A&L Direct ISA issue 4.. questions.

fimonkey

Hi All,

I missed the Lloyds 6.5% ISA. I currently have £9K in NS&I which includes this years deposit of £3600.

The next best ISA appears to be either A&L issue 4 or Abbey. I favour the A&L as I already hold accounts with them, I just have a couple of questions.

1). Can I open this A&L account even though I've already deposited this years ISA allowance in NS&I (Once opened I intend to transfer NS&I money to A&L).

2). If I do 1 above, will I have to close NS&I ISA, or can I keep it open with £1 in there? If latter, is it worth doing this?

3) What's your opinion on the A&L ISA? I know it includes a bonus for a year, I'm happy with that as I'll be looking round to transfer the money again next year. IS the rate likley to fluctuate however once I#'ve put my money in? (I know it's not a fixede rate).

Cheers all.

Baldur

fimonkey wrote: »

1). Can I open this A&L account even though I've already deposited this years ISA allowance in NS&I (Once opened I intend to transfer NS&I money to A&L).

Yes - but forget 'opening an account' just ask A+L to transfer the NS&I funds.

2). If I do 1 above, will I have to close NS&I ISA, or can I keep it open with £1 in there? If latter, is it worth doing this?

You HAVE to transfer the current tax year's funds whole, including interest. You can choose to transfer partial previous tax years' funds - but why leave £1 in NS&I? The purpose for this eludes me.

As far as rate fluctuations are concerned, if we could predict them, we'd probably all be much wealthier than we are....

boobbby

Baldur wrote: »

Yes - but forget 'opening an account' just ask A+L to transfer the NS&I funds.

You HAVE to transfer the current tax year's funds whole, including interest. You can choose to transfer partial previous tax years' funds - but why leave £1 in NS&I? The purpose for this eludes me.

As far as rate fluctuations are concerned, if we could predict them, we'd probably all be much wealthier than we are....

Completely agree with the above. The only time it is worth leaving money with a previous provider is when you take out a fixed rate ISA and still want immediate access to some of your money. The penalties for drawing money from a FRISA out way the higher rate interest.

shaz77_2

Regarding A&L what is the difference between a 'Branch ISA' and a 'Direct ISA'?

Baldur

shaz77 wrote: »

Regarding A&L what is the difference between a 'Branch ISA' and a 'Direct ISA'?

Around 1.75% at the moment.......;)

The Direct ISA is handled from Glasgow, from memory & can only be operated by internet or telephone banking, whereas the Branch ISA can be operated via ATMs & branches.

simonleblank

I think you can manage the direct isa via cash card as well, but please check first

fimonkey

Baldur wrote: »

Yes - but forget 'opening an account' just ask A+L to transfer the NS&I funds.

....

Baldur, I'm not sure what you mean, how can I transfer my previous tax year ISA's to an A&L account if I haven't opened one first?

I can open one online, then download a form to fill in and send it to them, then they transfer the funds.... or is there another way you know of?

Thanks all for advice, you're right, leaving NS&I ISA open is a bit daft!

Cheers

espresso

fimonkey wrote: »

how can I transfer my previous tax year ISA's to an A&L account if I haven't opened one first?

Read this here

Baldur

fimonkey wrote: »

Baldur, I'm not sure what you mean, how can I transfer my previous tax year ISA's to an A&L account if I haven't opened one first?

As per espresso's post (above) - the transfer process opens the account...;)

fimonkey

ahhhh all become clear!.. Many thanks.

Jumping_Bean

Is it generally accepted that A&L is the best ISA around at the moment? I mean a lot of the fixed rate accounts aren't even paying 6.25%.