Can I do this with my ISA?

hebron

Hello everyone.

I have £25,000 in a ISA with the Nationwide paying .50%.
Am I able to transfer £15,000 to one of their fixed rate ISAs and than transfer the remaining £10,000 to another provider?
I do not want to put in all in a fixed rate and tie it up, but I don't want to leave £10,000 paying under .50% interest either.

Many thanks for your advice.

Lokolo

Yes thats fine but not all providers who accept transfers accept partial transfers (which is what you're planning to do)

hebron

Is it a classed as a partial transfer then if I move my money to a fixed rate account with the same provided and than transfer the remaining after wards to another provider.

Thanks,

alastair_h

If you transfer out of the ISA to a fixed rate account it will loose it's tax free status - forever. The key to the question is does the new ISA provider "allow partial transfers in"? Once you know this then you could proceed and split your ISA.

Remember to transfer correctly not withdraw the funds as they will loose their tax free status.

Baldur

alastair_h wrote: »

If you transfer out of the ISA to a fixed rate account it will loose it's tax free status - forever.

From the OP

Am I able to transfer £15,000 to one of their fixed rate ISAs....

@hebron

As has been posted, partial transfers of previous tax years' funds are permitted under HMRC guidelines but ISA providers are not obliged to accept them - current tax year's Cash ISA funds can only be transferred whole.

If Nationwide will accept a partial transfer into one of their FRISA 'Bonds', there should be no problem transferring the remainder to a different provider, as the transferred funds will then constitute the full balance of the variable rate Nationwide account.

libra10

We are in a similar situation. My OH and I have separate Nationwide ISA bonds and were looking for a partial transfer to another provider. We found that certain Nat West ISAs accept partial transfers but you also had to open another account with them (if you weren't already a customer). This would have involved 4 new accounts for OH and myself.

We have decided to transfer a partial amount of the Nationwide ISA to Abbey. They definitely accept partial transfers and we have received Welcome Packs this morning. Up until this week the ISA bonds were earning around 6.15%. We will now have to wait until the Abbey transfer is complete and then place the remaining ISA cash in another account.

Good luck