NS&I Direct ISA

funkey_monkey

Hi,

I've got roughly £20k in an NS&I direct ISA. The current rate on it (I think) is 5.05%.

Is this a good rate and/or should I be looking to move it?

I can't remember now why I was recommended the NS&I ISA.


Thanks.

Froglet

The rate is 5.80% which is reasonable but not brilliant.They were good when the rate went up as they put theirs up immediately but of course it works both ways when it comes down!! They guaranteed to be .55% over the bank rate,but from April i believe it is to be .30% above.I am with them but won't be putting any more in as there are better accounts out there and i would imagine in your case it would pay to transfer out.

BenL

I have the same ISA as you, had it 2 years maxxed out.

I personally am waiting at the moment to see if there are going to be any good deals coming out for the next tax year as the banks want savers money coming in.

At the moment though it will probbaly be Abbey or Barclays for me to switch from NS&I and for the new allowance.

trumint

I notice that Martin is recommending A&L for online ISA, I am keen to know your opinion on whether to retain my previous years ISA in NS&I, open a new account with Abbey/A&L next tax year or transfer all previous years stuff into the new account.
Also if I do that, will I be able to open new ISA account with NS&I again in the future? I know I can't transfer in to NS&I.

Thanks
Lip

earlgrey_3

You'd be able to open an ISA in another tax year with NS&I but, as you say, not tranfer in funds from another ISA - which is a little ironic for a government fund. If no one allowed transfers in like them then ISAs wouldn't be portable which was supposed to be the whole idea. :rolleyes:

I'll probably wait for the dust to settle and get an impression of which providers intend to maintain a decent rate rather than the usual end of tax-year gimmicks before I decide who to transfer current cash ISAs to. If I expect to gain 0.5% or so I'll transfer.

BenL

The downside with my plan at the moment is the speculated BoE interest rate reduction in the coming months.

Time for a fixed rate maybe