Take ISA now and join to another later in year?

tomprice

Hi,

Last October i put my ISA in to Britannia 6.55% fixed until Oct 08. I transferred 6k in.
I obviously can't touch this as full amount plus last year's was in.

I'm now looking to put 3.6k in to a new ISA account.

I was wondering. If i get a variable rate (from another company) at around 6% and put in 3k next week...

Then come October if Britannia offer a similar rate as last time will i be able to transfer the new ISA in to the new offer from Britannia?

Ideally i want everything in the same account to avoid me having to keep track of things.


Or shall i just go for a fixed rate one now?

Thanks.

KiKi

Yes, you could transfer it in, bearing in mind:
a) Britannia may not allow transfers in with their new deal
b) there may be penalties transferring out with a new ISA that you open

You could open a Barclays one for 08-09 fixed for a year whilst you keep your Britannia one going, or you could get an A&L one for 08-09 which would allow you to transfer out into Britannia later (or from Britannia to A&L) with no penalties.

Wholly dependent upon whether you really are desperate to have them all in the one account or not. Interest-wise, you're best to put the £3.6K in the highest account (currently Barclays at 6.5% with no penalties or ties) and the rest in the highest account that allows transfers in (currently A&L with no penalties or ties).

HTH
KiKi

tomprice

Thanks for the reply. That makes it clearer.

I'm maybe assuming that because the current fixed rate Britannia ISA allowed a transfer in that the new one will (if they even offer a new one). I wonder if i'm putting too much hope in to them offering a new great rate?


I'm going to have to give this quite a bit of thought.

If i got the one from A&L it would allow me in October to transfer all to my Britannia one and vice versa?


Britannia current offers are fixed 5.6% or variable 4.8%. I'm guessing the fixed 5.6% will not allow me a transfer out to my existing?

bristolleedsfan

IMO Come October Brittannia will be offering its maturing fixed rate ISA customers less than 6%, how much less will depend both on Base Rate changes and money market conditions.

If i was you i would fix 3000 or 3600( however much u have now) at this moment in time either with Skipton BS, Bradford and Bingley, Nationwide, Dunfermline BS depending on your means and whom is in your locality as I believe you want to put your ISA close to home.

Or if u want to keep your option open, like KiKi suggested open a Barclays ISA.

KiKi

tomprice wrote: »

I wonder if i'm putting too much hope in to them offering a new great rate?

In the current climate, you might be betting pretty high!

If i got the one from A&L it would allow me in October to transfer all to my Britannia one and vice versa?

A&L has no penalties from transferring out and in; I don't know about your current Britannia one.

Britannia current offers are fixed 5.6% or variable 4.8%. I'm guessing the fixed 5.6% will not allow me a transfer out to my existing?

Fixed ISAs tend to have penalties for transferring out, like 90 days loss of interest.


If you want the highest returns, then put £3600 for this year into the Barclays Tax-Haven until April 09. Once your Britannia one matures, if the new rate is less than 6.25%, open an A&L one and transfer the Britannia amount in. (The A&L choice assumes that no better ISA appears between now and when your Britannia one matures.)

HTH

KiKi

bristolleedsfan

KiKi wrote: »

If you want the highest returns, then put £3600 for this year into the Barclays Tax-Haven until April 09. Once your Britannia one matures, if the new rate is less than 6.25%, open an A&L one and transfer the Britannia amount in. (The A&L choice assumes that no better ISA appears between now and when your Britannia one matures.)

HTH

KiKi

U seem to be assuming that the variable rate ISAs that u are suggesting wont reduce their rates during the periods that u mention.

My belief is that the "highest returns " will come from Fixed Rate ISA (s) taken out around the current time.