Unofficial transfer between ISA accounts

Grizedale_Girl

I have held one Cash ISA account for several years. I would like to open a different Cash ISA account with Barclays in which to invest this year's ISA allowance. It is not possible to transfer money from previous years' ISA accounts to the Barclays ISA account. However, am I legally allowed to withdraw 3600 pounds from my previous years' ISA account into my current bank account, then move the money into my new Barclays ISA account?

tanith

I have a feeling the Barclays Isa doesn't allow transfers in ... There are Isa's that do allow transfers though but you don't transfer the money yourself when you open the Isa (if it allows transfers in) you fill in a form and they do the the transfer for you.. If you take the money out of the Isa wrapping you lose the tax free benefit..

fullstop

Grizedale_Girl wrote: »

I have held one Cash ISA account for several years. I would like to open a different Cash ISA account with Barclays in which to invest this year's ISA allowance. It is not possible to transfer money from previous years' ISA accounts to the Barclays ISA account. However, am I legally allowed to withdraw 3600 pounds from my previous years' ISA account into my current bank account, then move the money into my new Barclays ISA account?

Yes you can withdraw from your old account and pay it into the new Barclays ISA, but you would you would be better off if you can find an account which accepts previous years transfers Manchester Building Society has a decent rate at the moment and accepts previous years transfers.

Baldur

fullstop wrote: »

Manchester Building Society has a decent rate at the moment and accepts previous years transfers.

It offers a decent rate on the Premier ISA 45 Issue 1, but the 45 day notice period that is required for withdrawals/closure should be noted.

willo65

yes you can move from one to another in this way and if you aren't going to use this years allowance then there is no reason not to. it might be worth checking with current ISA provider see if they have anything better will save paperwork etc.

Porcupine

If I understand the question correctly, Grisedale Girl wants to open an ISA with £3600, and transfer in her previous years' contributions as well. If the new bank won't allow transfers this won't work, because £3600 is the maximum you can pay into a cash ISA, and by withdrawing money from the old ISAs it no longer is ISA money so you use this year's allowance.

If, on the other hand, you had say £200 in previous years' ISAs and wanted to add £100, you could withdraw the £200 and pay £300 into a new ISA. It really depends on your circumstances... is there absolutely no chance at all you'll have more money to pay in this year? You aren't likely to have a bonus from work or an Auntie Mildred in poor health? Also work out the difference in interest between the no-transfers-in account and the transfers-allowed account. You may find the difference is only a pound or two, at which point it might be worth going with a slightly lower rate but keeping this year's allowance intact in case you have more cash this year to pay in.