transfer an isa

susanann_2

If I have used my Cash ISA Allowance for this tax year(Barclays) which you cannot transfer into, can i still transfer another Cash ISA I have into another Cash ISA provider which has a better rate than I am currently getting. This ISA is from previous tax years. Abbey have told me you can only open one Cash ISA per year but one is a transfer so I am confused.

debbie42

A transfer isn't the same as opening a new one. What you are suggesting is perfectly legitimate.

TomsMom

This is exactly what I am doing. Used this year's allowance at Barclays but transferring my previous years' ISA, which are currently with Abbey, to another provider. As debbie42 says, you aren't opening another one this year, you are transferring - not the same thing.

caveat_emptor

susanann wrote: »

Abbey have told me you can only open one Cash ISA per year but one is a transfer so I am confused.

From my own experience it's unlikely that the Abbey person you spoke to knows what they're talking about.

isofa

caveat_emptor wrote: »

From my own experience it's unlikely that the Abbey person you spoke to knows what they're talking about.

LOL and highly likely would have to agree.

Just as everyone says, you can transfer as many cash ISAs you like to new providers during any period, there are no restrictions, as long as new monies aren't being introduced.

But you cannot subscribe to more than one cash ISA a year. Subscription means paying in up to the cash ISA limit of £3600 per annum.

susanann_2

Thanks, that is exactly what I thought a transfer is not the same. There wording though on the declaration you sign though is as follows. I have not subscribed and will not subcribe to another cash ISA in the same tax year as I subscribe to this Cash ISA. This is confusing

TomsMom

Are you transferring from Abbey to another provider or to Abbey?

Abbey's transfer in form does state I have not subscribed and will not subcribe to another cash ISA in the same tax year as I subscribe to this Cash ISA but as the heading on the form clearly states Transferring in existing cash ISA savings from another provider to an Abbey cash ISA then there's no problem. If I remember correctly the same was stated on the form for my new provider when I arranged transfer from Abbey. It's probably standard.

susanann_2

I am transfering from another provider to the Abbey for there 6% rate, I am not happy about this declartion though.

TomsMom

Susan - I, and many other MSE'ers are transferring away from Abbey (frequently known as Shabby Abbey because of their abysmal service and incompetence). If you search this site for "Abbey" I am sure you will find many threads backing this up. There are other providers who can offer a better service - on recommendation from someone on here I have opted for Newcastle ISA plus which also pays 6% on balances over £3,000.

At the end of the day it's your choice but maybe give it a bit more thought and consider another provider (although A&L don't fare much better than Abbey with their CS), and ask on here about people's experience of whichever provider you are thinking of.

Somewhere there is information about ISA best buys with transfer in but I can't find it at the moment, perhaps someone will come along who knows.