Question on transferring Cash Isas.

Butterfli

Please bear with me on this as I'm not the sharpest knife in the drawer with finance and am struggling to manage my affairs alone now.

I currently have a Cash Isa with Nationwide which I want to transfer to take advantage of Natwest's new rate.
I haven't used my current year's Isa allowance, much to my shame, but I want to use it to open an ISA with another bank, i.e. then I'll have two ISA accounts.

My dilemma is will the transfer to NatWest be considered to be using my 2008 allowance. I'm getting mixed messages from NW and don't want to get it wrong.
Would I be better off putting my 2008 allowance in the same ISA? My reluctance to do so is that it would put me over the £35,000 limit with one bank and I was trying my best to avoid this.

Any advice on this would be most welcome.
Many thanks
Butterfli

Baldur

Butterfli wrote: »

I haven't used my current year's Isa allowance, much to my shame, but I want to use it to open an ISA with another bank, i.e. then I'll have two ISA accounts.

No problem, there have been periods since ISAs began when I've had five or more accounts (I have since consolidated most of them and currently only have three).

My dilemma is will the transfer to NatWest be considered to be using my 2008 allowance.

Not as far as the regulations are concerned - see HERE, Chapter 11.

flossy_splodge

You really need to be in close control of this - you MUST be clear that when you go to the institution you want to transfer your ISA into, (from what you write, that's Natwest) they are clear you are not opening a NEW ISA but transferring. They will try hard to get you to open a new 08/09 ISA but you must be clear you are just transferring existing money. I would firmly suggest you take in an instruction in writing to confirm your wishes.
Where you then choose to utilise THIS years ISA is a separate issue and completely up to you.
Good luck.:eek:

Doomcow

similar question,

i have an isa i opened this year with yorkshire (5.5%), so far its not full (say 1k in it).

could i transfer that isa to, eg, natwest to take advantage of hire rate and fill the remainder of the isa (the 2.6k)?

that and when im payin in, is it easier/quicker to make a transfer from my bank to ybs, or to use my card on the ybs site to make a deposit that way?

Baldur

Doomcow wrote: »

i have an isa i opened this year with yorkshire (5.5%), so far its not full (say 1k in it).

could i transfer that isa to, eg, natwest to take advantage of hire rate and fill the remainder of the isa (the 2.6k)?

See the link in my post above, Chapter 11 of the HMRC guidance covers ISA transfers & subscription after transfer.