Confused about an old and new ISA - HELP!

tomprice

Hi there.
I had a Britannia Instant Access Cash ISA for a while and in May 2007 i put in 3k full year allowance in. The total was 6k and obviously could put no more in.

In October i saw Britannia offer a Fixed Cash ISA witha rate of 6.55% for a year. I decided to move to this. This was easy.

So i've currently got a Britannia Fixed Cash ISA paying 6.55% fixed until October 2008.


I know as of Sunday I can open a new ISA. However I'm unsure on what to do.

They say when my current fixed year ends in October they are likely to send me a letter saying they have something similiar. That is 6+ months away so I want to open a new ISA now.


So I could open a Britannia instant access ISA of around 4.something %.
Or I could get a fixed one with a different company of around 6%.
I would put the full3k in this week.


Now my dilema is...
If in October i get a letter saying they can offer something close to 6.5 would i be able to take it? Would i be able to transfer the 6k already in AND the 3k from a different company ISA??

I'd actually need to find one that does not offer a penalty for taking out and not a fixed one come to think of it.


Hope this makes sense. And i hope someone can help me to make sense of it.

Thanks.

jem16

tomprice wrote: »

Hi there.
I had a Britannia Instant Access Cash ISA for a while and in May 2007 i put in 3k full year allowance in. The total was 6k and obviously could put no more in.

In October i saw Britannia offer a Fixed Cash ISA witha rate of 6.55% for a year. I decided to move to this. This was easy.

So i've currently got a Britannia Fixed Cash ISA paying 6.55% fixed until October 2008.


I know as of Sunday I can open a new ISA. However I'm unsure on what to do.

They say when my current fixed year ends in October they are likely to send me a letter saying they have something similiar. That is 6+ months away so I want to open a new ISA now.

You need to wait until 6th April to open your new ISA.

So I could open a Britannia instant access ISA of around 4.something %.
Or I could get a fixed one with a different company of around 6%.
I would put the full3k in this week.

You can't - you are already subscribed for this year. After April 6th - yes and it will be £3600 you can put in.

Now my dilema is...
If in October i get a letter saying they can offer something close to 6.5 would i be able to take it? Would i be able to transfer the 6k already in AND the 3k from a different company ISA??

It depends on the conditions of what they are offering you. It should be alright for the £6k already in but not necesssarily the new ISA.

dancingfairy

You can start a new isa on Sunday. I would put the maximum you can in at the best rate you can find. Come October see what they offer for the Britannia isa - you can then either accept it or find a new home for it. You may also be able to transfer the new years isa across to them (Britannia) depending on what they are offering but if it is a great rate they may not be prepared to take a transfer.