Easy ISA Question - advice please!!!

RB2008_2

hi guys,

quick question here. first time poster on here so bear with me. I have around 3k in a Nationwide Isa (5.05%). I am tempted to leave this money there and open a fresh new isa for this year with someone else. for my own interest gain perspective will it be better to add to my current ISA for this year (i.e another 3.6k making around 6.6k) to gain more interest or to put 3.6k in another isa and get the interest on both separately

i guess what I mean is, is it better to have the money spread around or all in one place to maximise my interest? in your experience is it easy to get your isa funds transferred? its not like the rigmarole like when you change phone companies is it!!? :rolleyes:

any advice for a newby here would be excellent

bryanb

Easy to transfer, you can do it when you open a new ISA provided the new one accepts transfers in. All the work is done by the new bank, but check that interest is backdated to when you apply to transfer. There are ISA's around offering 6.5% at the moment.

Too_Bloo

If you don`t anticipate needing the money for a while, you could just keep the ISA with the Nationwide. They are offering a rate of 6.15%, fixed for one or two years.

RB2008_2

thanks guys, so would you say for ease on admin side that it would be best to leave my current with N'wide and open a new one with someone else at a better rate? i guess my key question is (in your opinions) is it better to have the money in one place, or spread around a bit? just thinking of how I can be most efficient with my interest?

debbie42

RB2008 wrote: »

i guess what I mean is, is it better to have the money spread around or all in one place to maximise my interest? in your experience is it easy to get your isa funds transferred?

You would maximize your interest by having overall better rates, not by having them languishing in poorer paying accounts. Having said that, the hassle of moving may not make it worth moving £3K for, say, only 0.1% better interest. However, you can easily get 6% + at the moment, and that difference on £3K is around £30 p.a.

I've moved accounts a few times now, and it has (so far) been minimum hassle, and worth the bother.

RB2008_2

debbie42 wrote: »

You would maximize your interest by having overall better rates, not by having them languishing in poorer paying accounts. Having said that, the hassle of moving may not make it worth moving £3K for, say, only 0.1% better interest. However, you can easily get 6% + at the moment, and that difference on £3K is around £30 p.a.

I've moved accounts a few times now, and it has (so far) been minimum hassle, and worth the bother.

thanks Debbie, I think you are right. its a question really on it being worth the hassle for 30 odd quid a year. thanks for confirming its never really been much hassle for you.

debbie42

It's even simpler to switch products within the same provider. The fixed rate offering by NW that Too Bloo posted of is a good option for the existing funds if you don't think you'll need them for a year. You could still shop around for the current year's allowance.

RB2008_2

debbie42 wrote: »

It's even simpler to switch products within the same provider. The fixed rate offering by NW that Too Bloo posted of is a good option for the existing funds if you don't think you'll need them for a year. You could still shop around for the current year's allowance.

i think thats what i'll do now, N'wide have a 6.15% bond for a year. thinking I will transfer this years allowance and my previous into there. it sounds easy and i'm just trying to minimise hassle for reasonable financial gain.

wooders

Alliance and Leicester - on line form, 6.25% easy transfer. I'm in the same boat as you really, £3000 in a 5.5% Natwest isa. But I filled the form in and transfered over.
Easy peasy and worth £22.50 pa. I'm getting the wife to do the same with her £3000 too.

JohalaReewi

wooders wrote: »

Alliance and Leicester - on line form, 6.25% easy transfer. I'm in the same boat as you really, £3000 in a 5.5% Natwest isa. But I filled the form in and transfered over.
Easy peasy and worth £22.50 pa. I'm getting the wife to do the same with her £3000 too.

Check the small print with the A&L offer. From what I can make out, you have to open a current year cash ISA (08/09) for A&L to accept your transfer(s) in. Doing this means you can't have a cash ISA for this year with anyone else so if you also have money to put in a cash ISA this year, it will have to be A&L.

youreds

JohalaReewi wrote: »

Check the small print with the A&L offer. From what I can make out, you have to open a current year cash ISA (08/09) for A&L to accept your transfer(s) in. Doing this means you can't have a cash ISA for this year with anyone else so if you also have money to put in a cash ISA this year, it will have to be A&L.

Is that right? The A&L terms say you can't subscribe to another cash ISA, but if you're transferring in you aren't subscribing - is that right? I want to transfer last years Barclays tax buster to A&L, then open a Barclays Tax haven & deposit £3600.

Youreds!