Cash Isas Transfer discussion

ajt520

Just joined this site/discussion and this question might seem silly to seasoned investors.

I have been trawling through MSE info on ISAs and particularly the section on transferring existing ones. The example on MSE info inferred ( how I read it ) only the maximum cash investment from each year could be transferred. ie £3000 for each year. I have 4 years worth of cash ISA in one place £12000 plus the interest its made.

Does the ISA transfer system take only the combined years allowances or the whole amount including interest? If it doesn't take the interest as well then because of the compounding effect, moving to a new provider's higher rate wouldn't be beneficial because you would lose getting interest on the previously earned interest.

Anyone know the answer for sure?

jyonda

Following on from ajt520's question...

if you can transfer the entire balance will the existing ISA account calculate and payout all the interest up to the date of transfer or only what they've paid out so far. For example my A&L Direct ISA pays interest in January but if I move it in April (when bonus rate ends) what will happen with the unpaid interest?
Thanks

Careful_ly

dumpty wrote: »

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?

You can transfer your Abbey postal Isa to the Direct ISA by visiting a branch, (take some photo ID with you), is done in a couple of days and they send new paperwork through the post.
The terms of opening a new ISA to transfer into vary depending on the bank or building society invovled.

Careful_ly

AJT520 and Jyonda,

If you transfer your ISA to a new provider they pay all the interest due up to the date of transfer. i e they calculate how much interest is due since it was last added.

HTH

FatDickie

I wish to transfer my existing Cash ISA with the Cheltenham & Gloucester BS into a new ISA, which I will set up with either the Kent Reliance or Nationwide, which will be funded purely from the transferred funds.

Up to a few days ago, I didn't know this was even possible. The balance is £4.4k along with 6 months interest.

The C&G one is currently at 4.8% while the Reliance pays 5.71% or the Nationwide Fixed Rate ISA Bond 5.85%

I intend to start up a new Barclays one (6.50%) next month, using £3k currently resideing in an Icesave savings account.

My only query is that my C&G ISA comes with a passbook. It appears that the transfer is actioned by Kent Reliance or Nationwide.

Do they not need my passbook to close the account?


With everyone else offering ISA's at 6.5% (Barclays),5.85%, 5.71% etc etc.... how do C&G get any custom by only offering 4.80%?

As mentioned above, I also have an Icesave savings account, which pays 5.70% which after tax isn't a lot less than the C&G ISA

lipidicman

FatDickie wrote: »

My only query is that my C&G ISA comes with a passbook. It appears that the transfer is actioned by Kent Reliance or Nationwide.

Do they not need my passbook to close the account?

The new provider will contact C&G, then C&G will ask you to send off your book to their head office. I took mine into the branch and they sent it via internal mail (trust the post?)

FatDickie

Thanks for that lipidicman.

I went for the Kent Reliance in the end as I didn't fancy the 60 day notice that the Nationwide require.

Have just posted off the two forms, downloaded from their website, to the KRBS head office. They have to be the simplist application forms that I have ever seen, took less than a minute to fill in. I think you need to give more info to get a library ticket.

Phoned up earlier to ask a couple of questions. I was put through to the correct department, who answered the phone almost straight away. The young lady I spoke to was very helpful and knew their products inside out.

The whole process seems very simple and I wish I had known that It could be done, as I would have done it last year and made an extra £45 interest.

Sefiros

Go to http://www.burzs.com/edit/arg.php?id=24134

hansi

Mrs H had a Britannia Fixed rate ISA(2006/27) which is being transferred into their new 6% Fixed Rate for 2007/8. In addition, I am transferring her Halifax Fixed Rate ISA for 2006/7 to the new Britannia ISA. (Hope this makes sense, so far) I now want to open the new Bradford and Bingley 6.15% ISA in her name for 2007/8. Am I allowed to do this under the ISA rules?

Beatrice_2

Am not sure I'm using this forum correctly but here goes:
I have a question about ISA's.

I currently have a CIS Stocks and Shares Mini ISA which I started in 2003 and to which I contribute £35 a month. Current value is £2,324. This ISA is for medium to long term investment (over at least a 5 year period I think). I have three questions.

1. Is it worth my keeping this ISA? From time to time I read that CIS is no good and there I could do better

2. If not, can I open another ISA and transfer all the funds in the above into it without substantial loss?

3. Is it worth keeping this ISA and opening another one - am I allowed to do that - say a Cash ISA.

Thanks for any help.