Changing Bank Accounts ... Numpty Questions

[mike9009]

Hi

I have most my banking needs with a certain High Street Bank. I have had the main current account for almost 25 years. I also have a cash ISA and Stock and Shares ISA with said bank.

I want to change to get better rates - I have seen an account which appeals. My current provider pays virtually nothing for my current account or cash ISA... and simply diminishes any interest rates over the years. I have tried searching for answers but cannot find anything which clarifies the 'basic' questions I have.

So my questions are

1. How does my employer know to pay into the new account? From what I have read this happens automatically??
2. I want to transfer my cash ISA too to get a better deal with the new provider. The new provider does not 'do' Stocks and shares ISAs directly - so can I leave that where it is? I presume I cannot add more to this investment in the next year?

I'm a little naïve with all this having never changed my current account and probably some other questions will arise...

Thanks

Edited by mike9009 on Tuesday 29th March 21:56

[trickywoo]

For money going in I'd tell the people paying the new account details. However, it's my understanding that your old bank will be obliged to transfer any payments to your new one for quite a long time so you can see anyone paying you to the wrong account and ask them to change it.

Your direct debits and standing orders will be automatically switched.

You can do what you like with the Isa as long as it remains in an Isa you won't loose your allowance. I.e don't cash it in and open a new Isa, transfer it. That being said the annual Isa allowance, April to April, is pretty high - £15k ish so you'll be doing well if you can use that each year.