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  • FIRST POST
    • grumbler
    • By grumbler 13th Apr 17, 8:38 PM
    • 51,388Posts
    • 21,755Thanks
    grumbler
    Transfer cash ISA without extra contributions in this tax year?
    • #1
    • 13th Apr 17, 8:38 PM
    Transfer cash ISA without extra contributions in this tax year? 13th Apr 17 at 8:38 PM
    I was in the process of applying for a new cash ISA in Coventry BS for transferring my other ISA to it.
    However, at the end of application they say:
    I apply to subscribe for a Cash ISA for this tax year 2017/2018 and each successive year until further notice. I declare that:

    • ..
    • I have not subscribed/made payments, and will not subscribe/make payments, more than the overall subscription/payment limit* in total to a cash ISA, a stocks and shares ISA, an innovative finance ISA and a lifetime ISA in the same tax year;
    • I have not subscribed, and will not subscribe, to another cash ISA in the same tax year that I subscribe to this cash ISA; ...
    However, I have already subscribed to another cash ISA today (Nott BS regular saving one).

    Why can't I transfer my old ISA to Coventry?
    We are born naked, wet and hungry...Then things get worse.

    .withdrawal, NOT withdrawel ..bear with me, NOT bare with me
    .definitely, NOT definately ......separate, NOT seperate
    should have, NOT should of
    .....guaranteed, NOT guarenteed
Page 2
    • eskbanker
    • By eskbanker 18th Apr 17, 1:33 PM
    • 5,266 Posts
    • 5,020 Thanks
    eskbanker
    I too have had a problem with the Coventry. My account is labelled 'dormant' and I tried to pay into it but can't. No explanation on site.
    Originally posted by sashasussex
    There is an explanation on their site, at https://www.coventrybuildingsociety.co.uk/consumer/help/savings/faqs/i-havent-paid-into-my-coventry-isa-for-one-tax-year-or-more-can-i-still-use-it.html
    • isasmurf
    • By isasmurf 18th Apr 17, 1:46 PM
    • 1,719 Posts
    • 738 Thanks
    isasmurf
    For any ISA HMRC requires that your ISA declaration lapses at the end of the first tax year in which you do not deposit any money into it. To make a deposit after this happens you need to reactivate it by making a new ISA declaration that you have not, and will not subscribe, to another ISA of the same type in each year in which you make a deposit into this ISA.
    • sashasussex
    • By sashasussex 18th Apr 17, 3:19 PM
    • 3 Posts
    • 0 Thanks
    sashasussex
    The Coventry account was/is paying a good rate. I have had problems understanding the 'explanations' of the rules that the banks provide. This 'transfer' and 'subscribe' detail is not at all clear. I want to move some 'old' isa money to the Coventry, because if I added my whole allowance for 2017-2018 ie. £20,000 it would take me over the FSA limit insurance of £85,000. Nobody has mentioned this problem. Do isa's have cover over and above this £85,000? I suppose not but the banks don't seem to acknowledge this maybe a problem. I have found no help on the subject of moving the 'old' isa money to another provider. Obviously it complicates the situation even more ,but if you have isa money back to 1999 when they came out you 'could' have numerous accounts with numerous banks . I would like to see some way to keep them joined so you don't forget any and some way to move the money around to accounts which pay you a decent interest rate. As it stands I have to write to the old provider and instruct them to move all or part of the cash amount. Nice problem to have but time consuming.
    • eskbanker
    • By eskbanker 18th Apr 17, 3:36 PM
    • 5,266 Posts
    • 5,020 Thanks
    eskbanker
    As it stands I have to write to the old provider and instruct them to move all or part of the cash amount.
    Originally posted by sashasussex
    You shouldn't do that - transferring money between cash ISAs needs to be initiated by the new provider not the old one, in order to follow the defined process and avoid losing tax-free status. This and many other aspects of using ISAs are covered in great detail on this site at http://www.moneysavingexpert.com/savings/cash-isa-transfers and other such articles, so there is plenty of help on the subject if you look for it.

    The FSCS limit of £85K per institution means that you're best to keep less than this with any one bank or building society but inevitably this safety comes at the price of meaning that your overall pot becomes fragmented.

    If you have more than £85K in cash ISAs, chances are that that money isn't working particularly well for you and is probably losing pace with inflation, given current interest rates - if you wish you can post more details on here and people can make constructive suggestions about what's best to do with it....
    • zerog
    • By zerog 18th Apr 17, 3:58 PM
    • 2,259 Posts
    • 759 Thanks
    zerog
    Basically you have to make a false declaration due to poor wording and/or failure of somebody to consider that you can open a new ISA and transfer old money into it without subscribing, while also subscribing to another new ISA elsewhere.

    I have had to make 1 or more of such false declarations many times in past years, but I have not broken any ISA rules and nothing has ever happened to suggest that I was.
    • sashasussex
    • By sashasussex 18th Apr 17, 4:02 PM
    • 3 Posts
    • 0 Thanks
    sashasussex
    Thank you for that information. I will write to so called 'new' provider. On my money working harder. I agree I probably am not keeping up with inflation. Any suggestions as to what I do with it would be great. I am however 'old' so risk averse and not keen to lock my money up. I have put some in a fixed rate isa for one year. Brexit looms large and things being uncertain what else could I do? Interest rates are checked every so often to keep up with new accounts opening and I do move my money.
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