Hi,

I've had a cash ISA with halifax for a few years and each year added the maximum allowed, the rates this year have crashed appallingly. I always thought once you started a cash (or share!) ISA you had to stick with the same provider, but a source yesterday said this wasn't the case, and that in fact I could have put the max annual amount each year with different providers - is this true?

Also I did a search on MS for best cash ISA's and there are quite a few paying over double the Halifax rates - can I transfer all or part of what I have with the Halifax to another provider if so how do I go about it?

hope you can help

thanks

Saltey01

Hi.

"in fact I could have put the max annual amount each year with different providers - is this true?" Yes this is true. I have a number of ISAs and I always started a new one each year ('cos the rates were always better than the old one).

"can I transfer all or part of what I have with the Halifax to another provider if so how do I go about it?" Yes, you need to open the new ISA first (after checking that they'll accept transfers in - some don't), then you need to give them details of the old ISA. This is either using a form downloaded from the internet from the new ISA providers web site or by contacting them by phone or whatever. Basically the receiving ISA provider does everything for you. So you can deposit up to £3600 with the new provider (provided you haven't deposited any elsewhere this tax year) and transfer all funds plus interest from old ISAs. But again, check that the new provider accepts transfers in.

One thing however. I heard recently that you can only open one ISA per year, however much or little you deposit in it. Not sure if this is true. So if you've already opened one this tax year, you're scuppered. Perhaps others will know for sure.

Good luck.

Last Para from JohnB47

Yes that is true...only ONE per Financial Year...so those ISA Providers who entice you at the beginning of the Financial Year with attractive Interest Rates can later reduce those Rates, unless they have given any Guarantees to maintain them, and you cannot Transfer until the NEW Financial year. Moreover some ISA Providers, having reduced the initial Interest Rate, later on offer those who have not yet opened an ISA, a higher more attractive interest rate, to encourage Savers to them, BUT they will not allow existing Savers to transfer into them. All highly DECEITFUL if not unethical, because the Rules at present allow it. Savers should put pressure on the Government to change the Rules, and there is a Petition to Gordon Brown at http://petitions.number10.gov.uk/SaversFairDeal/ where you can register your disgust by signing it. Its the only way we the Small Savers and Pensioners MIGHT get a fairer deal

Thanks for clarifying that.

I agree with your other comments. I'll add my name to the petition now - thanks for flagging it up.

Cheers.

Is it possible to close the ISA account with the provider ( so you are no longer an 'existing' saver) and then open a new one with the same provider in the next financial year, assuming, of course, they're offering a better new rate than the account you want to close? (Some banks and BS's allow this on their savings accounts, Bradford & Bingley, for instance). For example: LloydsTSB had a 6.5% fixed rate ISA last financial year for a bit. I think this year their ISA will pay less than half that, and maybe won't be fixed, but if it's competitive, it might be a case in point.

Yes you can transfer from any previous Financial Year, into the current Year, once you have opened a new ISA with the new Provider in the Current Year.It is usually the case that a Provider will not continue into to following year the same level of interest as in the year when you opened the Account. It is usually lower, since they hope you will not notice, or that you are too lazy to go to the trouble to transfer. Of course you have to find a Provider who allows a Transgfer In too. Not all do.

Optimist:

Is it possible to close the ISA account with the provider ( so you are no longer an 'existing' saver) and then open a new one with the same provider in the next financial year, assuming, of course, they're offering a better new rate than the account you want to close? (Some banks and BS's allow this on their savings accounts, Bradford & Bingley, for instance). For example: LloydsTSB had a 6.5% fixed rate ISA last financial year for a bit. I think this year their ISA will pay less than half that, and maybe won't be fixed, but if it's competitive, it might be a case in point.

Yes you can do that. But if you mean close the account and take the money out, as opposed to transferring it to another new ISA, then you've lost out because you can only reinvest up to £3600 of that money in the new ISA. The best option is to open a new ISA at the beginning of a tax year, one that accepts transfers in, put £3600 in it and then transfer all money from your poor ISAs.

However, this seems to be becoming academic - what with todays rate drop, even ISAs are not what they were. I hear some people are withdrawing their savings cash and investing in Premium Bonds.

Cheers.

I put £5K into premium bonds in April 08 and so far no prize at all. From what I hear, Premium Bonds' "returns" are getting very thin. If the "return" were, say 2%-ish, then you may as well stay in the Cash ISA or other savings account. It should be possible to average a return of about 3%, although that's small comfort to us, as our savings income is about to be halved, and maybe halved again before the financial year begins in April. We're thinking of borrowing a huge amount at 0% (as if!) and buying up a load of holiday let accommodation in the West Country to profit from the tourist boom to come, charging in Euros. Any bets about what the weather might be like this Summer? Ha Ha!

HI thanks to everyone for the really useful information - I too saw a drop in my Halifax ISA from 5.50% to 2% in 2008 and know there are better offers out there, so will start to look at options outlined. As someone who decided to retire a bit early last year - based on pension and interest on savings, the cut in all rates has had a real impact and I completely agree with Bryantheviking we are penalised not rewarded for saving, and will sign the petition as well.

thansk again

Saltey01