ISA maturity confusion

Crunchie1_2

ok thanks :T

PBA

To add some clarification, this isn't going to be a cash ISA, it's a maturing Safety Plus Growth plan (ie investment ISA). Choosing to keep it in an Abbey ISA (at least, using the form that will have come in the post) will mean that you're reinvesting in a 6 year Guaranteed Growth Plan as this is the only option available on a non advised basis. There is more of a choice available but you need to see a branch advisor to arrange anything else.

Crunchie1_2

thanks. so there are 'better' options? :undecided

jamesd

PBA, thanks. It sounds as though Abbey is being really nasty in the options they offered in that letter - lock the money away with them for a long period or lose the ISA benefits.

Crunchie1, what this means is that you should go to a branch and ask them to transfer it to any ISA option that does not lock your money up, so that you can transfer it to a stocks and shares ISA with another provider without penalty. Their six year Safety Plus Growth plan product is undoubtedly poor and not worth having.

Once you have that done you can transfer to someone else, say Hargreaves Lansdown, and pick a good range of funds that would give you better potential than offered by guaranteed growth plans. Don't worry about those yet, though - can discuss those choices later.

Do you expect to put more than 7200 including this money into ISAs during this tax year? If the answer is no then you should just put the money into your currrent account and you can take it from there and put it with a new provider that way. Only need to worry about transfers if you would go over the 7200 limit or if it was cash and going over the 3600 cash limit.

Crunchie1_2

ok thanks. but you previously said it must never be out of an ISA so I couldnt move it to a current account? im going to see the branch today so hopefully there will be some other options not on the form

debbie42

Crunchie1 wrote: »

but you previously said it must never be out of an ISA so I couldnt move it to a current account?

That's true if you were planning on using this year's allowance in addition to that already saved. If you weren't then it's a darn site quicker and less hassle to move it manually, although you'd lose the tax wrapper during the move. You'd use this year's allowance by doing that though.

jamesd

If you take it out of all ISAs into a current account or non-ISA savings account then putting it back in to any ISA will count against your allowance for this year when you put it into the new ISA. This only matters if you'll want to use the allowance for some other money this year.