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I know you're not supposed to close down an ISA but really, it's the only thing I think we can do

(16 Posts)
meemar Fri 12-Jun-09 11:19:07

DH has savings in a shitty Barclays ISA that is paying practically no interest (0.1%).

I keep reading that you should never close an ISA, only transfer it as you lose your tax benefit. But the only ISAs willing to take transfers either have bad rates or unflexible conditions attached.

I think I've found the best way out of a bad situation, but don't know if I'm missing something obvious.

Has anyone else just closed an ISA and just started again?

IDidntRaiseAThief Fri 12-Jun-09 11:22:49

dunno but hope you find out (it's me --pirate)!!
god i'm bored today.

FigmentOfYourImagination Fri 12-Jun-09 11:25:11

The Abbey are doing a 3% for balances over £9k.

Barclays Golden ISA is 2.98% but no transfers so you'd have to start from scratch with that one.

IDidntRaiseAThief Fri 12-Jun-09 11:29:52

figment, does staring form scratch just mean closing your (not very interest productive) isa, getting your cash out, and putting it back into another isa?

Bettymum Fri 12-Jun-09 11:31:00

I'm in the process of transferring to NatWest, they have rates of 2.5% I think. (It's the E-ISA).

MrsTittleMouse Fri 12-Jun-09 11:42:34

IDidntRaiseAThief - if you take money out of an ISA you can't put it back into another ISA. You have to do a special transfer instead. So if you take it out, the only thing that you can do is put in the maximum amount every year until it's all back in, and pay tax on the interest in the meanwhile.

I have a Natwest ISA that allows transfers. 2 months in, and the money still isn't transferred from NS and I, but that's another thread. hmm

meemar Fri 12-Jun-09 11:44:12

Hi pirate - I am bored too - of bloody researching ISAs!

I saw the Abbey one, but it is 3% variable and I just worried that it would go down as soon as I put money in!

I'm looking at a First direct one which has an interest rate of 7% fixed for 12 months. You have to have a 1st Direct current account (which DH does).

But you can't transfer in, which means withdrawing all from barclays and putting it in his current account and gradually transfering it into 1st Direct ISA (monthly payments).

It looks like the best way forward, but my brain is going so numb I'm starting to be past caring grin

Penthesileia Fri 12-Jun-09 11:46:34

Have you really tried and gone all medieval on Barclay's asses? grin Have you gone in, asked to speak to the branch manager and pointed out that you are on the verge of removing your custom. In a stroppy "I am the customer, fool", type of way?

I find that if you make a big enough fuss, you can often pull off what you want.

It's amazing hmm what they can actually do for you when you really stand up for yourself.

brettgirl2 Fri 12-Jun-09 12:37:33

I transfered mine to halifax, decent interest rate and you are able to make up to four withdrawls.

wombleprincess Fri 12-Jun-09 13:32:07

how much does he have in it, and do you have one?

meemar Fri 12-Jun-09 13:49:18

He has £7000. I have one too, but neither of us has deposited this year so still have full allowances.

I might relook at transfering to halifax, thanks brettgirl. I saw it before and didn't realise you could choose how many years to save for. I thought it had to be four years and it put me off. It might be the best one yet smile

choccyp1g Fri 12-Jun-09 13:55:44

Another option is to move it to a "stocks and shares" ISA. Then you can either choose what shares to buy, or you can put it in a "fund" where they choose the shares for you. Given that shares are so low at the moment, I figured they are bound to go back up eventually.

I used Hargreaves Lansdowne as the "providers" but obviously could not recommend anything to do with finance.

IDidntRaiseAThief Fri 12-Jun-09 14:36:36

i just do mine one year at a time.

wombleprincess Fri 12-Jun-09 14:40:43

well you could move some of his into yours then just leave balance £3400 (??)in his which is better than 7k

IDidntRaiseAThief Fri 12-Jun-09 14:43:45

3600 nowadays

wombleprincess Fri 12-Jun-09 14:47:32

ok, so put 3.6 into a new one that you open with a better rate and either leave or transfer his. shows how little i save!

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