Transfer or Withdraw my ISA? A few days! Eeek.

ClassicClairey · 2 April 2013 at 3:42PM

Hi everyone!
I'm new at this, please be gentle!

Last April I took my first ever ISA with the Co-Op .. its a cash ISA. Being new and not knowing what the heck I was doing, I realised EVENTUALLY! that the % was awwwful.

I paid into to the limit £5640
When I realised how LITTLE it made me that year, I withdrew some of it.

Off the top of my head there is approx £3700 in there now.
There are a few days left to do something.. (if I have this right??)

I have been looking through Martins advice and am thinking if I am QUICK (as in go in to the bank and apply) .. I could Withdraw that money (from Co-op ISA)
and put £2500 (the min) into Martins recommended Santander 2.5% Easy Access ISA.

Then just leave that money there until next year. (when the % drops, and switch to something better) ...

I'm hoping to do that BEFORE the 5th April so its still in 2012 tax year. (would that work?)..

Just me withdrawing it from Co-Op ISA and paying it into a new Santander one?

Or would I HAVE to 'Transfer' (I dont think there is enough time to make it in the 2012 tax year)

Would that work?
Is it worth me doing?
Is there time?

That was my big question. :rotfl:

My little question is...

Another easy access ISA Martin mentioned was the Cheshire BS 2.3% AER.

IFF I did the Santander thing.. I could use the remaining £1200 to pay into a 2013 (after April 6th?) ISA.
(min £1000)

So I would have two ISA in 2 different years.. 2012 (santander?) and 2013 (Cheshire BS) ..

Would this work?
Have I understood this?
Again, do I HAVE to 'transfer' .. or can I just withdraw it? (I havent LOST anything by the looks of the rotten %)

do I have time?

SORRY!! for all the babble.. I'm desperately trying to 'Get it'

:o

I really appreciate any replies.

thumshie · 2 April 2013 at 3:47PM

As you paid in the full amount, you can't withdraw and then repay into a new account as you have 'subscribed' the full amount.

Furthermore, you can only subscribe to one cash isa a year, so you either have to 'transfer' the full amount or nothing.

There is nothing to stop you transferring the full amount, as it doesn't have to complete by the 6th April anyway.

come the 6th April you can open a new Cash isa as long as you don't pay any more into the co-op or santander if you transfer...

gkerr4 · 2 April 2013 at 4:25PM

yeah - as above - you don't need to do anything as you have already subscribed the full amount for a cash ISA in this tax year - to be honest, unless you needed the money, withdrawing it earlier int he year was a mistake and you shouldn't withdraw any of it now.

YOu can transfer it - either this year or next, but the difference is, if you transfer it - you still have your full allocation for £5640 (or whatever it has been increased to for the new tax year) for next year to save also.

badger09 · 2 April 2013 at 4:36PM

Is your Co-op ISA instant access?

If it is then

1) apply for Santander Direct ISA Saver Issue 1 and ask them to transfer in your Co-op ISA

2) from 6th April you can pay up to £5760 into your Santander ISA. You can pay in anything from £1 up to the whole £5760 between 6th April 2013 and 5th April 2014

The Co-op will calculate interest up to the date of transfer & add it to your savings. Santander will calculate interest @ 2.5% (for a year) on the amount that's been transferred in + the amount of you pay in (which can be up to £5760)

If you find a better rate later on (I'm betting you probably won't) you can ask the better rate provider to transfer your Santander ISA for you.

You can only pay (new money, not transfers) into 1 cash ISA at a time.

Don't try to transfer any ISAs yourself!

Does that help?

Transfer or Withdraw my ISA? A few days! Eeek.

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