Transfer Cash ISAs Discussion Area

munk

Henwen wrote: »

I've spotted a deal which looks better than the Alliance and Leicester ISA. A&L offers 6.25% but a) hasn't yet dropped after the last Bank of England cut and b) isn't a guaranteed rate although it includes a 1% bonus until 31 May 2009. Moneysupermarket lists Abbey Direct ISA (Issue 2) (tel and internet) as fixed 6.25% until May 2009 then 5.25/4.75% (rate as at 3 March 08). You can transfer old ISAs in too. Minimum investment is £1. Much better as you can relax till next year though there is a worrying reference in the T&Cs to changing the interest rate.....

Just give me a chance to open one before you all flood to Abbey!

As Baldur says, Abbey's cash ISA product is variable, not fixed:

The Direct ISA gives you a preferential variable rate of interest for 13 months from the date of opening.

Quote from: Direct ISA (issue 2)

For my money A&L is looking good right now pending some drop. Not sure whether to go for it now or wait a couple of weeks (might wait actually since my money for this year's ISA is currently in A&L's eSaver which is best to withdraw from at start of month).

Henwen

Sorry, thought it was too good to be true. Another option though if you already have money with A&L and don't want to put more than £35000 into any bank.

jellybaby1971

how do I decide if I should transfer my exsisting cash ISA with Abbey i have had this ISA account for about 3 years and have saved about £6000 I don't know what my current interest rate is

10_66

If you contact Abbey they will be able to tell you what the interest rate is on your existing ISA. Usually the interest rate isn't very competetive after a while, so you should check out how it compares with what other providers are offering, and if you think it's worth while, you might consider transferring to another provider who offers a better interest rate (you do this through the new provider, don't transfer the money yourself). Some providers don't permit transfers in, so it might be that you transfer your existing ISA to one provider, and open another ISA for this year's contribution with a different provider (you usually get a better rate with those that don't permit transfers in, but this isn't always the case). Links attached for best buy tables.

http://forums.moneysavingexpert.com/showthread.html?t=401374

http://www.moneyfacts.co.uk/savings/bestbuys/default.aspx

http://www.moneysupermarket.com/Savings/Default.asp?p=0

Grumps

I think :rolleyes: I have read through all of the (recent) replies on this thread but pne thing that I am unclear about is the postion with "transferred cash ISA's" inasmuch as do they attract the headline APR/AER? Including any bonus? Or are they subject to a lower rate of interest.

I'm currently looking at A&L but have ISA's from previous tax years with both Barclays and NS&I, which I would seek to transfer in.

And secondly, is there any evidence of providers 'dragging their feet' on Transfers until 'bonus offers'/rates, etc, have expired or been changed?

Thanks.

jamesd

If they let you transfer in you'll get the headline rate. It's not uncommon for high rate accounts to be for new money only, transfers not permitted.

amg2007

Hi,

Hopefully someone here can give me a quick sanity check that what I am doing is correct according to the rules...

I have ISAs from tax years 03/04, 04/05, 06/07 and 07/08. I have today opened (online) an A&L Direct ISA and when they send me the welcome pack, I intend to transfer all of the above monies to this new ISA.

In addition, I have just opened a Barclays Tax Haven ISA into which I have placed my 08/09 year subscription.

I believe this is okay as although I have opened two Cash ISAs, only ONE (the Barclays Tax Haven) is being subscribed with new money.

Am I correct?

Thanks,

Andy

Baldur

amg2007 wrote: »

Am I correct?

Yes you are.

King_Weasel

I believe there's a regulation that requires transfers to be effected within 30 days.

Is there a regulation that ensures interest is paid during all or part of the transfer period?
Or do we only rely on providers' own practices?

It's bad enough to have to wait before getting the higher interest rate from the new provider, but if there's a "gap" between the two providers when no interest is received the whole point of transferring could easily be destroyed.

HarveyK

I have 3 M&S + 1 NSI Cash ISA that I want to transfer to A&L Cash ISA.

The old ISA's have interested accumulated on them, so is the current total value transferred or only the original ISA cash investment?

I have looked around and I am sure the answer is obvious, but can someone let me know

Thanks

HarveyK