Cash ISA bonus switching

rallcock

Can I do multiple switches on my cash ISA account, taking the short-term bonus each time to chase the maximum return? 

So if I for example put £10k into a Moneybox cash ISA today and get 5.71% (4.2%+1.51% bonus for 3 months).  Then open another with Monument at 4.76% with £1k in 3 months time and do a transfer from Moneybox. Then repeat with whoever is offering the next high 3 month bonus cash ISA etc etc Do this as many times as time allows in the tax year.

This is just like people do with current accounts, but without affecting your credit rating.

I cant see why this couldnt be done, as there are now no limits on how many cash ISA accounts you can have.

Any comments??

MeteredOut

Yes, you can do that. Note that with some switches, you may lose 1 days interest whilst the switchover takes place. And some have rules about losing bonus interest if you do transfer (eg, Plum). Check the T&Cs for each.

There's no limit on how many cash ISAs you can have. The only legal limit is the £20K new money each tax year.

flaneurs_lobster

Absolutely fine in theory, although I'd suggest that finding these bonus deals in three months time might not be quite so easy (and would rely on you being a new customer) but anyways you'd just stay put.

And remember, the bonuses may be fixed for three months, the underlying rates are not.

cccfff

I like this idea my trade 212 going to put down rate, I was looking into this myself 

eskbanker

rallcock said:

So if I for example put £10k into a Moneybox cash ISA today and get 5.71% (4.2%+1.51% bonus for 3 months).

Just to be clear, the 1.51% is an annual rate, i.e. you'd only get a quarter of that for three months.