Question about ISA???

lucylouwoo

I have already got an ISA with Halifax but it hasn't got a very good interest rate, I also haven't used my £3000 for the year, I am wondering if i closed my halifax account and used the balance to open another account would that be classed as using my allowence for the year( i only have £3000 in it) or would I still be able to put in another £3000????

Also does anyone know what the best account would be as I want something with decent interest that I would be able to draw my money out of when it's needed???

Many thanks guys!!!!!!

Johnhowell

Lucy,

I think if you transfer between ISAs account and the existing capital was paid in during a previous tax period then it (and any interest earned) does not count towards this tax periods' allowance. So you would be able to put in another £3000 for this tax year.

Regards,
John

maypole

lucylouwoo wrote: »

I have already got an ISA with Halifax but it hasn't got a very good interest rate, I also haven't used my £3000 for the year, I am wondering if i closed my halifax account and used the balance to open another account would that be classed as using my allowence for the year( i only have £3000 in it) or would I still be able to put in another £3000????

Also does anyone know what the best account would be as I want something with decent interest that I would be able to draw my money out of when it's needed???

Many thanks guys!!!!!!

NEVER withdraw it or you lose the tax free status on that amount. Always transfer it and if you haven't used up this years allowance I would get an isa for this year then another one for thre new tax year in April.

maypole

lucylouwoo wrote: »

I have already got an ISA with Halifax but it hasn't got a very good interest rate, I also haven't used my £3000 for the year, I am wondering if i closed my halifax account and used the balance to open another account would that be classed as using my allowence for the year( i only have £3000 in it) or would I still be able to put in another £3000????

Also does anyone know what the best account would be as I want something with decent interest that I would be able to draw my money out of when it's needed???

Many thanks guys!!!!!!

NEVER withdraw it or you lose the tax free status on that amount. Always transfer it and if you haven't used up this years allowance I would get an isa for this year too, then another one for the new tax year in April.

Limes

I agree with Maypole. Always open up your next ISA first and follow the new provider's instructions if you intend to transfer any ISA deposits in - assuming the account lets you.

Crabman

Hi Lucy - you asked about the best interest account, check out the Top Cash ISA & Cash ISA Transfer articles for the best-buy accounts for placing new cash into an ISA and transferring your existing Halifax ISA respectively.

I'll move this to the ISAs board

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]!!!!!![/EMAIL].