07:53 10 September 2013
Reasons why you should transfer your ISA
So you have ventured into the next level of savings by opening a cash ISA account. However, your investment work does not stop there, that is if you want your savings to get better returns to maintain or even increase your profit. Study the market and monitor the interest rates on your current cash ISA.
Procedure on transferring your ISA.
Transferring your ISA account is quite easy but you have to follow the procedure or run the risk of losing its tax-free status or getting even lower interest rates:
As you open a new ISA account request your former provider to issue you a transfer from where you can indicate your new account details. This will guarantee that your ISA account will be treated as a transfer and not as a pure withdrawal or closure of account. Some provider might be willing to do the paperwork involved in the transfer for you.
What is the turn-around time for cash ISA transfers?
The Office of Fair Trading has issued a rule stating that cash ISA transfers should not go longer than 15 days with continuance on the payment of the interest during the transfer period.
This is a welcome development since the old practice could bury your money for a couple of months prior to the new ISA account seeing the light of day.
Acquiring the best cash ISA
The only way you can be sure if you are putting your savings in the best facility is by studying the market and comparing the interest rates. You have to pay attention to two critical issues: Interest rate and the minimum investment that you can invest.
Armed with all the facts, you can now have the cash ISA investment that is just right for you, not more, not less.
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