A couple of ISA transfer questions..

blans

Ok First of all how is posible that someone would have way over the 3600 in an ISA account? would this be from acumulated transfers and does this complete balance earn tax free interest?

Also My tax haven isa is now at a rubbish rate (surprise huh?) and am wanting to open a natwest e-isa and transfer it into there. So I put a cheque of 500 into my tax haven on friday (in branch) which has not left my current account yet to put my tax haven upto 3400 .. I want to transfer this balance but I am not sure if I need to wait for the cheque to clear so I can fill out the transfer form or start the ball rolling now.. also does it ask for a balance on the transfer form or can you only transfer the whole balance?

cheers

mike.

Lokolo

You really shouldn't have paid the £500 by cheque, but nevermind can't do much about that at the moment. You should wait until it clears, and look at the statement to see what date the money actually is on the statement. If it ends up saying 6/4/09 then it will count as this tax years allowance (meaning you can only top up £3,100 for the rest of this tax year).

I would wait until it is cleared before transferring though.

On transfer forms it asks for the amount to be transferred. Approximate, but I always put '(all)' next to the amount just to make it perfectly clear.

e.g.

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- Amount to Transfer: ~£3600 (all) -

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But yes original question, complete balance earns tax free interest, meaning after around 10 years you can have about £40-45k earning tax free interest! (£3600 x10, plus interest over that period, interest doesn't count as allowance!)

blans

I did question the teller as to whether the cheque would be on 08/09 allowance, which she assured me it would be .. so will not be to happy if it is not.. although to be honest I am unlikely to to use all 09/10's allowance as I can only save about £100 of my wages a month anyway...

thanks for advice...

Lokolo

Every little helps.