From: "Chris" 
Newsgroups: uk.finance
Subject: Re: Mini cash ISAs
Date: Sun, 14 Dec 2003 21:32:59 -0000

"Ronald Raygun"  wrote in message
news:2C2Db.5437$5b5.56385825@news-text.cableinet.net...
> Tim wrote:
>
> > I have a First Direct ISA (3.55%) with £4k in. I could get an ISA with a
> > different company (eg If.com) which pays better interest (4.35%); is it
> > worth opening one and transferring £3k over NOW, or waiting till closer
to
> > the end of tax year?
>
> The sooner the better, because then you get more of the benefit of the
> interest rate differential.  Should be worth about £10 if you do it now.
>
> If you are not planning to add any more money this tax year, and if none
> of the £4k were put into the old ISA this year, then you can just withdraw
> the cash and use it to open the new ISA.  Otherwise make sure you use
> the proper transfer procedure.
>
> > Is it better to have monthly or yearly interest on one of these cash
ISAs?
>
> That depends on what the rates are.  Compare the AERs.
>
> If the monthly rate is a twelfth of the annual rate, it will compound
> to more than the annual rate.  But chances are it won't be.

IF.com set it so that the AER for both monthly and annually is the same.

The only problem I had with Intelligent Finance was that they wouldn't open
an ISA without a minimum deposit of £1, I ended up having to call them and
get the call centre agent to speak to the regulation team to find out what
to do before they would give me the account number that had to be quoted on
the transfer authority as my ISA was fully subscribed for the current year
as the transfer is carried out direct between ISA providers for it to remain
within the rules.

Chris