ISA Rules?!
Nettie-noo
Forumite 13 Posts
Hi
I have what I thought was a SIMPLE question that I just put to my Financial Adviser. He answered it with 'Im not an expert but...' Needless to say he is no longer my Financial Adviser!
Ok, the question: Each year I set up a new Cash ISA and deposit the max allowed into it of £3600. The following year, I look for a better paying ISA and transfer the old one. Sometimes I look to transfer a couple of old ISA into better paying ones. I have just been told by one provider (HSBC) that I cannot TRANSFER more than one ISA a year!!!!??? I know I cannot set up more than one new cash ISA per year but thought you could TRANSFER as many as you like?! PLEASE can someone advise on this.
Many thanks!
I have what I thought was a SIMPLE question that I just put to my Financial Adviser. He answered it with 'Im not an expert but...' Needless to say he is no longer my Financial Adviser!
Ok, the question: Each year I set up a new Cash ISA and deposit the max allowed into it of £3600. The following year, I look for a better paying ISA and transfer the old one. Sometimes I look to transfer a couple of old ISA into better paying ones. I have just been told by one provider (HSBC) that I cannot TRANSFER more than one ISA a year!!!!??? I know I cannot set up more than one new cash ISA per year but thought you could TRANSFER as many as you like?! PLEASE can someone advise on this.
Many thanks!
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Personally, I think you're correct... You can't pay new money into more than 1, but I don't know of anything to stop you transferring as many as you like.
CC
You are free to transfer any/all of your contributions as many times as you like within a tax year, and you can even split previous years' contributions into different providers (this year's however must be kept together until April 5th then they become previous year's along with the rest.)
Providers, however, are not obliged to accept transfers - it is this that HSBC are alluding to? They don't accept them? Or they perhaps impose an interest penalty on withdrawals/transfers out?
-o I am humble -o You are attention seeking -o She is Nadine Dorries
If you saw a tied financial adviser, then he/she is only able to give advice on their product range so if it was a bank adviser then what they are saying is correct for them. If it was an IFA then you would get the right answer. This is one of the reasons the FSA has proposed that Tied advisers, like those at banks and insurance companies will no longer be able to call themselves advisers any more.
Any adviser should know the ISA rules inside out. Out of all the investment products out there, advisers do more ISAs than anything else as its the first choice product for investing 95% of the time.
[edit]
yes you can transfer this years ISAs.
http://www.hmrc.gov.uk/leaflets/isa-factsheet.pdf
You are also able to transfer money saved in the current tax year. Such transfers must be the whole amount saved in that tax year in that ISA up to the day of the transfer. Once the money is transferred, it is treated as if it had been invested directly into the new ISA in that tax year. You are then still able to save up to the full remaining balance of your £7,200 annual ISA investment allowance in that tax year, including up to £3,600 in a cash ISA.
Ho ho ho I didn't read his sentence properly. Damn this weather. Heat heat heat, then thunder and rain, tomorrow I'm thinking SNOW!
Too many people dont realise the difference or dont understand the difference. Plus, many tied agents are very coy in saying they are tied. Resarch carried out last year showed that around 70% of people that sought advice from a tied agent thought they were seeing an indpendent.
The FSA hasnt helped with depolarisation muddying the water between sales and advice. However, they do seem to have realised this now and current proposals under the RDR (to come in next year) have IFAs being the only ones that will be able to be called advisers. Tied agents and multi-tied will not be able to use the term adviser and will not be able to present their products as advice. It will be presented as sales. Long over due.