Cash Isas Transfer discussion

jetfighter

soulandy, you don't need to wait until April to do a transfer. You can transfer out at any time (though do check your current ISA terms to make sure they won't charge you for this) providing your new provider accepts transfers in.

Whatever you do, don't withdraw the funds from your ISA unless you're planning to spend the money now!

What you need to do is an official ISA transfer, which will transfer your current balance to the new provider and treat it as the same ISA, i.e. one in which you have already used up this year's allowance. You will be able to pay the full £3,600 into it as soon as April starts.

You're not allowed to pay into two ISAs in the same tax year, however if you have an ISA with one provider and then transfer it to another, it's classed as the same ISA. You can have one single ISA for any tax year but it can be switched from provider to provider as many times as you like during that tax year.

I hope this makes sense.:rolleyes:

soulandy

thanks jet

Lugh_Chronain

If you wanted to what you could do is transfer the ISA you have now into a new provider and in the new tax year open another one with next years allowance. I did this last year; I transferred last years ISA into Kent Reliance and then opened a Barclays ISA with the new tax year’s allowance. As a result I had two ISA on the go.

You could apply for next years now too but the ISA provider won’t open this for you until the new tax year. You will have to instruct them to do this.

Don't forget you can't transfer into the Barclays ISA.

soulandy

Think i will go to the Abbey with a fixed rate 13 month 6.25%. Looks like a decent deal
Cheers

mister_bojangles

H i Lugh_Chronain
You said that you "have two ISAs on the go". That's confusing. Are you legally allowed to do that? I can assume that what you meant was that you retained your previous ISA account and opened another one, so you are attracting interest on both accounts - although you only make payments into one; like the law allows you to.

bristolleedsfan

sloughflint wrote: »

I am in the process of transferring an ISA for someone. Closing statement from old provider received but a week on, the new provider claims not to have received the cheque.
Am I correct in thinking that I can call the old provider and get them to stop the cheque, issue a new one with adjusted interest figures and ask for cheque to be sent by special delivery?

Mine and other opinions have been that it should be the new provider that should be taking the action that you describe for two reasons.

It is for the person/organisation whom the cheque was sent to who needs to confirm that the cheque hasnt been received.

ISA transfer transactions are completely between the two ISA providers. ( Investor as absolutely no control over how and when the transfers are conducted.)

I once sent a Cheque ( which was a Building Society cheque ) to another Building Society which was claimed not to have been received two weeks later.
Issuing Cheque Building Society stated that other Building Society must confirm non receipt to them, other Building Society then stated that the Cheque was received that day.

garyf_2

I have searched this site and forum, and whilst there is lots of good sound advice about transfer rules, I cannot find anything that describes the position I am in.

During the current (2007/08) tax year I transferred my Cash ISA to a new one being operated by Kent Reliance Building Society. No new cash has been paid into it, only existing ISA funds transferred.

My question is; can I open another Cash ISA in this tax year with another provider, as I have yet to use any of my £3000 allowance? Has the fact that I opened a new account with Kent scuppered my chances of opening another elsewhere, forcing me to pay any new cash into Kent?

boobbby

garyf wrote: »

I have searched this site and forum, and whilst there is lots of good sound advice about transfer rules, I cannot find anything that describes the position I am in.

During the current (2007/08) tax year I transferred my Cash ISA to a new one being operated by Kent Reliance Building Society. No new cash has been paid into it, only existing ISA funds transferred.

My question is; can I open another Cash ISA in this tax year with another provider, as I have yet to use any of my £3000 allowance? Has the fact that I opened a new account with Kent scuppered my chances of opening another elsewhere, forcing me to pay any new cash into Kent?

You can pay into only one new cash ISA each tax year although you can transfer ALL of it to another provider and continue to pay up to that years limit (£3000) at the moment.

You can transfer all or part of previous years ISA's anytime to another provider

As you have not opened a cash ISA this year you can go ahead and open a new ISA with who ever you want and pay up to £3000.

I think it is a good idea to keep some money in an ISA that allows instant withdrawls:T and keep other money in a fixed rate ISA that will pay up to 6.5% but cant be touched for 1 year without penalty

Bob

Lugh_Chronain

mister_bojangles wrote: »

H i Lugh_Chronain
You said that you "have two ISAs on the go". That's confusing. Are you legally allowed to do that? I can assume that what you meant was that you retained your previous ISA account and opened another one, so you are attracting interest on both accounts - although you only make payments into one; like the law allows you to.

Yes that's right! What I did was I transferred my previous years ISA into Kent Reliance then opened a Barclays ISA with this years allowance.

I'm trying to do the same thing for next years too as I’ve already transferred the money from Kent Reliance to Icesave and I'm hoping to open the new Barclays ISA with next years allowance.

The thing I need to find out though is whether I'm able to do this as I presently have an ISA running with Barclays. I need to get that sorted as soon as possible.

Mikeyorks

garyf wrote: »

as I have yet to use any of my £3000 allowance?

That's the critical bit. So you can either open a fresh one elsewhere (time permitting!) and pay into it - or you can put money into the existing one with Kent Reliance.

As you're now into the frantic year-end period .. I would personally add money into the KR one. Then a week or so after 6th April, once things have settled, decide where you want to go with next years allowance (£3.6k) .... and open one accordingly - transferring the KR into it if the rate is better?