Cash Isas Transfer discussion

orainsear

BiscuitLily wrote:

Is this right? Sorry to question you but it conflicts with other advice I have been given/read.

I currently have £100 in a halifax cash isa, which I have paid £1000 into this financial year. I want to open the A&L isa at 7% (I am happy to open the current account too), but it says that I can't transfer. Whilst I am happy to withdraw my £100 from halifax and close that account, can I open the A&L isa this financial year, and (if it should magically appear) pay in up to £2000 before April 7th? My concern is that the A&L application form asks me to declare that I have not paid into a cash isa this year.

Yeah just to clarify - I think I was a bit ambiguous about the investing elsewhere statement - you can't subscribe to two seperate mini cash ISAs in a single year - but you can subscribe to one and then trasfer to another, and top up to the £3000 limit.

It's a real shame that you can't transfer into that A&L ISA!

greengills

If after the first year a mini cash isa has earned interest of say 150pds and the isa is left with the provider is the next yrs interest payable on the full 3150pds or is interest only paid on the initial 3000 investment.

hansi

Yes, it's payable on the balance i.e.interest will be paid on the £3150.

Kazza242

hansi wrote: »

I've just had my maturity letter from Halifax for my 5% fixed rate ISA giving me various options. One is to transfer it into their ISA Saver Direct currently paying 5.30%. However, Kent Reliance paying 5.71% is very interesting but don't know a lot about them. Anyone dealt with them? Also do Halifax charge for transferring Cash Isa's?

I've had the same letter, as I fixed one of my isa's last year. I am going to choose the option which transfers it into an ISA Saver Direct. If you don't make a choice and return the letter the isa will be converted into a variable rate ISA saver paying a derisory 4.00%.

I intend to transfer my ISA Saver Direct to another provider, but while that is being processed I'd prefer that the isa was earning 5.30% interest instead of 4.00%. Halifax do not charge for transferring isas.

hansi

I'm transferring mine into the Britannia Fixed Rate ISA at 6% for one year.

Nurdis

Sorry to ask such a simple question, but what exactly is an ISA? and what are the benifits?

I currently just have a normal bank account with HSBC and have had this for years with approx £7000 in doing nothing. I have been told by my parents that i should be making better use of this money and the word ISA has been mentioned.

Would one of you mind telling me what i will gain and lose from moving all or part of my money into an ISA, and will i still be able to get at my money if needed without too much trouble?

Thanks for any help, i really am ignorant with this stuff. :money:

Ian_W

Nurdis wrote: »

Sorry to ask such a simple question, but what exactly is an ISA? and what are the benifits?

Read the ISA FAQ's at:
http://forums.moneysavingexpert.com/showthread.html?t=35681
and also Martin's articles on the savings and investment section of the site.

In brief an ISA allows you the interest on cash savings tax free so that the 20% isn't deducted at source by the bank/bs and if a higher rate taxpayer you don't have to pay another 20% later on. Even if you are a non-taxpayer they are useful as they can retain tax free status in the future when you may become a taxpayer.
The limit for cash is £3K per tax year and you could get most of your savings in them within 2 months as the year end is shortly upon us. There is also an allowance for stocks & shares type investments but you really need to read up on this yourself.

Nurdis

Thanks Ian, appreciate your help.

Kazza242

MSE members looking to open a new ISA for this tax year or next, or those transferring in existing ISA balances may find THIS thread useful. It lists the best mini cash ISAs for:

• New ISA money (i.e. ISAs that don't accept transfers in)
• Fixed rate ISAs (for new money)
• Variable rate ISAs that accept transfers in (of existing balances)
• Fixed rate ISAs (for one and two years) that accept transfers in
• Mini Cash ISAs that have strict conditions applied.

dumpty

I am not familiar with the rules on transferring existing ISA funds across to a new provider (or a different product with the same provider) to get a better interest rate.
I have got an Abbey Postal ISA (Issue 1) which, after 3 phone calls, I eventually found is currently paying 5.2% on balances up to £8999.99 and 5.35% on balances of £9000.00 and above.
Looking on Money Supermarket, it shows that Abbey also have a Direct ISA, which is currently paying 5.5% on balances up to £8999.99 and 5.75% on balances of £9000.00 and above (but it does say that these rates include a 0.5% bonus until 1 May 2008).
Although I have put the full £3000 into my Abbey Postal ISA for the current tax year, can I ask Abbey to switch my existing Postal ISA across to their Direct ISA with immediate effect, to take advantage of the higher interest rates (or would I have to wait until the next financial year)?
On Money Supermarket, some ISA providers state that they do not allow transfers in. However, for those that DO allow transfers in, will they generally allow you just to transfer your current balance across from your current provider (without putting any new money in) or will they generally insist on having new money paid in as well?