Using a current ISA to fund another ISA 30 January 2006 at 1:25PM edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings 7 replies 840 views

fayraz

Hi,

I have a Halifax ISA Saver with an interest rate of 3.70% but want to transfer £3000 into a Halifax ISA Saver Direct with an interest rate of 5%, is there any problems doing this?

dunstonh

no. You just to go the new provider and tell them you want to transfer your existing ISA to them. The full value will then be transferred over and it will not use your £3000 allowance.

Do not do the transfer of funds yourself otherwise it will use this years allowance.

BigDunc

I did the very same thing with my Halifax ISA two or three months ago, just rang them up and asked for the account to be converted. From memory it took maybe 10 minutes at the most.

STRAWB

My wife has £13000 and i have £4000 in halifax isa only paying 3.85% would i be able to transfer the whole amount or just £3000?

dunstonh

STRAWB wrote:

My wife has £13000 and i have £4000 in halifax isa only paying 3.85% would i be able to transfer the whole amount or just £3000?

The whole value.

STRAWB

Will i still get the full 5% as i thought it had to be in there a full year?

dunstonh

STRAWB wrote:

Will i still get the full 5% as i thought it had to be in there a full year?

If you are on a deal which has a tie in, then a transfer would terminate that deal and the penalties appropriate to that deal would apply.

So, if it said you had to be there a full year to get 5% and you transfer before that full year, then you are not going to get it.

regularsaver1

You can re-designate your existing book based isa to the isa saver direct - without opening a new one

or you can open a new isa saver direct as long as you have not funded the other isa within the same tax year

You dont need to transfer as same company - they can just redesignate

but you can't do it for the fixed rate isa's