Deposits for houses

Currently I have two Instant access cash ISAs with the same provider(plus other investments I'm not touching). The TESSA-Only one is for less than the deposit I want to put on a house.

Now after all the waffle- what do I do about closing the TESSA only ISA? Do I leave the minimum balance in until 31st March (when interest is credited) or will I be credited the full interest to date on closing the account?

Or is this a question I need to ask of my Building society?

If you ask them to close the account and to transfer the proceeds to another account with them, (or elsewhere), they will calculate the interest due to the date of closure and add it to the account before closing it. The same should apply if you take the proceeds as a cheque.

yes, unless there is some other penalty for such closure.

This does't necessarily mean that it is good idea to close it though. You can't move the money into another Tax free account.

HTH

tim

"tim \(moved to sweden\)" wrote in message news: snipped-for-privacy@individual.net

Cheers. This will mean I need to withdraw £abc.de less from my other instant access cash ISA.

Well I only plan on closing it if/when the money is needed for the house purchase, so that won't be a problem. If I withdraw it and he house sale fails, I will have to invest it elsewhere, perhaps in an equity ISA.

Only if I withdraw it, you can transfer your ISAs between providers providing you let the new provider handle the transfer. When I open a new cash ISA next year, if I find a provider with a better rate I will transfer across the remainants of my ISA savings.

As I havn't put any money into any ISA this year I still have the full £7000 allowance. I can invest £3000 of it in a cash ISA.

I just put what I know here just incase anyone else was browsing for similar info!

Thanks again for the help/reassurance.