ISA's - what can I do

inkie

Can anyone shed some light on the options I have.

I have a Tessa only ISA - with £4000+ in, which I cannot add to and is due to mature in June 2006.

I currently have FD ISA - commenced this tax year which is 'active' in that I am paying into it every month.

I also have a NSI ISA (4.2%) not currently paying into this as opened it with a lump sum in 2003 and so is just sat there. As I have already opened a ISA (FD) this tax year - have I forfitted my option to open a new one (??Halifax) to transfer the NSI ISA into (which NSI do without charge.

I think that this ISA business clicks and then I suddenly feel that I am confused with the whole thing.

Any help appreciated.

Cheers

System

Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere (please see this rule) so this post/thread has been moved to the ISA sub board, where it should get more replies. If you have any questions about this policy please email [email="andrea@moneysavingexpert.com"]!!!!!![/email].

Milarky

inkie wrote:

Can anyone shed some light on the options I have.

I have a Tessa only ISA - with £4000+ in, which I cannot add to and is due to mature in June 2006.

This is classed as an 'ISA' now that the 'Tessa' element has ceased and was rolled over by you. It can thus be transferred in future just as any 'ordinary' ISA can into another provider's mini cash ISA.

I currently have FD ISA - commenced this tax year which is 'active' in that I am paying into it every month.

Your options here are to reach the annual subscription limit before April next year. I think I am right in saying that you may transfer the ISA during the year before you have fully subscribed and may then subscribe the remaining annual amount to the new ISA [I could be wrong but I think that was confirmed elsewhere*] Anyway, once the FD rate drops after six months you want to move [i.e. transfer] to a better rate as quickly as you can.

I also have a NSI ISA (4.2%) not currently paying into this as opened it with a lump sum in 2003 and so is just sat there. As I have already opened a ISA (FD) this tax year - have I forfitted my option to open a new one (??Halifax) to transfer the NSI ISA into (which NSI do without charge.)

I think the point about this ISA is that the rate is not good and there is nothing to prevent you transferring it immediately if you can identify a suitable alternative provider [e.g. Halifax Isa Direct].

Also bear in mind that you could open an ISA for [say] the NSI and the FD elements, pay in up to the annual limit and once your fixed period Tessa ISA does mature consider a further transfer to the same account. You would then have all your ISA money in the same place hopefully.

Good Luck

*Yes that is correct. Here is the relevent post:
http://forums.moneysavingexpert.com/showpost.html?p=355696&postcount=1

Transfering Current Years Subscriptions
If you want to transfer savings you have made during the current tax year, they must be transferred in full. If you transfer this years savings but have not subscribed your full allowance, you can top-up your ISA with your new provider. Transfers do not count as subscriptions.

jimclark1967

Basically you can "open" as many ISAs as you want for transferring old money into but can only have this year's savings in one place at any one time. :j

JC

barak

inkie wrote:

I also have a NSI ISA (4.2%) not currently paying into this as opened it with a lump sum in 2003 and so is just sat there.

As has been said, you can transfer any existing 'Tessa only' or other ISA, but be careful to make it clear to the Halifax or whoever you want to transfer to - that you want to transfer the ISA from somewhere else, and they will do it. Don't close the old one yourself or you will lose the tax benefit altogether.