Where to transfer ISA to?

heathers_3

I haven't posted a thread for years, but here goes....

I have a Cash ISA with IF for a number of years (approx £6K-7K to date) which is at a current rate of 5.35% AER/Gross. After reading about the various current improved Cash ISA rates around, I would like to tranfer to either Alliance & Leciester (rate 6.25%) or Icesave (6.05% and a rate guarantee until 2011).
As this is an ISA that I've never transferred previously, is it worth transferring it to A&L for this financial year 06 Apr 08/05 Apr 09 and then transfer it to Icesave for the following financial year 06 Apr 09/05 Apr 10.

I now read that Halifax has a fixed ISA for 4 years of 6.20%! I assume this calculates better...right?

Can anyone shed some light on this? Can this be done and is worth (I think it calculate better) implementing a transfer like this? I'm trying to save up for a deposit for a property (i.e. a flat or shared ownership scheme). I don't wish to open to an account stocks such as maxi ISA.

Baldur

You can transfer previous years' Cash ISAs at any time - the tax year is only relevant for new money, i.e. you could take out a Cash ISA with one provider with this tax year's allowance of £3,600 (new money) and transfer your IF ISA funds to a totally different provider, if you wished.

Mikeyorks

heathers wrote: »

As this is an ISA that I've never transferred previously, is it worth transferring it to A&L for this financial year 06 Apr 08/05 Apr 09 and then transfer it to Icesave for the following financial year 06 Apr 09/05 Apr 10.

You have a year to decide the latter part? Meantime you generate a close to 1% advantage by moving it to A&L asap?

The Halifax 6.2% is a slightly lower rate .... but offers longevity if you know how interest rates are going to perform over 4 years? But - in your position (deposit for a property) .... it seems silly to tie your money up for 4 years! There's a substantial penalty (6 months interest) if you want your money out of the fixed rate early.

I'd go with your A&L thought .... and keep an eye on rates over the next few months. You can always transfer again.

caveat_emptor

Abbey also pays 6.25% on transfers.

DocProc

The Icesave ISA comparison table is worth a peep.

Take note of the column headings, eg, Is there a short term bonus that then drops?, Guarantee on Rate, AER on £1,000, Transferring Facility.

It's at http://www.icesave.co.uk/easy-access-isa-how-we-compare.html

munk

A&L have a 6.25% cash ISA right now which is very transparent compared to some others.