Cash Isas Transfer discussion

purplestar133

Oh right, thanks-I'll look into it some more.

GSX1400_2

As April approaches, my first ever mini cash ISA is nearing maturity and although the interest rate was good at the time I opened the account, there are now better ones available. Before I get into looking at putting more money away, I'd like to make sure I understand the rules. There is a lot of talk on the website about transfers, subscriptions etc. but not list of rules . . or at least none that I have seen.

Please can someone tell me if the following is correct.

• You can only put £3,000 in a mini cash ISA per tax year
• You can only have ONE mini cash ISA (that you are putting money into) per tax year
• You can transfer from a previous ISA to the current one without affecting your allowance

To give an example, does this mean that I can open a new ISA after April 6th 2006 and transfer the £3,000 (+interest) from my current ISA into the new one and then continue to deposit up to another £3,000 during the tax year 2006/2007?

zag2me

The main thing is you can only put £3000 a year extra into an ISA. I dont think transfering them to different providors makes any difference to your allowance.

Gers

I've just transferred a full £3,000 from a previous years allowance (plus the accrued interest) to the Halifax because of the better interest. My savings for the current year have also been transferred.


As the people on the site say again and again - don't withdraw the money, you need to make sure you do an ISA transfer.

Transfer took 10 minutes on the phone and visit to a Halifax branch with identification documents. So far hassle free.

:j

isasmurf

GSX1400 wrote:

Please can someone tell me if the following is correct.

• You can only put £3,000 in a mini cash ISA per tax year
• You can only have ONE mini cash ISA (that you are putting money into) per tax year
• You can transfer from a previous ISA to the current one without affecting your allowance

Correct on all counts.

To give an example, does this mean that I can open a new ISA after April 6th 2006 and transfer the £3,000 (+interest) from my current ISA into the new one and then continue to deposit up to another £3,000 during the tax year 2006/2007?

Yes, or if you haven't made any deposits this tax year, you can do it now.

There is a lot of talk on the website about transfers, subscriptions etc. but not list of rules . . or at least none that I have seen.

http://www.hmrc.gov.uk/leaflets/isa-factsheet.htm

Jenerally_Confused

Mmm, I've a similar dilemma. I opened and invested £3,000 in a mini cash ISA with First Direct in Nov 05, and as their rate is going to drop soon, I was planning to transfer this to A&L's Direct ISA, however A&L have told me that I can only open one ISA each tax year. Can any one tell me if I can transfer this year's funds please?

grumbler

Yes, you can do this. See: Sticky: ISA Transfer FAQ

innovate

A&L have a - somewhat silly, I think - term: "You can apply for a Direct ISA if.........You have not subscribed and will not subscribe to a Maxi ISA or another Mini Cash ISA in the same tax year that you subscribe to this Direct ISA" (see their T&Cs )

If my memory serves me right, you also have to confirm during the application process that you did not open an ISA elsewhere during the same tax year.

I have no idea why they have this rule - they are effectively cutting themselves out of additional business for themselves.

May be whoever at A&L wrote the T&Cs didn't think this through?

isasmurf

innovate wrote:

A&L have a - somewhat silly, I think - term: "You can apply for a Direct ISA if.........You have not subscribed and will not subscribe to a Maxi ISA or another Mini Cash ISA in the same tax year that you subscribe to this Direct ISA" (see their T&Cs )

If my memory serves me right, you also have to confirm during the application process that you did not open an ISA elsewhere during the same tax year.

I have no idea why they have this rule - they are effectively cutting themselves out of additional business for themselves.

May be whoever at A&L wrote the T&Cs didn't think this through?

It's not A&L's fault. It's part of the ISA regulations that application forms must include this statement. I believe this then means that the saver has signed that they have not subscribed to an invalid combination of ISAs and therefore HMRC can do whatever it is they do to these people if they come across people who have broken the rules.

wench90

I currently have an isa with Abbey which used to have a decent rate but doesnt anymore. i want to transfer this into one of the better accounts, maybe A&L or Halifax. But, i dont really know much about the interest and how it works?

If I transfer the ISA now will I still get the full interest rate in April or will I miss out because it hasn't been in for very long? Will I keep any interest from Abbey or will I miss out on that too because I moved before April? If so, should I keep it with Abbey until April, then move it?

Hope this makes sense!

Any advice would be much appreciated!

Cheers