Abby postal ISA rate cut

Dude

Can anyone give me information on what to do now that Abby have cut the interest rate on there postal ISA from 5.35% to 4.90%. Is it normal for the interest rate on a postal ISA to change? Should I be looking to move my money to another account or starting a new ISA (with a diffrent bank) next year?

masonic

I think mine is staying put for the time being. There doesn't seem to much in the way of better deals that don't involve having to transfer again before next April.

jimclark1967

Hi Dude!

...sorry couldn't resist

The best no hassle ISA at the moment is with Halifax at 5.0% so only 0.1% more. I'm in the same situation and will stick with Abbey until there's a more significant difference (like 0.25% maybe) no point switching to Halifax right now incase they're not as competitive after the next base rate change.

JC

Innys

On a related issue, got a letter from IF yesterday saying they are dropping their rate down to 4.55% from 5%. :eek:

I will have to swicth to Halifax ASAP.

Rikki

Is it easy to transfer an Isa in the Tax year you take it out? It will still need to be one that I can pay into during this tax year.

jimclark1967

Rikki wrote:

Is it easy to transfer an Isa in the Tax year you take it out? It will still need to be one that I can pay into during this tax year.

Yes it's just as easy as any transfer, the only restriction being that you must transfer the entire balance for the current tax year.

JC