Confused by clerk please explain - someone!

wooders

THIS IS A CASH ISA QUESTION ONLY - NOT STOCKSHARES thankyou

I have a Natwest cash isa that ran last year at 5.5% that ended up with £3009 in by April. I've looked at this site and gone with the recommendation to move this to Alliance and Leicester for the 6.25% isa.
On going into the AnL the young clerk told me;

My £3009 can be transfered --good
I will still also/in addtion have a £3600 to fill, if I can from them -- is this true
Effectively meaning £6600 at 6.25% (if I fill it up)

Question is, is this correct, will the whole amount be at 6.25%, I'm confused as I thought my limit was £3600 for cash

thanks Wooders

Voyager2002

The clerk is correct. You are transferring your savings from last year, but it is now a new tax year and so you can invest some more money in your cash mini-ISA. The limit this year is 3,600, and that is in addition to anything that was placed in an ISA in previous years.

wooders

Have you any idea how many years this is planned for? and does this mean technically I could do £3600 every year in new isa's so long as the other isa's are transfered?

CLAPTON

Gordon said they would last indefinitely
Yes indeed you can build up a very nice tax free saving balance
I can't remember when they started but I'm sure many people have over 20,000 in tax free saings

debbie42

Also, you don't have to transfer existing ISAs, if you don't want to. Some people have multiple cash ISAs from past years.

wooders

ta very much

wooders

Does a previous cash isa that isn't tranfered still accululate the isa interest every year?

debbie42

Yes, though sometimes you find that old ISAs have poorer rates as the providers rely on apathy for you not to move them.

Mikeyorks

wooders wrote: »

Does a previous cash isa that isn't tranfered still accululate the isa interest every year?

Yes. You can have a different ISA every year if you wish .... or simply add your annual contribution into the same one. But if you do the latter - you will likely find your ISA to be lagging behind the general market rates.

Best to do a bit of reading? :-

http://www.moneysavingexpert.com/savings/best-cash-isa

wooders

So,

in a nutshell, I should transfer my £3K FROM NATWEST to A&L and sart up a new isa too, then review in 12 months...yes??

redpete

wooders wrote: »

So,

in a nutshell, I should transfer my £3K FROM NATWEST to A&L and sart up a new isa too, then review in 12 months...yes??

Yes, and remember to review in 12 months time. We have A&L ISAs that were on an offer of extra interest for 12 months, they are now earning something like 4.5% interest which I can increase to 6.25% just by transferring to the current A&L scheme (so they say).