Transferring ISA providers - Barclays Tax beater 07/08

saver84_2

I invested £3000 in a Barclays Tax beater ISA last May and I was wondering what my best options are now? I realise that the introductory rate only lasts 12 months and so presumably I should in May 2008 try to find a provider with the best rates which accepts transfers in.

In addition I plan to invest £3600 in a new ISA next week. This may be a silly question - but does this need to be with the same provider I will transfer my existing ISA to in May? Is the new barclays offer (6.5% again) the current best for next year?

Many thanks in advance.

bristolleedsfan

saver84 wrote: »

I invested £3000 in a Barclays Tax beater ISA last May and I was wondering what my best options are now? I realise that the introductory rate only lasts 12 months and so presumably I should in May 2008 try to find a provider with the best rates which accepts transfers in.

In addition I plan to invest £3600 in a new ISA next week. This may be a silly question - but does this need to be with the same provider I will transfer my existing ISA to in May? Is the new barclays offer (6.5% again) the current best for next year?

Many thanks in advance.

In order to avoid being on a lower Barclays ISA rate during the transfer out period it is prudent to organise a transfer out of your Tax Beater ISA around a month before the 1% bonus is due to be made defunct.

Many of us have transferred out already;)

You can take out your 2008/09 ISA with anyone u desire including Barclays.

saver84_2

Ok thanks - I'll make arrangements to transfer out - the Direct ISA from Alliance & Leicester seems the be the top paying account that allows transfers in, and I will also apply for Barclays 6.5% for the new year. Very helpful.

bristolleedsfan

saver84 wrote: »

Ok thanks - I'll make arrangements to transfer out - the Direct ISA from Alliance & Leicester seems the be the top paying account that allows transfers in, and I will also apply for Barclays 6.5% for the new year. Very helpful.

U might like to ask A+L when they start paying interest on ISA transfer ins. ( if u do perhaps u could post the answer back on here, if they say when they get the money ask them is that when they receive the transfer cheque or after its banked)

Barclays Taxbeater is only paying an applied annual rate of 6.31% so the loss of interest by transferring out early is negligible.

( Quoted 6.50 A.E.R rate assumes that the interest that is paid monthly is added to the account so very little loss by transferring out so late in the 12 Month period)

Abbey also have a 6.25% variable rate ISA which allows transfers in with no loss of interest while the cheque is in transit and being banked. ( With both Abbey and A+L u would have to be prepared to transfer out again in 12/13 months time.)

TomsMom

bristolleedsfan wrote: »

In order to avoid being on a lower Barclays ISA rate during the transfer out period it is prudent to organise a transfer out of your Tax Beater ISA around a month before the 1% bonus is due to be made defunct.

Many of us have transferred out already;)

You can take out your 2008/09 ISA with anyone u desire including Barclays.

Hubby seems to think that to get the 1% bonus you have to leave your ISA for the full 12 months and if you transfer out earlier then you don't get the bonus. Is he right BLF?

bristolleedsfan

TomsMom wrote: »

Hubby seems to think that to get the 1% bonus you have to leave your ISA for the full 12 months and if you transfer out earlier then you don't get the bonus. Is he right BLF?

Monthly statements stated rate is exclusive of bonus, the monthly interest payments however reflect the rate inc bonus.

So the Bonus gets paid for 12 Months or to transfer out whichever comes first.

If the ISA had to be left for 12 Months to get the bonus then where would that leave people who used the instant access withdrawal facility?

It is confusing with statements showing rates exc bonus, many on here have calculated the monthly interest received and everyone has been very happy that the monthly interest has been paid at the full rate inc bonus.

It is true however that to get the full quoted A.E.R with Barclays then the account would have to be with Barclays for the full 12 Months, moving out early to a slighly lower rate will mean a slight loss of interest as for E.G, ive moved out to a 6.15% Fix so im losing 0.16% a year for a period of 43ish days which i regard as a neglible amount bearing in mind the 6.15% Fix not be available to transfer into in May.

Also Barclays backdated the interest initially to 6th April 2007 so i did get interest from Barclays for 12 Months bar around 2 weeks.

TomsMom

bristolleedsfan wrote: »

Monthly statements stated rate is exclusive of bonus, the monthly interest payments however reflect the rate inc bonus.

So the Bonus gets paid for 12 Months or to transfer out whichever comes first.

OK thanks. We don't have monthly statements - 6 monthly ones for us. It gives details of interest earned in £ for each month then at the end under "Account details" it says

Credit interest rate - 5.81%
Subject to certain rules on this product, your account may be paid up to 1% in addition to the rate above.

He'll have to get his calculator out and work out what interest we've received from the monthly amounts they've quoted.

bristolleedsfan

TomsMom wrote: »

He'll have to get his calculator out and work out what interest we've received from the monthly amounts they've quoted.

Im certain he will find that the interest paid each month has been the rate including first year bonus. :beer:

jay213

saver84 wrote: »

Ok thanks - I'll make arrangements to transfer out - the Direct ISA from Alliance & Leicester seems the be the top paying account that allows transfers in, and I will also apply for Barclays 6.5% for the new year. Very helpful.

I had the same 07/08 isa as you. with regards to the transfer i read this that I would think might prevent you from opening the new barclays isa, im not sure? (because you have to open an account with them)

How do I transfer my existing ISA funds to my Direct ISA?


If you have previous tax year subscriptions in another ISA, you can transfer them into your Direct ISA. This does not affect your £3,000 yearly subscription allowance. You must open a Direct ISA before transferring existing ISA funds.