Transfer Cash ISAs Discussion Area

annie13_2

Can anyone recommend a good ISA to transfer about £12000 into please. Thanks.

Baldur

annie13 wrote: »

Can anyone recommend a good ISA to transfer about £12000 into please.

Easy Access? Fixed Rate?

See this post for the 'best buys' of various types - scroll down to see those which accept transfers.

welshguy_456

I have this years isa with barclays golden isa paying something like 2.58% and looking at the top payer with first direct im thinking of switching to them. This is pretty new to me, my 1st isa so is it that complicated to switch? Ive read as much on hear as i can but there is so much to take in.

Another thing, once you have invested your £3600 in the current years isa and the interested is added at the end of the year, the isa just closes so you can no longer pay money in? Then im guessing of course you all open new isa's with the new top payer and transfer the older isa's you all have to the top payer also? They continue to earn interest even though your over £3600 in balance? thanks in advance for taking the time to reply it must be very boring for those of you who know what your doing. Ive already learned a load from you guys.

Baldur

welshguy_456 wrote: »

I have this years isa with barclays golden isa paying something like 2.58% and looking at the top payer with first direct im thinking of switching to them. This is pretty new to me, my 1st isa so is it that complicated to switch? Ive read as much on hear as i can but there is so much to take in.

Select your new Cash ISA provider (one that accepts ISA transfers, as some do not), complete their ISA transfer form and let them arrange the transfer - hardly complicated.

Another thing, once you have invested your £3600 in the current years isa and the interested is added at the end of the year, the isa just closes so you can no longer pay money in?

Not necessarily. Some easy access accounts permit ongoing subscriptions (up to the annual allowance) - the declaration which you sign when making an application permits this, as it contains a provision to subscribe to the ISA in subsequent tax years (whether you choose to do so or not is up to you). If you go elsewhere for your subsequent tax year ISA, without transferring the original one, then you would have to reactivate it in order to subscribe too it again, after a complete tax year with no subscriptions.

They continue to earn interest even though your over £3600 in balance?

The annual Cash ISA limit only applies to new money going into an ISA account - not to any interest earned, which has an ongoing tax-free status, year after year, as long as the ISA scheme exists.

welshguy_456

Thanks for that baldur, that cleared abit up for me, so the interest just grows year on year and the key is to get the most out of these isa's is to transfer to the top payers?

Baldur

welshguy_456 wrote: »

Thanks for that baldur, that cleared abit up for me, so the interest just grows year on year and the key is to get the most out of these isa's is to transfer to the top payers?

That's what I tend to do but the choice is yours.

Those of us that have had Cash ISAs since the scheme started (plus their predecessor, the TOISA) and paid in the maximum allowance annually, probably have well in excess of £50,000 currently earning tax-free interest.

stillburning

Hi,
I'm new to the site but have found the information really useful, I wonder if anyone can help me with any advice about transferring our cash isas. I have a cash isa with £42,900 and my wife another with £38,200, in Nat West where our 2% bonus from last year is about to expire and we will go down to 1.75%.
I would like to transfer my wifes ISA into a fixed rate account for 2 - 3 years, and mine into an instant access (I will use £27,000 of it to pay off my mortgage next April when I will not have any penalty charges, current SVR with Nat West mortgages is 4%).
Having researched this morning the Principlaity looks the best for a 3 year fix at 4.2% and Abbey best for instant access at 3% (over £9000), if anyone has any other suggestions please let me know (we both under 50 (42 and 40)).
thanks
Simon

Baldur

See this post, the Abbey rate is variable (only the included bonus is fixed), whereas the First Direct eISA pays a fixed 3% until November 2010, while still being easy access - having had dealings with Abbey ISA transfers in the past, I know which one I would choose (hint, the name doesn't start with the letter 'A').

stillburning

Hi Baldur, I had looked at the First Direct eISA but somehow thought the Abbey account looked better so thank you very much for pointing out their rate is variable, I know which one I am going to go for now!
cheers
Simon

Baldur

stillburning wrote: »

Hi Baldur, I had looked at the First Direct eISA but somehow thought the Abbey account looked better so thank you very much for pointing out their rate is variable, I know which one I am going to go for now!

Having looked again at the Abbey product, I see that I was incorrectly recalling one of their previous 'Direct ISA' incarnations in my earlier post, where the bonus was fixed - in the current version, even the bonus is variable.

Rate on balances from £1 include a variable 1.5% AER tax free bonus payable for 12 months