ING ISA....keep or dump?

Bertram_Mottisfont

Tis my first post so please forgive me if this seems a daft question!

I am currently in the process of moving my savings from an ING web saver account to an ICICI HiSAVE account........all nice and clear.

I also have £3k in an ING ISA,the rate on which has dropped from 6.05% to 5.13% after the initial 6 months.
My question therefore is......should I leave the ISA intact or simply withdraw the funds and bung them in the HiSAVE account until April when I could reinvest in a more favourable ISA?

The tax free bit is fair enough,but combined with varying interest rates and a desire to tidy my finances I am somewhat at a loss as to what to do here!

Any wise answers would be much appreciated.....

Aegis

Don't remove money from an ISA unless it's to spend it. You can never get the tax-free allowance back for the year you deposited if you just close the account. Instead you should talk to a new provider and ask to transfer your current account funds into a new ISA without requiring you to use any more allowance.

That way next year you can put in more again and build up a bigger pot of untaxed savings.

Mikeyorks

Bertram_Mottisfont wrote: »

I also have £3k in an ING ISA,the rate on which has dropped from 6.05% to 5.13% after the initial 6 months.
My question therefore is......should I leave the ISA intact or simply withdraw the funds and bung them in the HiSAVE account until April when I could reinvest in a more favourable ISA?

If you withdraw the funds ... you lose that element of tax exempt status for ever. It's more normal to identify a more preferable ISA and then apply for that and complete a transfer form. Your new ISA provider then organises the transfer of the funds from ING.
That way you preserve the ability to add a further £3.6k into your new ISA from 6th Apr 08.

(Sorry Aegis ..... key slower than you?)

Bertram_Mottisfont

:T Cheers chaps,all is beginning to make sense now!

I just need to find a provider who can offer a hassle free transfer for this years funds...........any recommendations welcome of course as some folk seem to not offer this facility?

Jonbvn

Bertram_Mottisfont wrote: »

:T Cheers chaps,all is beginning to make sense now!

I just need to find a provider who can offer a hassle free transfer for this years funds...........any recommendations welcome of course as some folk seem to not offer this facility?

Get all the latest info on mini cash ISA's from Kazzaa's post here.

Kent Reliance seems to be the best a/c with no strings attached.

pbw

Bertram_Mottisfont wrote: »

:T Cheers chaps,all is beginning to make sense now!

I just need to find a provider who can offer a hassle free transfer for this years funds...........any recommendations welcome of course as some folk seem to not offer this facility?

i have an isa wit ING and the 6 month bonus period has ended and it is currently on 5.13% (very poor).

i hav just instructed halifax to transfer my ISA from ING to their 6.50% 4 year fixed ISA. best rate at the moment if you don't mind having it fixed!

Primrose

Icesave are moving into the ISA market from tomorrow paying 6.1% for balances over £1000 and will accept transfers in from other providers. Just imagine the gloom on the faces at ING when they receive yet another ISA transfer form requesting arriving on their desks moving money to the rivals who have already pinched so much of their business !! But be sure NOT TO WITHDRAW your ING Isa but move it via a TRANSFER form, (either available from ING or the new provider, otherwise your money will lose its tax free status.

Bertram_Mottisfont

:beer: All Halifaxed up now.......just hope the rate holds while the paperwork is processed!

I had to do the application at a branch,but it only took around half an hour to open the account and apply for the transfer......no bother at all really.

yaff

Hi all, I am seeking some advice as a new saver in the ISA field and this seemed like a good thread to try and post.

I have just applied for the ING cash ISA, as the rate seems good at 6.5%. My question lies with the time when i want to transfer out after the first six months is over. This will move into the next financial year and be a few months in, when it comes to transfer to another provider how is the interest worked out? Do ING transfer my money plus 4 months intersest at 6.5% and then the new provider apply their rate onwards?

I was just wondering if this all happened smoothly as I wasnt sure if interest was paid annually or monthly. Please forgive my ignorance if this is an obvious question and answer. Can anyone help a novice? Many thanks

SirSaveALot_2

yaff wrote: »

Hi all, I am seeking some advice as a new saver in the ISA field and this seemed like a good thread to try and post.

I have just applied for the ING cash ISA, as the rate seems good at 6.5%. My question lies with the time when i want to transfer out after the first six months is over. This will move into the next financial year and be a few months in, when it comes to transfer to another provider how is the interest worked out? Do ING transfer my money plus 4 months intersest at 6.5% and then the new provider apply their rate onwards?

I was just wondering if this all happened smoothly as I wasnt sure if interest was paid annually or monthly. Please forgive my ignorance if this is an obvious question and answer. Can anyone help a novice? Many thanks

Hi

Yes, you're correct in that. Although interest is paid annually (sometimes monthly) it's calculated on a daily basis, so you'll get paid interest on the exact amount of time you had the money in.

When you close and transfer, the interest due at that point will be added. There will be a short period with no interest while the money is in transit Then you will start to earn interest at the new provider on a daily basis from when it arrives in the account.

Hope this helps
SirSaveALot

yaff

Thanks Sir, appreciate your help