Should I switch?

tomewer

Hello,

I have £3,000 saved in my Icesave (6.05%) ISA from this financial year, and will obviously have another £3,700 to save in this coming year.

Is it worth my while/is it possible for me to transfer the existing money into a better ISA next year and then save a further £3,700?

I've always been a bit confused about the whole situation...I know that you're only allowed to save £3,000 (or £3,700 shortly) per year, and I think you're only allowed one ISA at all, but can you transfer funds exceeding £3,000 and still continue to save?

Cheers

jem16

Your transfer doesn't count as new money so you can transfer and still have your full allowance. It's £3600 next year not £3700.

Where do you plan to transfer to? There's not many that will offer better terms.

tomewer

jem16 wrote: »

Your transfer doesn't count as new money so you can transfer and still have your full allowance. It's £3600 next year not £3700.

Where do you plan to transfer to? There's not many that will offer better terms.

That's what I figured...it probably wasn't worth the hassle. But thanks for clearing up the situation RE transfers of existing funds.

tomewer

Well I can't do much better than the existing rate so I may as well stick with that. And if a better rate comes along later in the year then I've left my options open to take advantage of it.

Aegis

The best you're likely to get after transfer would be about 6.25% at the moment. If it's worth transferring for that amount, then I think the A&L Direct ISA is the one to go for (6.25%, don't be distracted by their 10% one; it's rubbish for transferring in to). If you're looking for new money, the best no-catch new one looks to be the Barclays Tax Haven ISA (6.5% variable). Opening one of those in addition to your Icesave ISA wouldn't be a problem at all.

If you don't mind changing current accounts too, you can get the A&L ISA I mentioned above (10% variable), but the current account doesn't seem that great. If you don't mind dropping £500 into it each month (the current account, not the ISA) then 10% is the best you can get at the moment to the best of my knowledge.

tomewer

Aegis wrote: »

The best you're likely to get after transfer would be about 6.25% at the moment. If it's worth transferring for that amount, then I think the A&L Direct ISA is the one to go for (6.25%, don't be distracted by their 10% one; it's rubbish for transferring in to). If you're looking for new money, the best no-catch new one looks to be the Barclays Tax Haven ISA (6.5% variable). Opening one of those in addition to your Icesave ISA wouldn't be a problem at all.

If you don't mind changing current accounts too, you can get the A&L ISA I mentioned above (10% variable), but the current account doesn't seem that great. If you don't mind dropping £500 into it each month (the current account, not the ISA) then 10% is the best you can get at the moment to the best of my knowledge.

After you mentioned that 10% ISA I thought I'd have a quick look. The other day I applied for an A&L standard current account (with 8.5% on balances up to £2,500) for my main account but in looking at that linked deal it would make much better sense for me to start up a premier current account (as my main account) and take advantage of that 10% ISA?

I'll give their call centre a ring tomorrow and see if anything can be done.