Put £3600 this year in one ISA, want to transfer another ISA to a different provider

epsilondraconis

Hopefully the answer to this is yes.

I have an ISA from a previous year which hasn't performed well (ISA-1).

I opened another ISA (ISA-2) this year which has a better rate and deposited my £3600 for the current tax year. ISA-2 doesn't allow transfers in.

I have found another ISA (ISA-3) that allows transfers in and I would like to remove the current balance in ISA-1 and place in ISA-3 (this will be a straight transfer and will not be including any of this years' allowance).

Is this possible?

The reason I ask is that the T&Cs of ISA-3 (Principality) states:

"As long as you are subscribing to e-ISA for the current tax year, you may transfer ISAs from previous tax years."

My concern is that I'm not subscribing for the current tax year.

To get around this shoudl I move my money from ISA-1 and ISA-2 (which now includes this years' allowance) and transfer to ISA-3?

Sorry, I was hoping my question would be shorter than that. Thanks in advance for any feedback.

debbie42

According to Kazza's thread, Principality have restrictions on transfers.
"Transfers in are permitted subject to a deposit for 2007/08 ISA year being made simultaneously."

So for that ISA it looks like you can't do what you are suggesting. Not all ISAs have such restrictions: some will quite happily allow transfers of old funds without new contributions.

Oblivion

If it's of any help, my wife and I have just recently completed a transfer of our ISAs into the Newcastle Building Society, currently paying 6% and no requirement to subscibe i.e. they were opened and funded purely with the transfer. It all went very quickly and smoothly too. No doubt there are other equally good providers out there offering similar if not better deals on transfers.

Dave.