Closing an ISA after transfer

GingerBob_3
GingerBob_3 Posts: 3,659 Forumite
in Savings & investments
Moving my ISA savings from First Direct to Virgin Money to get their 1.01 %. I'm not using the ISA transfer service (too much messing about). I'll be emptying the FD ISA. Am I obliged to close it?
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Comments

  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    GingerBob wrote: »
    Moving my ISA savings from First Direct to Virgin Money to get their 1.01 %. I'm not using the ISA transfer service (too much messing about). I'll be emptying the FD ISA. Am I obliged to close it?
    You won't be allowed to empty it by making a withdrawal as you intend to do, according to your T&Cs. So, yes, you'll be obliged to close it.
  • GingerBob_3
    GingerBob_3 Posts: 3,659 Forumite
    YorkshireBoy wrote: »
    You won't be allowed to empty it by making a withdrawal as you intend to do, according to your T&Cs. So, yes, you'll be obliged to close it.


    I'll take the money out to my FD current account first, then send it to the new ISA. I'm just wondering about the tax position if I left it open.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Name Dropper First Post First Anniversary
    GingerBob wrote: »
    I'll take the money out to my FD current account first, then send it to the new ISA. I'm just wondering about the tax position if I left it open.
    I think you should read your account T&Cs. You won't be able to remove all of it...no matter where you withdraw it to.
  • karcher
    karcher Posts: 2,069 Forumite
    Combo Breaker First Post
    C&P from MSE ISA Transfer guide:

    Don't take the money out , ask the new provider to transfer it for you

    Transferring an old ISA is a technical process, it's not just like switching a normal savings account. Yet as long as you abide by the golden ISA transfers rule, it should go smoothly.

    If you want to transfer, never, ever, ever, withdraw money from a cash ISA!
    You'll immediately lose all the lasting tax benefits.

    Instead, speak to the new provider and fill out an ISA transfer form. Your new company should then sort it all out, including moving the money over for you, keeping your ISA cash permanently tax-free.
    'I'm sinking in the quicksand of my thought
    And I ain't got the power anymore'
  • dales1
    dales1 Posts: 230 Forumite
    First Anniversary Name Dropper First Post
    It's usually much better to use the transfer service, to avoid wasting your ISA allowance.

    If you cash in and reinvest, you need to keep the reinvestment within your ISA allowance that is remaining this financial year.

    Dales.
  • GingerBob_3
    GingerBob_3 Posts: 3,659 Forumite
    YorkshireBoy wrote: »
    I think you should read your account T&Cs. You won't be able to remove all of it...no matter where you withdraw it to.

    Forgot to say, I'll be taking the money out in this tax year, and reinvesting it after 4 April or whatever the date is. Why would I not be able to take it all out to my current account? I've done that previously. What if I needed access to all the funds?
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    GingerBob wrote: »
    Why would I not be able to take it all out to my current account?
    Because the FD Cash ISA T&Cs say you can't. Do you have a different set of T&Cs to those published on their website?
    What if I needed access to all the funds?
    At the risk of giving you a massive clue, you can't be short of £1.
  • GingerBob_3
    GingerBob_3 Posts: 3,659 Forumite
    YorkshireBoy wrote: »
    Because the FD Cash ISA T&Cs say you can't. Do you have a different set of T&Cs to those published on their website?At the risk of giving you a massive clue, you can't be short of £1.


    The T&Cs say that I can.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Name Dropper First Post First Anniversary
    GingerBob wrote: »
    The T&Cs say that I can.
    That's good then. You have a different set of T&Cs to those published on their website. But why would you not want to close it having emptied it?
  • GingerBob_3
    GingerBob_3 Posts: 3,659 Forumite
    YorkshireBoy wrote: »
    That's good then. But why would you not want to close it having emptied it?


    I've had it open for a few years, sometimes using it, sometimes not. If they were to up the interest rate at some point in the future it would still be available. However, let's clarify my question: do HMRC permit you to hold any number of empty ISAs?
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