Transfer Cash ISAs Discussion Area

Bogbean

Many thanks for such a quick reply!

OwlTurbot

Apologies for (I expect) asking something that has probably already been asked, but I find these matters incredibly confusing and I couldn't quite work out if the exact question had already been answered!

Basically, I set up my first ISA with WestBrom a year ago and have been putting a small amount in every month by direct debit. I haven't reached my maximum allowance for the year, but the introductory interest rate is going to expire in the next few days.

If I transfer the ISA now into a new provider, can I still add money into this year's allowance up until April, or do I have to wait until after April 5th to start adding new money again? Thanks for any info.

10_66

OwlTurbot wrote: »

...If I transfer the ISA now into a new provider, can I still add money into this year's allowance up until April, or do I have to wait until after April 5th to start adding new money again?...

As long as you keep this year's subscription all together, you can transfer it and still add the remaining balance (as long as the terms and conditions of the new ISA to which you transfer permit additions i.e., most fixed rate accounts don't allow additions to be made).

OwlTurbot

Thank you, I'll look into that. If I did want to go for a fixed-rate account, then I assume it could be beneficial to stick with the current ISA for another month in order to add more money, before transferring at the beginning of April.

10_66

OwlTurbot wrote: »

Thank you, I'll look into that. If I did want to go for a fixed-rate account, then I assume it could be beneficial to stick with the current ISA for another month in order to add more money, before transferring at the beginning of April.

I suppose it depends on what's on offer now, and what'll be on offer in April. Trouble is, unfortunately, we don't know what'll be coming along.

ejv

OwlTurbot wrote: »

Basically, I set up my first ISA with WestBrom a year ago and have been putting a small amount in every month by direct debit. I haven't reached my maximum allowance for the year, but the introductory interest rate is going to expire in the next few days.

Hi Owlturbot,
I had the same WestBrom ISA whose bonus rate ends and changes to standard variable on 29th Feb.Went to Natwest today as they give very good fixed rates for transfers from other banks(except RBS).
I chose 3 yr fixed for 4.2%.
The manager was helpful.This Natwest rate offer expires on 29th Feb as well.He said they would still honor the rate even if the transfer from WestBrom takes longer(usually 10-12 days)
Or you may wait another month and see any better rates come up for next financial year.(4.2% was quite tempting for me)

blueberrypie

Stucoupe wrote: »

Oddly Ive been told ive paid in £300 into my isa this year. I wouldn't have done this,and its most likely its the bank paying me the interest late, as they made a mistake.

Interest payments into an ISA don't count towards your annual ISA allowance. Only new funds deposited by you do. You should go back and ask about this £300. Is it possible that you accidentally deposited it into the ISA after April 5th 2011?

Can I therefore still make best use of my £5k allowance this year? Should I be putting that £5k into my current isa today?

If you haven't paid anything into an ISA this year, you still have your full £5340 allowance. And yes, you should be putting it into an ISA, as long as you can earn more interest in the ISA than the savings account. The Vantage account will be paying 3%, but that's taxable, so 2.4% if you're a basic rate taxpayer. It isn't hard to beat that in an ISA.

If it turns out that the £300 above was indeed a deposit and you have accidentally subscribed to that ISA for this year, you can either top it up by £5040 (and then transfer the whole lot elsewhere if you want) or transfer the £300 elsewhere and then top up.

Then come the new F year, I can transfer all of my isa into a new isa; like M&S.

Yes, and the transfer doesn't count towards your ISA allowance for 2012-13.

That leaves £10k earning very little (but I can pass half of that 10k into that new isa?). You'd put the remainder into a normal savings account? Yes I will need some spare cash for Car insurance, holiday etc.

Yes. Look for the best instant access savings account you can find.

At the end of the day I am losing money in the short term, while rates are low and inflation is higher that it. But I presume rates could inflate; or I should really look to invest properly, like a house.

House prices aren't increasing at 3% per year either - until house prices are rising at a greater rate than the %age you can earn on savings, you shouldn't look on buying a house as an investment. There might be other reasons to buy a house, of course - but as an investment, maybe not right now.

OwlTurbot

ejv wrote: »

Hi Owlturbot,
I had the same WestBrom ISA whose bonus rate ends and changes to standard variable on 29th Feb.Went to Natwest today as they give very good fixed rates for transfers from other banks(except RBS).
I chose 3 yr fixed for 4.2%.
The manager was helpful.This Natwest rate offer expires on 29th Feb as well.He said they would still honor the rate even if the transfer from WestBrom takes longer(usually 10-12 days)
Or you may wait another month and see any better rates come up for next financial year.(4.2% was quite tempting for me)

Thanks for that. There are some good deals out there, but I need to decide whether I can lock my cash up into a fixed-rate account or not. Plenty to think about...

rhyski

I have a question regarding "variable rate" cash isas - such as the M&S cash ISA at 3% AER; (the best buy isa for transfers shown here: http://www.moneysavingexpert.com/savings/cash-isa-transfers )

As the rate is variable, does this mean that the rate could change at any point for better or worse - and so technically could potentially plummet to a very low rate soon after opening?

If this is the case, is it 'safer' to choose an isa with a non-variable or guaranteed rate which will ensure a certain percentage (albiet slightly lower) for a year? - such as the Virgin cash ISA at 2.85% AER?

ejv

rhyspaulburton wrote: »

I have a question regarding "variable rate" cash isas - such as the M&S cash ISA at 3% AER;

As the rate is variable, does this mean that the rate could change at any point for better or worse - and so technically could potentially plummet to a very low rate soon after opening?

Wouldn't this be 2.5% above BOE base rate? Then the lowest it could plummet is to 2.5% if BOE becomes 0.00

Hope other money stalwarts of the forum will post soon