When is the best time to switch ISA's ?

Tashyman
by Tashyman 16 February 2010  |  Comments 7 comments  |  Love Love  0 loves

Currently have a cash ISA with HBOS @0.5% (transferred from Icesave when they went under) andis fully used for this year.

If I transfer before April will I lose the interest (not a lot anyways on the just over 10K).

So to change now or after the start of the next tax year ?

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Comments (7)

  • Swarbs
    Love rating 272
    Swarbs posted

    If it's the ISA Saver Direct, then you can transfer the money out whenever you want, and will not lose any interest - the bank will just add the interest onto the final amount transferred out when the account is closed. You will only lose the interest if it is a fixed rate ISA for a fixed period of time, but these ISAs tend to have interest rates way above the base rate so it's unlikely you have one of these. If you think you might, try calling HBOS to check - they will be able to give you a definite answer.

    Posted on 16 February 2010 | Love Love  1 love Report
  • Tashyman
    Love rating 0
    Tashyman posted

    Cheers Swarbs.......yes it is the Saver Direct so thats good news.....especially seeing as we now have a local santander branch.....might as well get the 2.75% for a year at least.

    Thanks again

    Posted on 16 February 2010 | Love Love  0 loves Report
  • MikeGG1
    Love rating 804
    MikeGG1 posted

    Don't forget that anything transferred doesn't count against your allowance.

    It is only new money from your account that counts. So if this is a transfer from Icesave, you haven't used any allowance yet unless you have another account elsewhere.

    Mike

    Posted on 16 February 2010 | Love Love  1 love Report
  • Tashyman
    Love rating 0
    Tashyman posted

    Hmmm......Getting confussed now !

    The Ivesave money was transferred to HBOS and this year I have put in £3,600 (I am under 50) but according to Mike if I transfer my balance to say Santander I can put another £3,600 in as it doesn't count ?

    Arrrgggggg

    Posted on 16 February 2010 | Love Love  0 loves Report
  • manzanilla
    Love rating 410
    manzanilla posted

    No. You have used this years allowance up. Mike meant if you hadn't put any new money in this year, then don't forget you can as the transfer is not new money.

    manzanilla

    Posted on 16 February 2010 | Love Love  1 love Report
  • Tashyman
    Love rating 0
    Tashyman posted

    Ah....thats what I understood in the first place....cheers

    Posted on 16 February 2010 | Love Love  0 loves Report
  • MikeGG1
    Love rating 804
    MikeGG1 posted

    Your original post appeared to indicate that all the HBOS account had come from Icesave and hence my comment.

    Mike

    Posted on 16 February 2010 | Love Love  0 loves Report

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