Icesave fallout - other ISA?

Transalper

The annoying thing is it is going to be easier to wait until the certificate come through before you transfer your ISA lump because of the confusion of having your ISA in a current account (if it was the linked account). The confusion part is NOT helped by untrained staff in the branches and on the end of the telephone who simply cannot digest what we are trying to explain about this compensation. They have never heard of an ISA in a current account. Some haven't a clue about ISAs in general. You have to demand to speak to a team leader/supervisor before any sense is achieved. I now have a roll number ready for my ISA to be tranfered to, and it should not expire in the 30 days that the untrained bank staff will insist will happen.:mad: Also because I am keeping it in the same bank I have been told to just write a covering letter with my certificate rather than needing a tranfer form. I hear some banks are clued up on this Isesave deal while others still need to start issuing the first memo's.

jerrymind

Transalper wrote: »

The annoying thing is it is going to be easier to wait until the certificate come through before you transfer your ISA lump because of the confusion of having your ISA in a current account (if it was the linked account). The confusion part is NOT helped by untrained staff in the branches and on the end of the telephone who simply cannot digest what we are trying to explain about this compensation. They have never heard of an ISA in a current accounts. Some haven't a clue about ISAs in general. You have to demand to speak to a team leader/supervisor before any sense is achieved. I now have a roll number ready for my ISA to be tranfered to, and it should not expire in the 30 days that the untrained bank staff will insist will happen.:mad: Also because I am keeping it in the same bank I have been told to just write a covering letter with my certificate rather than needing a tranfer form. I hear some banks are clued up on this Isesave deal while others still need to start issuing the first memo's.

I will not encourage you to go ahead, as you have already subscribed to an ISA this tax year with Icesave, wait and see how that goes before re-investing anywhere else.

Also,you will need to wait until your funds are released and then find another provider who will accept transfers in. So do agree with most comments but this can be a personal decision based on your financial circumstance.

Broadback

I made an enquiry with a bank, they told me that they would open the ISA for me, I could not open it myself. Once I have the certificate (I wonder how long that will take) from my Icesave ISA I will look for an ISA. The problem is that some of the best will not allow transfers in. I want one that allows transfers in and out, while giving reasonable interest. The idea being to transfer my existing Icesave ISA in and I feel that if you are free to transfer out the interest rate will remain competitive. With interest rates being in suck a state of flux I cannot see much point in looking yet.:(

SGE1

oldfella wrote: »

You cannot subscribe (i.e. put money into) to more than one ISA in the SAME tax year.

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minor correction - you can if you transfer the original amount. What you cant do is subscribe to 2 open ISA.

Can I just confirm - you cannot subscribe (i.e. put money into) two (or more) ISAs simultaneously in the same tax year? But you can do as many transfers as you like?

Transalper

You can open as many ISAs as you want but not put new payments in apart from transfers. You can transfer as many times as you want in a tax year but not put extra money in. Transfering is OK but putting extra money in or starting another and putting even £1 in means you are subscribing to more than one which is not allowed.

jem16

Transalper wrote: »

Transfering is OK but putting extra money in or starting another and putting even £1 in means you are subscribing to more than one which is not allowed.

Just to clarify. After you have transferred you can then pay in the rest of your allowance if you have not used it up yet.

This is the only circumstance in which you might end up subscribing to two different ISAs in the one tax year.

SGE1

OK, so for triple clarification, this scenario is possible, right?

John transfers the balance of a previous cash ISA (from a previous tax year), into a new ISA 'A', in 2008-9. He invests £1000. He then transfers the balance of ISA 'A' into ISA 'B', still in the same tax year. He is still allowed to invest a maximum of £2600. He can transfer ISA 'B' as many times as he likes, between different ISA providers, so long as the total amount of new money he invests altogether during that tax year, is less than £3,600.

Right?

Mikeyorks

SGE1 wrote: »

Right?

Your triple clarification is a bit capable of misinterpretation but ...yes, correct.

However the easiest way to view it all .... is that an ISA which is transferred essentially remains the same ISA. It's just moved to a different provider.

As it's the same ISA then any balance of your allowance which may still be available .... can be paid in with the new provider just as, without question, you would have paid it to the old provider.

And it makes the rule ' you can only contribute to one cash ISA in a financial year' .... much easier to comprehend?

SGE1

Mikeyorks wrote: »

And it makes the rule ' you can only contribute to one cash ISA in a financial year' .... much easier to comprehend?

Yes it does, thanks!