I'm hot for that Lloyds 6.5% offer but don't have don't have the £9000 required.

Although I will have from April. Would the ISA rules would allow me to transfer it?

e.g. from 6th April 08 top up NS&I to over £9000, then transfer it to Lloyds. Is this allowed? Cheers.

According to the Lloyds TSB Fixed-rate ISA webpage, the 6.5% for balances of £9k+ is good until May 31st. In theory, that would mean you could pop along to Lloyds TSB on April 6th, and get them to transfer your two years' worth of NS&I ISA in addition to next year's ISA allowance (which I understand will be £3600) to make a balance in excess of £9k which will then qualify for the 6.5%.

Alternatively, you could add, say, £3600 to your NS&I ISA, then go into Lloyds at some point prior to May 31st and ask them to transfer the whole thing (or at least £9k of it) into a Lloyds TSB FRISA (Fixed-rate ISA).

As I understand it, when transferring an ISA, you specify the %age of the ISA you'd like to be transferred (which could be 100%, in which case, I assume, the other party -- NS&I in this case -- would close your ISA with them).

I hope this addresses your questions.

Thanks OJ.

There are so many confusing little rules on ISAs. I've transferred shares ISAs before and dealt with the %age stuff; never transferred a cash ISA before.

Well, I've just checked the T&Cs on Lloyd's site: "You cannot open a Fixed Rate Cash ISA where you have already opened or contributed to a Cash ISA (held either with us or another provider) in the same tax year (unless you transfer the whole account into this one)"

So it seems I can do it either way: add money to NS&I first then transfer 100% OR transfer 100% then add money to Lloyds. As to which way is better (faster)..? No sense in me doing anything before 6th April anyway.