Moving from one ISA to another

Badgergal

Hello all,

I have a mini cash ISA with Natwest. I have paid a little bit of money into it this tax year (nowhere near the maximum), but would like to switch to A&L online for a better interest rate.

I know about the transfer form etc from reading the articles - but can't figure out if I have to wait for the next tax year before opening the A&L ISA and transferring the funds over, seeing as I've already paid into the Natwest ISA this tax year.

Incidentally, does anyone know if Natwest charge a fee for transferring?

Thanks

EDIT: Sorry just realised there is a board for ISAs which this should be on!

PBA

You can open the A&L ISA now and transfer the Natwest money into it. However you wouldn't be able to pay any money into the A&L ISA this tax year, so if you've got money to put in make sure you put it into Natwest first. I'll probably be flamed for this, but I wouldn't suggest A&L as the best place for your ISA tho, as they charge an exit fee and their past performance suggests they'll offer a good rate for a few months and then drop it. I believe the Halifax ISA doesn't charge an exit fee and is paying 5% at the moment, which is probably a better deal in the long run.

ReportInvestor

Is it definitely correct that you can't add to the A&L/Halifax ISA in this tax year after you have transfered it?

Even if you haven't invested your full £3K annual allowance?

I would think you could. If I'm wrong then your plan of investing more money first in NatWest is sensible.

masonic

PBA wrote:

...but I wouldn't suggest A&L as the best place for your ISA tho, as they charge an exit fee...

A&L do not charge an exit fee - that charge was dropped last year.

innovate

I tend to agree with ReportInvestor - I also thought that once you have transferred your ISA, you can still top it up to the maximum, without any penalties. But check with your new provider.

I have just transferred my A&L ISA (full 2005/6 amount already paid in) to the Halifax because I found the A&L Customer Service abysmal beyond belief and I wasn't going to put up with any more of it, not even for the extra bit of interest they pay. I had fully expected that I would have to pay an exit charge (my T&Cs said so) but surprisingly the ISA was transferred without a penny's deduction.

I seem to remember having read elsewhere that they now dropped their exit charge - worth checking what their current rules are. That's if you really want to go with them - - I wouldn't go near A&L ever again and have been trying to close all my accounts with them for the last 6 weeks. I have now got all my money out but getting the accounts actually closed proves to be massively difficult because they don't seem to understand how to close accounts.

Not all's rosy about the Halifax, either, though! They are trying to make you sign that you want to open an ISA for the current tax year "and all future years until further notice", and that you had not subscribed to another ISA in the current year. I had to amend their T&Cs in several places before I could sign them. They accepted my amendments without any questions.

Badgergal

Thanks all.

I was wary of A&L because my mum had a bad experience a couple of years ago, where they messed her accounts around, but was hoping they might have got their act together...

Maybe I should try the Halifax instead..or maybe give up the idea of saving alotgether and put the cash in my flexible mortgage because the interest rate there is slightly higher, however I can't get an answer as to how easy it is to get the money back when you want it....