropper
    Forumite
    ashby6567 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. 
  • GamblerGambler Forumite
    3.2K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    Forumite
    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.
  • DoneWorkingDoneWorking Forumite
    250 Posts
    100 Posts Name Dropper First Anniversary
    Forumite
    ashby6567 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 
  • DoneWorkingDoneWorking Forumite
    250 Posts
    100 Posts Name Dropper First Anniversary
    Forumite
    ashby6567 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 
  • etiennegetienneg Forumite
    392 Posts
    Ninth Anniversary 100 Posts
    Forumite

    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?

  • Bigwheels1111Bigwheels1111 Forumite
    1.1K Posts
    1,000 Posts First Anniversary Name Dropper
    Forumite
    ashby6567 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.
  • DoneWorkingDoneWorking Forumite
    250 Posts
    100 Posts Name Dropper First Anniversary
    Forumite
    I realise that 
    Was just setting it as an option
    There is risk but it's unlikely
Sign In or Register to comment.
Latest MSE News and Guides

Boost your Nectar points

Get up to £25 this Saturday

MSE News

Preparing for summer

What MoneySaving things can you do now to get ready?

MSE Forum

Hot Diamonds 40% off code

Including already-reduced outlet stock

MSE Deals