Cash ISA Questions

Aion

Aion

Time-Traveller
Something like 1.5 years ago, I opened a cash ISA with HSBC when I setup my bank account. At the time I wasn't too concerned and just wanted a bank account I could access on the net.

For months now it's been giving me next to no interest, and I have no clue why. And when I mean next to no interest, I mean it - 50p when £3,000 is in the account!

I'm not 'up' on bank/savings accounts and whatnot, and I'm unsure what the best way to resolve this situation is... I'm happy with HSBC in terms of ease of use and money being paid it into it - I even have a CC linked to my account... but, obviously, I need a savings account where I actually get interest or there's little point in me letting HSBC hold any money. I'd be ok if I was getting anything bordering on semi-decent, but I must only be getting a rate of like 0.02%...

Is it easy transferring one ISA account to another offered by a different bank? I don't like the idea of transferring 3k at once... :-|

/noob
 
1. ISA's only really update once a year in April so it's pointless checking every few months

2. good luck finding anywhere with good interest, the intrest rates for the banks is at 0.5% so they're not going to be handing it out willy nilly
 
I read through that the other day, I think, also looking at First Direct.

Can you tell me how the process of transferring money from one ISA account to another works? The idea of sending £3000 on the internet doesn't fill me with confidence...

When I looked at the First Direct site, it said something about needing a stable bank account with a monthly income of £1500 to avoid charges in order to get an ISA with them. I was going to fill out their online form, but they wanted a lot of details... :|

...I'm a real idiot when it comes to these sort of things. All I want is a savings account that gains money over time; I don't want to change from HSBC fully... but it seems like I'd need to go through the hassle of switching over to First Direct 100%. :|

/headache
 
Unless the rules have changed, you can trasnfer from other banks without having to hold a current account with them. I've only got an ISA one with First direct.

You do have to send instructions to your other bank as well before they release the money into the new ISA account. Maybe, it's worth a call to First Direct? I'm pretty sure they will be able to explain you the details better than me.
 
I opened an ISA account today at Barclays called the 'Golden ISA'. In the first financial year I can deposit a maximum of £3600, and in the following financial year I can deposit up to another £5100, and the following financial year from now begins this coming April. The interest rate is variable, but is presently at 2.49% AER, presumably meaning that it is a constant 1.99% above the base rate. Whether this offer is significantly better or worse than any competitors, I do not know. Hope this helps.
 
I have a much better rate than Aion's with my HSBC cash E-ISA! HSBC do quite a few - might be worth having a look at the others. I don't remember my rate but I make a good bit more back than 50p/£3000 each time I get an interest payment. There were better ones than mine available when I signed up but I like mine as it has instant online access and the bare minimum of fuss.

R
 
It seems I got confused and you can actually just open an E-ISA account with FD without anything else needed.

I filled out their online form and received an email telling me forms have been sent out. The email also said I can request additional transfer forms by ticking a box on the forms I sign and send back. It seems simple enough. :|
 
@Mutsumi, 2.49% is not bad.

Aion said:
It seems I got confused and you can actually just open an E-ISA account with FD without anything else needed.

I filled out their online form and received an email telling me forms have been sent out. The email also said I can request additional transfer forms by ticking a box on the forms I sign and send back. It seems simple enough. :|
Click to expand...
Sounds like what happened to me. One of the forms you will get is meant to be sent to your current bank, to allow you to transfer the money to the new ISA account. it's a reasonably easy process actually.
 
Been off the forum for a while so I only just spotted this thread. Transfering an ISA is relatively easy, as mentioned above it usually involves filling out a paper or online form. The one thing you mustn't do is withdraw the cash (as you will lose the tax-free wrapper) if you do this so transfering is the way to go.

It normally takes 30 days on average to transfer, thats the industry standard. Accounts become uncompetitive really quickly thats why transfering is often recommended. Usually the best rates are for new ISA's (which dont accept transfers) as banks want to attract new customers but over time you can build up a decent amount of cash so it is worth moving old ISA's to a better home. Hope this helps.
 
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