Cash Mini ISA Transfer Advice - Worth it?

V6Matt

In the last tax year I set up an National Savings and Investment Direct ISA (at the time it was 6.2%) I perhaps foolishly expected them to stay competitive, however it seems that whilst the competition are now around the same 6.2% mark, the NSI has dropped to 5.3%.

I was hoping to add another £3600 to the account in the new tax year, but wondering if its best to transfer the NSI ISA to a new one?

Are there any ISA accounts that are worth transferring too? (preferably one that consistently offers good rates!)

I guess if I transfer my ISA, I can't also transfer an additional £3600 into the new account?

Thanks

Baldur

V6Matt wrote: »

I guess if I transfer my ISA, I can't also transfer an additional £3600 into the new account?

Of course you can pay in this year's allowance to any ISA provider - whether it's the one to which you transfer your previous year's Cash ISA funds or a totally different one.

See HERE for variable & fixed rate ISAs which accept inward transfers (scroll down the page).

Consistency doesn't always equate to the best rates - see HERE.

V6Matt

Baldur wrote: »

Of course you can pay in this year's allowance to any ISA provider - whether it's the one to which you transfer your previous year's Cash ISA funds or a totally different one.

See HERE for variable & fixed rate ISAs which accept inward transfers (scroll down the page).

Consistency doesn't always equate to the best rates - see HERE.

Thanks for the quick reply.

I thought I read that if I transfer my existing funds from one ISA to another, then that counts as my deposit for the new tax year, so your saying I can transfer existing money and then pay in an additional £3600 to this new account?

That was the only reason I was looking for consistency, otherwise I would never be able to transfer the full £6k plus allowance over to a new supplier, as I thought the yearly limit was £3600.

Baldur

V6Matt wrote: »

I thought I read that if I transfer my existing funds from one ISA to another, then that counts as my deposit for the new tax year, so your saying I can transfer existing money and then pay in an additional £3600 to this new account?

That was the only reason I was looking for consistency, otherwise I would never be able to transfer the full £6k plus allowance over to a new supplier, as I thought the yearly limit was £3600.

Transfers do not count as 'opening' a new Cash ISA, the £3,600 limit only applies to opening a *new* Cash ISA AND paying *new* money into it. Any previous years' ISA funds (including any accumulated interest) remain tax free, as long as they remain in an ISA product and can be transferred as you wish.

McSaver

Do what I am doing... Transfer it to Icesave and get 6.1% and a better rate guarantee as well

V6Matt

Thanks everyone...looks like its time to transfer.

I just checked out Icesave but it looks like they haven't signed up to the UK compensations scheme...meaning hassle if they go bust!

Abbey are doing a reasonable deal by the looks of it

McSaver

V6Matt wrote: »

Thanks everyone...looks like its time to transfer.

I just checked out Icesave but it looks like they haven't signed up to the UK compensations scheme...meaning hassle if they go bust!

Abbey are doing a reasonable deal by the looks of it

Icesave are signed up for the UK compensation scheme...

http://www.icesave.co.uk/financial-protection.html

cc004-2

McSaver wrote: »

Icesave are signed up for the UK compensation scheme...

http://www.icesave.co.uk/financial-protection.html

Hi McSaver,

Please excuse my ignorance, has this recently changed? I thought that Icesave had only partially signed up (or something of that ilk)?

If Abbey don't get move on with my application/transfer, it'll be cancelled and going towards Icesave now I've just read your posting.


Cheers,
ChrisC.

McSaver

cc004-2 wrote: »

Hi McSaver,

Please excuse my ignorance, has this recently changed? I thought that Icesave had only partially signed up (or something of that ilk)?

If Abbey don't get move on with my application/transfer, it'll be cancelled and going towards Icesave now I've just read your posting.


Cheers,
ChrisC.

No Icesave have been part of the banking code and financial compensation scheme since October 2006 when Icesave was launched.

Lavendyr

They are in the "passport" scheme which means that you get the first part of any claim from the Icelandic scheme (up to €20k or so I believe) and the remainder from the FSCS. But either way, your money is just as safe as it is in a UK institution - possibly safer than many.

ScarletBea

McSaver wrote: »

Do what I am doing... Transfer it to Icesave and get 6.1% and a better rate guarantee as well

I did it last week, from NS&I (well, need to send the transfer form on monday).