ISA's. I'm a bit confused, can anyone give some advice?
 

i'm after starting up a new cash ISA as my current one (NS&I) has a shockingly low rate of interest, but where i'm getting a bit lost is i like the look of this one askBM | Savings | Internet Savings | ISAs | 1 Year Fixed ISA (Monthly) but it doesn't allow transfering my NS&I balance to it. new money only as they call it.

so, can i withdraw the money from the NS&I ISA and us that to start it up? i assume there's nothing wrong with this but can i have 2 cash ISA's running? one would have a couple of quid in and the new one would recieve any contributions.

the other option is closing the NS&I account down, but as it's into the new tax year can i do this and then open another cash ISA? i've not made any contributions this year (although would added interest be classed as a contribution?)

or should i just go for this one that transfers it all over for me? Abbey Direct ISA

the only thing with the first one is it's fixed, and although i can't see interest rates getting lower i like the idea that i know exactly what i'm getting.

all confused, please help:)

You could encash the NS&I now and invest £3,600 into the BM ISA. Or encash £3,600 from the NS&I and put it in the BM ISA and leave whats left in the NS&I - although you could not put more money into the NS&I ISA as you've used your allowance with BM.

You can transfer previous years ISAs to a new provider (Assuming they take the transfer) and start a new ISA for this year.

The fixed ISA lets you know what rate your going to get and others offer a fixed rate plus a bonus variable rate. With interest rates only having another .5 to go to hit zero they only have one way to go from there. Variable bonus basically means your gambling on the interest rates to go up (which they will eventually)

thanks edd, that's about what i thought. it's just you've worded it better than i was thinking it:)

cheers