Isa, Isa Isa

ydraigcoch

Hi, this is probably a dumb question, but here goes anyway.

I have an ISA with NS&I which I think pays 6.2% and has £3000 in (from last year). My Wife also has an ISA with A&L which pays 6.3% (I think). Anyway, now that its the new Financial year I can now invest £3600 in each.

My question is this, should I invest the money into these ISAs or open another one (i.e with Barclays)? I'm not even sure I can do that.

Thanks for the advice

Lokolo

Your choice, you can either

a) Open a new ISA, shove the £3600 in.
b) Dont bother, shove the £3600 in existing ISA.

However just so you know, investing is the Stocks and Share ISA, saving is Cash ISA. (Investing usually means shares, funds etc. whereas saving is usually just cash savings)

KTF

You could also:

c) Open a new ISA each, transfer in your existing ISAs then add this years 3600 on top.

Lokolo

lol I was going to suggest that but was thinking about leaving that for another time, don't want the op getting confused just yet

Lavendyr

I don't know of an NS&I ISA paying 6.2% by the way, their Direct ISA is only 0.3% above base rate which means as of today it's just 5.3% - you can get much better rates than that elsewhere.

[Deleted User]

In 1 years time your NS&I ISA at 6.2% would have £7,009.20 (the orginal £3000 + £3600 + interest) in it (does the original £3000 include interest gained from last year? If so what was the total figure?) So you'd gain £409.2 interest.

For your wife it'd be, at 6.3%, 7,015.80 (the orginal £3000 + £3600 + interest) Again does the original £3000 include interest gained? So you'd gain £415 interest.

In 1 years time a Barclays ISA at 6.5% would have 3,834.00 or £234 interest (assuming 6.5% remains fixed) Then add to that the interest you'd get from your original untouched ISA, £186.00

Same for your wife, 1 years time a Barclays ISA at 6.5% would have 3,834.00 or £234 interest (assuming 6.5% remains fixed, which I highly doubt it won't with BoE cutting rates today) Then add to that the interest you'd get from your original untouched ISA, £195.00

So if you carry on with your original ISAs you get £409 for you, £415 for the wife (this could be more if you've missed of the interest gained from year 1 in your original post)

If you start a new ISA with Barclays, at most, you'd get £420 for you, £429 for the wife

Not much of a difference really!

liitleblackcat

You can't move previous year's ISAs into Barclays - just thought you should know. But you sure can beat 5.3% whic is the current NSA Direct ISA rate after tiday's base rate cut. See the best buys for transfer-in on Martin's ISA pages http://www.moneysavingexpert.com/savings/best-cash-isa

[Deleted User]

Deleted_User wrote: »

In 1 years time your NS&I ISA at 6.2% would have £7,009.20 (the orginal £3000 + £3600 + interest) in it (does the original £3000 include interest gained from last year? If so what was the total figure?) So you'd gain £409.2 interest.

For your wife it'd be, at 6.3%, 7,015.80 (the orginal £3000 + £3600 + interest) Again does the original £3000 include interest gained? So you'd gain £415 interest.

In 1 years time a Barclays ISA at 6.5% would have £3,834.00 or £234 interest (assuming 6.5% remains fixed) Then add to that the interest you'd get from your original untouched ISA, £186.00

Same for your wife, 1 years time a Barclays ISA at 6.5% would have 3,834.00 or £234 interest (assuming 6.5% remains fixed, which I highly doubt it won't with BoE cutting rates today) Then add to that the interest you'd get from your original untouched ISA, £195.00

So if you carry on with your original ISAs you get £409 for you, £415 for the wife (this could be more if you've missed of the interest gained from year 1 in your original post)

If you start a new ISA with Barclays, at most, you'd get £420 for you, £429 for the wife

Not much of a difference really!

If it's 5.3% I'll re-do my calculations!

In 1 years time your NS&I ISA at 5.3% would have £6,949.80 (the orginal £3000 + £3600 + interest) in it (does the original £3000 include interest gained from last year? If so what was the total figure?) So you'd gain £349.8 interest.

Are we sure on your wife's interest?

In 1 years time a Barclays ISA at 6.5% would have £3,834.00 or £234 interest (assuming 6.5% remains fixed) Then add to that the interest you'd get from your original untouched ISA, £159.00

So if you carry on with your original ISAs you get £349.8 for you (this could be more if you've missed off the interest gained from year 1 in your original post)

If you start a new ISA with Barclays, at most, you'd get £393, this time quite a bit more (obviously due to 5.3% not 6.<something>)!

mister_bojangles

Am I missing something: NO one's talking about Abbey Direct ISA at 6.25% - and you can transfer other ISAs. I think it's good, and hoping to open an account. but I havent read much about it in these postings.

wooders

As above same as Alliance n Liecester 6.25% and you can transfer old money and open a new ISA too . ie £3k + £3600 (if you have it) at 6.25%. You can even print off the forms on the tiniternet.

DO NOT TAKE OUT LAST YEARS AND PUT IT SOMEWHERE OTHER THAN TRANSFER!!!!! you'll lose tax free status

Burlesque_Babe

I've also been looking at the Abbey Direct ISA - any thoughts on it anyone? I've got £3000 plus interest to transfer from NS+I and £3600 for this year.