Transfer Cash ISAs Discussion Area

afmfifgh

Thanks for the reply, yes I realise that providers have their historical rates but that isn't really practical in order to find what was the best buy rates as I would have to do an entire market comparison.

It isn't for a project etc, I just need to find a new account but don't know if say the current 2.02% on a 2 year fix is really that good.

For example, has a provider just last week pulled an account at 2.5% (wishful thinking) and the week before that has one been pulled at 2.45%.

That would then tell me that perhaps it may be worth waiting a few weeks before sending my application form off for the 2.02% one as that rate although currently is the best buy is actually a poor best buy and there is a good chance another provider will be along shortly with a higher rate more in line with recent best buys.

So it allows comparisons as to how much of a best buy the current rates are to recent historical rates.

Hopefully that makes sense :-s

radiohelen

Confused in the Midlands here!


I've got an ISA that needs transferring - it's only about £7000 but it's on a pitiful rate (I realise they are all pitiful at the moment!). I thought if I transferred the money into an ISA that accepts transfers (Sainsburys) I could then open a separate one somewhere else for this year's money. I called Sainsburys Bank to ask if this was true and the chap there said I could not subscribe to another ISA as by transferring my money into the Sainsburys ISA I would have to open the ISA first and therefore use up my one subscription to an ISA this year. Is he right? From now on do I always have to have one that accepts transfers in if I want to get a better rate on old accounts but never get the advantage of new money only accounts? Help!

jimjames

radiohelen wrote: »

Confused in the Midlands here!


I've got an ISA that needs transferring - it's only about £7000 but it's on a pitiful rate (I realise they are all pitiful at the moment!). I thought if I transferred the money into an ISA that accepts transfers (Sainsburys) I could then open a separate one somewhere else for this year's money. I called Sainsburys Bank to ask if this was true and the chap there said I could not subscribe to another ISA as by transferring my money into the Sainsburys ISA I would have to open the ISA first and therefore use up my one subscription to an ISA this year. Is he right? From now on do I always have to have one that accepts transfers in if I want to get a better rate on old accounts but never get the advantage of new money only accounts? Help!

No, he isn't correct.

ISA transfers do not impact on the amount you can pay in for the current year.

However for £7000 are you aware that you can get far higher rates with current accounts?

badger09

jimjames wrote: »

No, he isn't correct.

ISA transfers do not impact on the amount you can pay in for the current year.

However for £7000 are you aware that you can get far higher rates with current accounts?

Just over 2 hours. That's more like it jj :T

apoonia86

Hi all.

I have about £16k sat in an isa. the bonus rate has just expired and the rate is now 0.5%.

I am thinking of transferring to the p/o at 1.55%. I don't want to tie the cash up as it will be forming part of my deposit for a house next year.

Any tips/advice on what to do? I mean i know that certain current accounts have much better interest rates, but I have always though that it isn't a good idea to withdraw your isa as you lose the tax breaks associated with it.

Many thanks in advance for your help

alahol2

The tax break is worth nothing if it's losing you money. If you can spend an hour or so setting it up, put it into a Santander 123 account and get 3% gross (2.4% Net) (minus £24 charges per annum). No need to transfer all your banking to that account, just arrange a standing order for £500 each month and a couple of direct debits (which can be once a year debits if you have any). You can put £15000 into an ISA every year so you could get back the tax break virtually within one tax year if you need to.


Good luck

apoonia86

alahol2 wrote: »

The tax break is worth nothing if it's losing you money. If you can spend an hour or so setting it up, put it into a Santander 123 account and get 3% gross (2.4% Net) (minus £24 charges per annum). No need to transfer all your banking to that account, just arrange a standing order for £500 each month and a couple of direct debits (which can be once a year debits if you have any). You can put £15000 into an ISA every year so you could get back the tax break virtually within one tax year if you need to.


Good luck

True. I am currently subscribing to an isa for this year... i may sit down and work out the interest gained on the best buy current accounts and compare to the P/O account. already have the 123 credit card so may qualify for the 123 current account fee free. surely there are more better interest paying current accounts than 3% gross though

Archi_Bald

apoonia86 wrote: »

surely there are more better interest paying current accounts than 3% gross though

Yes there are but you can't accommodate £16K in them unless some of them are joint accounts. £9,500 is the max in sole accounts.

But even at 3%, current account are way better places for £16K than a cash ISA if you want to spend the money in the next year or so.

Bri1

Savings accounts rates are utter rubbish & a waste of time at the moment, I have been using multiple current accounts paying between 4 & 6% as I'm a non tax payer I R85 them to get full rate, you can put in between £2,000 & £25,000 in various accounts, all can be easily opened & operated online with no access restrictions to the money

Archi_Bald

Bri1 wrote: »

you can put in between £2,000 & £25,000 in various accounts, all can be easily opened & operated online with no access restrictions to the money

It's actually up to £50,000 for sole accounts, and a lot more if you can do joint accounts.