New ISA

madlyn

I currently have just over 4k in a nationwide ISA paying 1.30% interest.
I'm thinking of moving maybe 3k of that to another ISA paying a better interest rate and Ideally one where I can make deposits if I want to.
I already have a S&S ISA that I pay into each month and 3 regular savings accounts.
Does the sort of ISA I'm looking for exist?

Band7

The first question you should answer to yourself is: do I need a cash ISA at all?

If the answer is yes, then check the best deals on https://moneyfactscompare.co.uk/isa/

In any case, you should move your £4k somewhere else as quickly as possible as 1.3% is a dreadful interest rate.

fabsaver

If you might need access to the money there is the Nationwide 1 Year Triple Access Online ISA at 3%
https://www.nationwide.co.uk/savings/triple-access-online-isa/
Not the best rate but a lot better than what you are receiving currently. It might be useful for the £1k you were planning to leave in the 1.3% account.

If you are unlikely to need access then fixed term ISAs offer higher rates but most do not allow further deposits beyond specific times set out in their terms. I recently discovered that Kent Reliance fixed rate ISAs do allow you to add further deposits anytime (although transfers in are restricted to 30 days).

Currently 4.2% for their 2 year fix.
https://www.kentreliance.co.uk/isas/two-year-fixed-rate-cash-isa
The page linked above states "top up anytime within ISA limits".

madlyn

fabsaver said:

If you might need access to the money there is the Nationwide 1 Year Triple Access Online ISA at 3%
https://www.nationwide.co.uk/savings/triple-access-online-isa/
Not the best rate but a lot better than what you are receiving currently. It might be useful for the £1k you were planning to leave in the 1.3% account.

If you are unlikely to need access then fixed term ISAs offer higher rates but most do not allow further deposits beyond specific times set out in their terms. I recently discovered that Kent Reliance fixed rate ISAs do allow you to add further deposits anytime (although transfers in are restricted to 30 days).

Currently 4.25% for their 2 year fix.
https://www.kentreliance.co.uk/isas/two-year-fixed-rate-cash-isa
The page linked above states "top up anytime within ISA limits".

Did you transfer funds from an ISA you already had? if so did this go smoothly? 
Would there be an issue with me only transferring only part of the funds in my current ISA?

jimjames

madlyn said:

I currently have just over 4k in a nationwide ISA paying 1.30% interest.
I'm thinking of moving maybe 3k of that to another ISA paying a better interest rate

Why only move £3k when you can get 3.55% on the whole amount with instant access? There's no reason to have an ISA at all with such a low rate.

Rheumatoid

fabsaver 

Currently 4.25% for their 2 year fix.
https://www.kentreliance.co.uk/isas/two-year-fixed-rate-cash-isa
The page linked above states "top up anytime within ISA limits".

Seems to be 4.2% now

fabsaver

madlyn said:

fabsaver said:

If you might need access to the money there is the Nationwide 1 Year Triple Access Online ISA at 3%
https://www.nationwide.co.uk/savings/triple-access-online-isa/
Not the best rate but a lot better than what you are receiving currently. It might be useful for the £1k you were planning to leave in the 1.3% account.

If you are unlikely to need access then fixed term ISAs offer higher rates but most do not allow further deposits beyond specific times set out in their terms. I recently discovered that Kent Reliance fixed rate ISAs do allow you to add further deposits anytime (although transfers in are restricted to 30 days).

Currently 4.25% for their 2 year fix.
https://www.kentreliance.co.uk/isas/two-year-fixed-rate-cash-isa
The page linked above states "top up anytime within ISA limits".

Did you transfer funds from an ISA you already had? if so did this go smoothly? 
Would there be an issue with me only transferring only part of the funds in my current ISA?

I did a partial transfer to KR from a S&S ISA and it went smoothly. I believe others had some issues late last year, there was a discussion about it on here https://forums.moneysavingexpert.com/discussion/6403725/kent-reliance-are-they-really-this-bad/p1

fabsaver

Rheumatoid said:

fabsaver 

Currently 4.25% for their 2 year fix.
https://www.kentreliance.co.uk/isas/two-year-fixed-rate-cash-isa
The page linked above states "top up anytime within ISA limits".

Seems to be 4.2% now

Oops I think I mistyped (as I was looking at another ISA at the time paying 4.25%).  You are correct that the rate is 4.2%

madlyn

jimjames said:

madlyn said:

I currently have just over 4k in a nationwide ISA paying 1.30% interest.
I'm thinking of moving maybe 3k of that to another ISA paying a better interest rate

Why only move £3k when you can get 3.55% on the whole amount with instant access? There's no reason to have an ISA at all with such a low rate.

I want to keep some back in case I need to get my hands on the cash quickly, unexpected car or household repairs.

eskbanker

madlyn said:

jimjames said:

madlyn said:

I currently have just over 4k in a nationwide ISA paying 1.30% interest.
I'm thinking of moving maybe 3k of that to another ISA paying a better interest rate

Why only move £3k when you can get 3.55% on the whole amount with instant access? There's no reason to have an ISA at all with such a low rate.

I want to keep some back in case I need to get my hands on the cash quickly, unexpected car or household repairs.

...and hence @jimjames suggesting an account with instant access!  The fundamental point is that a small pot of £4K doesn't really benefit from being within the ISA wrapper, as there's no realistic prospect of paying tax on the interest, so if there are better rates available outside that wrapper then they'd be worth considering.

Beddie

My suggestion: open one of the accounts in the link below - you will have easy access to the money and a better rate too. Move all of it.

https://moneyfactscompare.co.uk/savings-accounts/easy-access-savings-accounts/?quick-links-first=false