Question about transferring 07/08 ISA and getting new 08/09 ISA

Jacko371

I currently have a Barclays 07/08 ISA with £2,456 in, as the rate will drop to 4.26% next month I would like to change it to get a better rate.

I have a standing order that transfers £300 into my ISA on the 2nd of the month so I will just get another £300 in before the cut off date of 6th April.

If I apply for a A&L ISA (6.25%) to transfer this years money into now it would transfer the money after the 6th of April therefore I will have £2,700-odd transferred across, is that correct? Also what will happen about Aprils interest, will it still be credited?

How long is the transfer process usually, would I lose out on much interest in the time it takes to transfer from Barclays to A&L?

As Barclays seem to have to best rate ISA again this year, is it alright for me to get another one with them for the upcoming year?

Cheers

10_66

Interest is added up to when the account is closed, and will be added to the capital amount that is being transferred. Some ISA providers will open your new account effective from the date of the cheque from the old provider or the day after the cheque. However, not all do so, and will only open your account effective from when they receive the transfer cheque from the old provider (and you may not earn interest for another day or after that). It all depends on who you transfer to, you’d need to check with them.

It’s difficult to say how long transfers take, again, it all depends on who you move to. Theoretically, the old provider has up to 30 days to deal with the transfer, but it might take less or more time than that.

Barclays have the best variable rate @ 6.50%, but some feel that is might be more prudent to go with a fixed rate as rates are very likely to go down (as you’re probably aware, you can’t transfer existing ISA’s into the Tax Haven). Nationwide has a 1 year fixed rate @ 6.15%. Fixed rate ISA’s usually have penalties if you want to withdraw within the term, whereas the variable are usually more flexible, with instant access.

wheresmydoshat

i am due to change my mini isa provider, and add to a new one in april.

so nationwide would be a good choice ?

wheresmydoshat

i would prefer to go fixed rate...

10_66

Nationwide's the best 1 and 2 year fixed @ 6.15%. Halifax have a 4 year fixed @ 6.20%.