Move ISA to a Better Rate

AndyW79

Hi,

I finally started using an ISA this year and maxed it out. 

Now there is a better rate in another provider (Plum). Can I move my money to the new provider and will it be ok tax wise, or do I have to keep the old one?

Thanks,
Andy

friolento

If your ISA is easy access, you can ask Plum to transfer your ISA but make sure you are really happy with their T&Cs. No tax implications or charges, so long as the transfer is done by the receiving provider and your old ISA is easy access

Phoenix72

What do you mean by 'this year', this tax year or this calendar year?

Is it currently invested in a fixed rate account? What rate? Are there any penalties for transferring out before maturity? 

gravel_2

Plum don't offer their top rate on transfers. If you transfer money you are paid 4.29%.

refluxer

As above - what type of ISA do you have, what is the rate and who is it with ?

Be careful when looking at the top of the easy access cash ISA tables currently - the top 3 in particular (Plum, Moneybox and Chip) all have their own quirks and drawbacks which, between them, include a different interest rate for transferred funds, withdrawal restrictions, automated saving 'features' that you need to look into and (probably) disable and even a question-mark with at least one over whether your interest is actually FSCS protected.

Depending on what your current rate is, I would suggest that none of the above are worth transferring to for a small gain, considering the issues mentioned.

kiloton

Regarding the FSCS “question-mark with at least one over whether your interest is actually FSCS protected. If interest is paid daily to the account surely it is covered? I would imagine if the payout was at end of fixed term and something happened before then, that interest would not be covered?

friolento

kiloton said:

Regarding the FSCS “question-mark with at least one over whether your interest is actually FSCS protected. If interest is paid daily to the account surely it is covered? I would imagine if the payout was at end of fixed term and something happened before then, that interest would not be covered?

The Moneybox interest is not FSCS protected until is has actually been cedited to your account, which is at the 12 month account anniversary

refluxer

kiloton said:

Regarding the FSCS “question-mark with at least one over whether your interest is actually FSCS protected. If interest is paid daily to the account surely it is covered? I would imagine if the payout was at end of fixed term and something happened before then, that interest would not be covered?

As mentioned above, this issue has been discussed in relation to Moneybox and is unusual because interest due on a savings account from a bank covered by FSCS protection would normally be covered, even if it hadn't actually been paid.

AndyW79

Thanks for all the answers won't move anything and also thanks for the sahring of the trasnfer difference, wasnet aware at all obout that.