Transfer Cash ISAs Discussion Area

travellerbazza

Hi everyone
ncbs.co.uk
national counties are giving 3.10 % with a 45 day notice
transfers allowed ,
this is the best I can find
anyone with any higher?

Bill_Johnston

Another question from a beginner. I put in the full £3600 for the first time last year. I now want to transfer this to get better interest. But most of the best offers say 'no transfer in' and Martin says, "Never, ever, ever, ever withdraw money from a cash ISA!
You'll immediately lose all the tax benefits." But what's the problem with my withdrawing my '£3600 and a bit of interest' from last year and starting a new ISA with it with one of the better offers rather than doing a transfer to a not-so-good offer?

I can't see the snag - so can anyone explain it - simply?

KTF

travellerbazza wrote: »

Hi everyone
ncbs.co.uk
national counties are giving 3.10 % with a 45 day notice
transfers allowed ,
this is the best I can find
anyone with any higher?

Full range of rates:

£3,000+ 2.00%
£5,000+ 2.50%
£10,000+ 2.60%
£15,000+ 2.70%
£20,000+ 2.80%
£35,000+ 3.10%

From: http://www.ncbs.co.uk/savings/savings/tax-free/45-Day-Notice-Cash-ISA.aspx

KTF

Bill_Johnston wrote: »

I can't see the snag - so can anyone explain it - simply?

See my post at the bottom of the previous page: http://forums.moneysavingexpert.com/showpost.html?p=31637903&postcount=1580

Inforapennyinforapound

Sorry to disagree,but my calculator tells me different.

I doubt that i was going to put another £5100 into a new isa.If i was then,yes, you are correct.

But earning 2% on £3000 and 3.2% 0n £2000 is less than earning 3.2% on £5000.

So as i say the rule is not strictly accurate but is excellent advice dependant on personal circumstances.

DUS

Bill,

If you take your 3600 out now and put it into a new ISA account, the 3600 will count towards your 2010/11 ISA allowance.

If you wanted to invest 1.700 of new, fresh capital into a cash ISA in the current tax year, you couldn´t do that since the maximum is 5.100 - 3.600 (the money you "transfered"), so leaving 1500 only to pay into the cash ISA this year.

If you don´t plan to invest more than 1.500 this year, then I would agree with you that there is no issue with actually withdrawing your money from last year´s ISA.

DUS

DUS

Inforapennyinforapound wrote: »

So as i say the rule is not strictly accurate but is excellent advice dependant on personal circumstances.

Agreed! :-)

Pmarmalade

Just signed up for an A&L 3.2% ISA. I took "no transfers" to mean no transfers in. Just making sure this doesn't apply transfers out next year?!

Inforapennyinforapound

Pmarmalade wrote: »

Just signed up for an A&L 3.2% ISA. I took "no transfers" to mean no transfers in. Just making sure this doesn't apply transfers out next year?!

I hope you're right.Ive just opened one of these as well!

KTF

Yes, its for new money only. There are no restrictions on transfers out, only transfers in.