Transfer Cash ISAs Discussion Area

Bri1

Archi_Bald wrote: »

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

Yes, but there's a maximum balance usually for the best interest rate with nothing or very little above it, hence split over multiple accounts with different providers

jimjames

Bri1 wrote: »

Yes, but there's a maximum balance usually for the best interest rate with nothing or very little above it, hence split over multiple accounts with different providers

£50k is the total using all the different accounts at their maximum balance, not the balance in a single account.

academiclady

Hello,

I have just started to look at my savings properly and been horrified by the low interest I am getting compared to what I have since discovered is possible, so would appreciate some advice before I go any further.

I have an Instant Access ISA and an Instant ISA 2, both with the Nationwide; currently I am only paying into the first account. There's not a huge amount in the accounts but this money is meant to help towards my retirement. I have no immediate need for it that I can envisage but would like to keep some in an Instant Access fund just in case of emergencies. I am happy for both ISAs to go into one "pot" if this is feasible.

I have 2 questions:
1-Are ISA fixed rate accounts a better/safer way to invest than fixed rate bonds for longer term investments?
2-Can I split my existing ISAs easily between an Instant Access and a longer term account with a new financial provider?

Please give me the idiot's guide in any replies.

Thanks in anticipation of some guidance.

boobbby

academiclady wrote: »

Hello,

I have just started to look at my savings properly and been horrified by the low interest I am getting compared to what I have since discovered is possible, so would appreciate some advice before I go any further.

I have an Instant Access ISA and an Instant ISA 2, both with the Nationwide; currently I am only paying into the first account. There's not a huge amount in the accounts but this money is meant to help towards my retirement. I have no immediate need for it that I can envisage but would like to keep some in an Instant Access fund just in case of emergencies. I am happy for both ISAs to go into one "pot" if this is feasible.

I have 2 questions:
1-Are ISA fixed rate accounts a better/safer way to invest than fixed rate bonds for longer term investments?
2-Can I split my existing ISAs easily between an Instant Access and a longer term account with a new financial provider?

Please give me the idiot's guide in any replies.

Thanks in anticipation of some guidance.

Very difficult to give good advise as we don't know your circumstances .

ISA's interest are all rubbish at the moment so for emergency instant cash move money into a current account like TSB and get 5% interest.(max £4000 over two accounts)

For the longer term you may as well go for the pensioner bonds (4% over 3 years) if your over 65 or use other current accounts paying 3-4% which will cover you for longer term savings and give your instant cash if needed.

Archi_Bald

academiclady wrote: »

I have an Instant Access ISA and an Instant ISA 2, both with the Nationwide

how much is in them? How much are you planning to put in in future?

academiclady wrote: »

this money is meant to help towards my retirement.

how many years until you retire?

What taxband are you in?

What pension arrangements do you have?

academiclady

Thanks.

I am 58, cant retire until I'm 66, on the lowest tax band and part of a company final salary pension scheme.

I pay £100 monthly into my Instant Access ISA but nothing into my Instant ISA 2, as that was transferred to Nationwide having formerly been a longer term bond with a different building society. As of July last year, my Instant Access ISA was worth £19,068.26 and my Instant ISA 2 £1,673.72.

As I said, not talking about a huge amount of money, and I can (in theory anyway), lock some of it away (thinking about £10,000) into a fixed term bond if I can get a better rate of return. Just would like to know the best and simplest way forward please

colsten

You would get quite a bit more interest, even after tax, if you spread you money round some of the interest paying current accounts (TSB, Nationwide, Tesco, Santander, BOS etc)

Also consider Regular Savings accounts, such as the 6% one offered by M&S, for your regular savings

As and if cash ISA interest rates will ever improve again, you could get most of your money back into an ISA in a single tax year, and the rest in the next.

alahol2

The simplest single thing you can do to probably double the interest you are getting is to open a Santander 123 current account. You don't have to swap your whole banking to it if you don't want to. If you don't swap your banking to it then you will need to at least swap 2 direct debits to it (they can be once a year DD's if you like) and to pay in £500 per month. Easiest way is to set up a standing order from your main current account to Santander and then set up a standing order on Santander to transfer the money back to your main current account 2 or 3 days later (the couple of days difference is to mitigate for possible delays over the weekend etc.). Transfer all the cash from the Instant Access ISA to the Santander 123 account. You will then be getting 3% Gross interest (2.4% Net) on the whole £19000. The maximum they will pay interest on is £20000 so don't let the balance go much above this.
If you can get the Santander account going then there are others, as Colsten says, that will pay more interest but on a smaller overall value but you need to go through the same sort of rigmarole with Direct Debits and transfers.
It is worth it for the interest on £20,000.
Good luck.

Stevie01

Dear all,

With the financially astute community on here I strongly suspect this question has come up somewhere before. If that is indeed the case I apologise for going over old ground.

My understanding is the govt limit on savings protection per person is £85 000 per banking institution. Can anyone advise the recommended advice with regard to ISAs? At some point for people this limit will be exceeded by the value of the money in their ISA.

Any help appreciated.

jimjames

I don't think anyone would be at that yet with totals allowed but with another £15k it could happen soon if you put everything in cash and with the same bank.

In that case move some to a different bank to keep below the limit. Whether it's advisable to have so much cash and none in S&S ISAs is another matter but would be another way to stay below cash limit.