New ISA advice please

Sunshine_and_Roses

I have only started using ISAs this calendar year, funded a 1 year fix with Virgin in January at 4.25% with max amount. 
I have not opened one this text year yet, as I am waiting for a couple of one year fix savings accounts to mature.  One is at the end of next month and another in November.  I have £20k in each so will use one for myself and one for husband to fund in full. 
I have been reading about opening Virgin accounts and switching within 14 days if better rates become available.  Is it better to open now with a small amount then switch if necessary, or wait until the first fix matures? 
I am happy to fix for a year again, as I can always use the ISA maturing in January as instant access on maturity, and have PB in emergencies. 
Thanks for any advice. 

masonic

Most fixed ISAs have a limited window where they will accept deposits/transfers, so it is generally best to open one when you are ready to fund it.

Doctor_Who

From the Virgin website. You only have 30 days to fund the 1 year fixed rate ISA from the opening date.

• To ensure money is accepted into your new account we must receive all money within 30 days from your account opening date. Any deposits received after 30 days may be returned to you. Therefore if you wish to add to your ISA every tax year this product will not be suitable. Fixed Rate Cash ISAs are not suitable for regular deposits.

https://uk.virginmoney.com/savings/products/1_year_fixed_rate_cash_e_isa_issue_606/#how-do-i-open-and-manage-my-account

Bigwheels1111

The Virgin ISA shuffle works very well.

Take out the ISA, from the day you fund it you will have a 14 day cooling off period.

Virgin release a new rate say on day 10.

Login, next my account.

Scroll down select new savings,

Select the new ISA with the higher rate or term. Works both ways.

Tick a few boxes, fund from old ISA.

Your done 14 day cooling period starts again with your new account.

I started at 3y 5.2%, switched to 5.5% and yesterday to 5.55%.

Rates should rise within 2 weeks, just before boe base rate rise.

So will switch again, If they dont I might switch to a 2y ISA and extend the cooling off period again.

matt_j

@Bigwheels1111, does the 60 days interest penalty (for the 1 year ISA) apply when transferring from a previous issue Virgin ISA to a new issue Virgin ISA within the 14 day cooling off period?



The T&Cs only mention writing to Virgin to close your account during the cooling off period. So it’s not clear. 

Bigwheels1111

matt_j said:

@Bigwheels1111, does the 60 days interest penalty (for the 1 year ISA) apply when transferring from a previous issue Virgin ISA to a new issue Virgin ISA within the 14 day cooling off period?



The T&Cs only mention writing to Virgin to close your account during the cooling off period. So it’s not clear. 

No, If you move Virgin to Virgin within the 14 days no penalty is paid.

Interest is added and new account is updated next day,ie 10k isa plus 10 days interest = £10011.36 will show in new isa.

matt_j

Thank you Big Wheels

In case anyone else is interested, you'll see the following during the application process for the new issue:

• There will be no charge for proceeding with this application as you are within your cooling off period.

DJSINGH

Bigwheels1111 said:

The Virgin ISA shuffle works very well.

Take out the ISA, from the day you fund it you will have a 14 day cooling off period.

Virgin release a new rate say on day 10.

Login, next my account.

Scroll down select new savings,

Select the new ISA with the higher rate or term. Works both ways.

Tick a few boxes, fund from old ISA.

Your done 14 day cooling period starts again with your new account.

I started at 3y 5.2%, switched to 5.5% and yesterday to 5.55%.

Rates should rise within 2 weeks, just before boe base rate rise.

So will switch again, If they dont I might switch to a 2y ISA and extend the cooling off period again.

Are you able to shuffle with the Easy Access Cash ISA? As only that and the 1yr fix now exist?

I was thinking something like below:

Open 1yr fix @5.71 (currently but hope it raises shortly now BOE decision)

10-13 days later shuffle to EA ISA

10-13 days later shuffle back to 1yr fix

10-13 day later shuffle to EA ISA

Shuffle to new virgin fix if better rate (assume BOE increase at next meeting)

Either way, no interest is lost if I understand because they dont take money if switching within virgin?

Sunshine_and_Roses

Update and more advice needed please...

I have opened a Virgin 1 Year Fixed ISA which was 5.71% but now increased to 5.76%.  I have not funded this yet as I have a fixed rate saver (non ISA) maturing at the end of the month so will fund this with full £20k.

I am looking at an account for DH but will probably fund over the next couple of months.  If I open an Virgin Easy Access Cash ISA at 4.25%, can I switch this to a Fixed Isa in a few months?  I am able to fund from our joint account up to about £10k, then put more in November when I have another saver maturing.  I could top that up to £20k then move to a fix - is that allowed?

Doctor_Who

Yes, you could put £10K in the EA ISA now, then add another £10K in November and then transfer the whole £20K (has to be transferred fully) to a new fixed rate ISA. There are a few fixed rate ISA providers that allow top ups throughout the fixed term (Shawbrook is often mentioned), but most have a relatively short funding window.