Cash Isas Transfer discussion

iamphil

I already have an Alliance & Leicester cash ISA from last year. If I decide to put this years allowance into the same account, but subsequently transfer the lot to another supplier, will I be charged the transfer fee once or twice?

If it's once then I'll put this year's allowance there. If it's twice then I'll pick another ISA.

Just while I'm here... When I got my ISA last year it was at 5.25% I think. Will I now be getting 5.4% because that is the current offering, or am I being hopelessly optimistic?

jimclark1967

iamphil wrote:

I already have an Alliance & Leicester cash ISA from last year. If I decide to put this years allowance into the same account, but subsequently transfer the lot to another supplier, will I be charged the transfer fee once or twice?

You'll only be charged once

iamphil wrote:

Just while I'm here... When I got my ISA last year it was at 5.25% I think. Will I now be getting 5.4% because that is the current offering, or am I being hopelessly optimistic?

As far as I'm aware the A&L Direct ISA was launched in February at the current rate of 5.40%

If the account you opened last year was the normal branch based A&L Cash ISA then you'll certainly be getting less than 5.40%. In this case you should open a Direct ISA with this year's subscription then transfer your existing ISA to the Direct ISA by giving A&L a ring as described here:

http://www.alliance-leicester.co.uk/savings/index.asp?page=direct-isa-userguide#transferFunds

This internal transfer will not attract the £25 transfer fee since this is only for transfers to anoter institution.

:j

brandoni

We have a new financial priority and must stop paying our monthly sum into our Direct Line tracker ISA. Is it worthwhile to leave it be, or would we be better off moving it as we dont need the lump sum?

david78

In Martin's article he says under The Saving.

"A full £21,000 in Northern Rock’s very poor 3.75% interest instant access cash-ISA would earn just £2,450 interest, compared to over £3,500 in Abbey."

I wish or is this over a number of years.

lipidicman

Look at the table below that. Its for 3 years 21000*0.055*3 = 3550 ish!

david78

Oh yes, I see. Thanks lipidicman.

cheersthanksbye

I saved 3k in the last tax year with an ISA I have with Smile. I wish to transfer this 3k to the First Direct account and was hoping that I could add this year's 3k allowance on top of this. So by October, I want to have 6k in the FD account and then transfer to a better rate (when the rate drops).

Am I OK to do this? Applied for the FD account and got the transfer forms though. They are not helpful!

Thanks in advance,

thor

Essentially you want to transfer twice within a tax year. I can't see a problem. I have not read anything that prohibits your plan of action. Of course once you have added the 3K you want be able to do so again until next April but I think you know that already so I would go ahead and do it.

shropslad

Cheers, You are only allowed to put 3K into your First Direct ISA. If you transfer your Smile ISA to them then that is all you will be able to contribute. They do not allow the course of action you are proposing. I thought of the same senario as you but was told it was a non-starter.

cheersthanksbye

So is this just with the FD ISA or do all banks not allow this. The thing is that in Martin's article, he says that if you had saved the maximum allowance since ISAs started, you would have 21k now.

OK, FD only allow 3k in their ISA. But say you had 21k (bulit up from all the years) could you transfer the total amount to another provide (who will let you save more than just 3k)? Hope all this makes sense - I am a bit confused!