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  • FIRST POST
    • MSE Sally
    • By MSE Sally 11th Apr 14, 12:12 PM
    • 69Posts
    • 27Thanks
    MSE Sally
    Tell us you cash ISA questions
    • #1
    • 11th Apr 14, 12:12 PM
    Tell us you cash ISA questions 11th Apr 14 at 12:12 PM
    Hi folks,

    We've just updated our Cash ISA guide to include FAQs at the end. We'd love to know if we've missed anything so if you've got an ISA question we've not already answered, post it below and we'll try to help.

    Thank you

    MSE Sally
Page 14
    • StuartWR
    • By StuartWR 19th Aug 16, 11:09 AM
    • 2 Posts
    • 0 Thanks
    StuartWR
    I just started a thread with a cash ISA question before I saw this thread. My question thread has the title 'Can I transfer money from an ISA more than once in a tax year?' (I'm a new user and so not allowed to post links).

    I think what I want to know is can I transfer the same money more than once a year if I move the full balance? I moved money from an old PO ISA earlier this month to a new issue PO ISA and am now considering a Leeds BS fixed rate ISA. The PO reduced their rates.
    Last edited by StuartWR; 19-08-2016 at 11:10 AM. Reason: clarification
    • djnield
    • By djnield 19th Aug 16, 5:44 PM
    • 19 Posts
    • 3 Thanks
    djnield
    How to transfer a Cash ISA to a regular Savings Account?
    Following the current recommendation of opening a Shawbrook Savings Account (£1000 minimum opening deposit) I want to end my Post Office ISA.

    I always thought you couldn't simply close down an ISA without interest penalties so, unless that's changed, how can I transfer my current ISA balance to a new ordinary savings account?
    • colsten
    • By colsten 20th Aug 16, 10:29 AM
    • 8,526 Posts
    • 7,115 Thanks
    colsten
    You have to withdraw the money from your ISA if you want to deposit it into a non-ISA account. Whether there's an interest penalty depends on the type of ISA. There is no penalty for withdrawals from instant access ISAs but there will be one if the ISA is fixed term. Which type of ISA do you have? What do your T&Cs say?

    I can't comment on "the current recommendation of opening a Shawbrook Savings Account" as I am not aware of it. A quick glance at Shawbrook rates suggests, however, that there are still better rates available in various current accounts. A lot depends on the amount of money involved.
    Last edited by colsten; 20-08-2016 at 10:32 AM.
    • lisyloo
    • By lisyloo 23rd Aug 16, 2:43 PM
    • 21,022 Posts
    • 10,028 Thanks
    lisyloo
    How long does cash ISA transfer money "dissappear".
    I mean how long between it going out from the outgoing account to appearing in the new one?
    I remember in the old days this used to be done by cheque accompanying ISA paperwork, but ad assumed they would have improved on that.
    • badger09
    • By badger09 23rd Aug 16, 3:59 PM
    • 4,975 Posts
    • 4,175 Thanks
    badger09
    How long does cash ISA transfer money "dissappear".
    I mean how long between it going out from the outgoing account to appearing in the new one?
    I remember in the old days this used to be done by cheque accompanying ISA paperwork, but ad assumed they would have improved on that.
    Originally posted by lisyloo

    https://www.gov.uk/individual-savings-accounts/transferring-your-isa

    I've had mine take anything between 3 days and a couple of weeks
    • lisyloo
    • By lisyloo 23rd Aug 16, 7:16 PM
    • 21,022 Posts
    • 10,028 Thanks
    lisyloo
    That's for the overall process. I'm talking about the actual financial transfer, which used to have to be by cheque through the post.
    • masonic
    • By masonic 23rd Aug 16, 7:24 PM
    • 9,126 Posts
    • 6,271 Thanks
    masonic
    That's for the overall process. I'm talking about the actual financial transfer, which used to have to be by cheque through the post.
    Originally posted by lisyloo
    Some providers still use cheques. The last transfer I did was between two major banks and went electronically. IIRC the money was credited the same day my old ISA was closed.
    • lisyloo
    • By lisyloo 23rd Aug 16, 7:36 PM
    • 21,022 Posts
    • 10,028 Thanks
    lisyloo
    Thanks, it's just a little disconcerting when it's nowhere :-)
    • rhp485
    • By rhp485 10th Oct 16, 4:04 PM
    • 4 Posts
    • 0 Thanks
    rhp485
    More than one fixed rate cash ISA
    My wife and I have a number of fixed rate cash ISA's streaching over a fixed period of one or two years. Can we put all of them into the highest rate fixed rate cash ISA account?
    • badger09
    • By badger09 10th Oct 16, 5:22 PM
    • 4,975 Posts
    • 4,175 Thanks
    badger09
    My wife and I have a number of fixed rate cash ISA's streaching over a fixed period of one or two years. Can we put all of them into the highest rate fixed rate cash ISA account?
    Originally posted by rhp485
    Not entirely sure what you're asking but here goes..

    Obviously, you cannot merge your own and your wife's ISAs

    There is nothing in HMRC ISA rules which prevents you putting several cash ISAs together. The only rule is that all current year subscriptions (ie new money paid in) must be kept together.

    Most fixed rate/fixed term ISAs allow only a short window to either pay new money in, or to arrange for other ISAs to be transferred in, typically 2 - 4 weeks. So, unless your 1 & 2 year FRISAs mature close together, you won't be able to get them all together immediately.

    However, what you could do, is have the first to mature transferred into an instant access ISA and then as the others mature, arrange for them to be transferred to the same instant access one. When they have all matured, you could then arrange for the transfer to the best paying fixed rate you can find.

    If that isn't what you were asking, please spell out what you want to do
    • BazBoy
    • By BazBoy 21st Dec 16, 10:40 AM
    • 1 Posts
    • 0 Thanks
    BazBoy
    Two new cash Isa's in a tax year.
    Hi, I've read on the forums that it is ok to open 2 isa's in one tax year. One can be funded by new money up to the allowance and one by transfer from a previous years isa.
    My problem is that I opened a new one earlier this year with new money and now another which I'm transferring an old fixed rate isa that has expired to. I think this is ok but unfortunately when opening it I thought it required an initial deposit and transferred a nominal £40 in which is new money although does not take me over the allowance.
    Question is if I now remove the £40 will I still be within the rules ? I've tried calling the HMRC Isa help line but I could tell that the guy didn't have a clue. His response was just leave it and we'll contact you after April 2017.
    • le loup
    • By le loup 21st Dec 16, 11:57 AM
    • 3,515 Posts
    • 3,303 Thanks
    le loup
    Strictly you have broken the rules. However for £40 and within your annual limit it will not be a problem.
    HMRC may contact you in 2017 and tell you not to do it again but you will not be in serious trouble.
    • bigfreddiel
    • By bigfreddiel 21st Dec 16, 9:23 PM
    • 4,225 Posts
    • 1,951 Thanks
    bigfreddiel
    Hi, I've read on the forums that it is ok to open 2 isa's in one tax year. One can be funded by new money up to the allowance and one by transfer from a previous years isa.
    My problem is that I opened a new one earlier this year with new money and now another which I'm transferring an old fixed rate isa that has expired to. I think this is ok but unfortunately when opening it I thought it required an initial deposit and transferred a nominal £40 in which is new money although does not take me over the allowance.
    Question is if I now remove the £40 will I still be within the rules ? I've tried calling the HMRC Isa help line but I could tell that the guy didn't have a clue. His response was just leave it and we'll contact you after April 2017.
    Originally posted by BazBoy
    Have you paid new money into two different cash ISAs?

    If yes you've broken the rules

    If no you're okay

    It's that simple

    Cheers fj
    • bigfreddiel
    • By bigfreddiel 21st Dec 16, 9:24 PM
    • 4,225 Posts
    • 1,951 Thanks
    bigfreddiel
    Hi folks,

    We've just updated our Cash ISA guide to include FAQs at the end. We'd love to know if we've missed anything so if you've got an ISA question we've not already answered, post it below and we'll try to help.

    Thank you

    MSE Sally
    Originally posted by MSE Sally
    MSE Sally, could you correct the title of this thread please.

    Cheers fj
    • CovWoody
    • By CovWoody 22nd Dec 16, 3:36 PM
    • 1 Posts
    • 0 Thanks
    CovWoody
    First ever post ! My wife has a fixed ISA, first paid in year 2012/2013 and which has been with same provider until now. It expires in Jan 2017 , but with such low rates we want to cash it in and pay into fixed 1 year bond with TESCO. Is there any penalty is we do this ?
    • escapee
    • By escapee 22nd Dec 16, 8:35 PM
    • 295 Posts
    • 116 Thanks
    escapee
    First ever post ! My wife has a fixed ISA, first paid in year 2012/2013 and which has been with same provider until now. It expires in Jan 2017 , but with such low rates we want to cash it in and pay into fixed 1 year bond with TESCO. Is there any penalty is we do this ?
    Originally posted by CovWoody
    As long as you move the money after the fixed rate has expired in January, you wouldn't incur a penalty.
    • BodMor
    • By BodMor 16th May 17, 12:48 PM
    • 16 Posts
    • 1 Thanks
    BodMor
    Martin's (he is quoted as the person who updates the page) best buy advice doesn't appear correct on the fixed term ISA best buys page as of 16/05/2017: " At the moment, there aren't ... any four- or five-year ISAs that beat the three year ISA listed."


    The Virgin 5 year product, including the early transfer out penalty, appears to me to beat every other fixed term product in the table over any time frame except for the one year Bank of Cyprus product for one year.


    So unless you know you want the money back at the start of year two, shouldn't the advice be take out the five year product knowing that the longer you hold it the better it gets?


    For example if it turns out that you need the money at the start of year 4, the three year ISA from Coventry BS gives 1.4%, while the Virgin 5 year surrendered early gives 1.46% (according to the tables quoted).


    The difference in this case is only £37 (ie £888 vs £851 interest), but I'd rather have the increment than not.


    Is the table wrong, am I reading it incorrectly, or is the advice wrong?


    Posted in the spirit of trying to help all readers not as a smartass, and from someone equally disposed to any listed provider.
    • coleman45
    • By coleman45 20th May 17, 10:02 AM
    • 1 Posts
    • 0 Thanks
    coleman45
    sorry new to this -so dont know if in the right place.
    Additional allowance isas - there is a lot of discrepancy in what I have been told by various building societies / banks - even as to what they call them. One society calls them inheritance isas and says you can only have one and if you have a number of isas involved with different societies they all have to be combined into this one inheritance isa - also that it will always carry the tag of inheritance isa and can't be transfered by the new owner into a different cash isa. A bank I have spoken to says there is no problems like that as any isas with them just get changed into the name of the new holder. Lots more variations. Can banks etc just make up their own rules as to how they treat this problem or is there supposed to be some sort of conformity. And why do you not see the interest rates posted?
    • isasmurf
    • By isasmurf 20th May 17, 12:10 PM
    • 1,719 Posts
    • 738 Thanks
    isasmurf
    sorry new to this -so dont know if in the right place.
    Additional allowance isas - there is a lot of discrepancy in what I have been told by various building societies / banks - even as to what they call them. One society calls them inheritance isas and says you can only have one and if you have a number of isas involved with different societies they all have to be combined into this one inheritance isa - also that it will always carry the tag of inheritance isa and can't be transfered by the new owner into a different cash isa. A bank I have spoken to says there is no problems like that as any isas with them just get changed into the name of the new holder. Lots more variations. Can banks etc just make up their own rules as to how they treat this problem or is there supposed to be some sort of conformity. And why do you not see the interest rates posted?
    Originally posted by coleman45
    The official term is "additional permitted subscriptions". Banks find it easier to monitor the additional subscriptions by having a separate product.

    The rules are that you can choose to use the additional permitted subscriptions with the same bank(s) that the deceased held their ISA(s) with, up to the value of the ISA with each provider, or choose to have the additional permitted subscriptions with another provider. Once you have made an additional permitted subscription, all further additional permitted subscriptions for that ISA must be with the same provider. Any unused allowance for additional permitted subscriptions for that ISA cannot then be transferred to another provider.

    Once you have deposited the money in an ISA under your name it is treated as previous year subscriptions and can be transferred under normal ISA rules.
    • ade1982
    • By ade1982 24th May 17, 6:02 PM
    • 53 Posts
    • 14 Thanks
    ade1982
    Just have a question with the LISA / S&S ISA and a cash ISA.

    I opened a S&S ISA, and have paid into it within the last week with Moneyfarm.

    I wanted to open the regular saver ISA with Ford, but it said I couldn't, as I had already opened an ISA in this year. I presume this is a cash ISA.

    I want to open a LISA (either cash or S&S) ISA for retirement later this year, possibly with Nutmeg. I had intended to put new money in it in Feb-Mar 2018 (totally new money, from an existing maturing savings account)

    Am I allowed to do all three?
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