Multiple Isa Query

dudes_2

I opened the following ISAs in these years
2007-2008 - Barclays ISA
2008-2009 - Lloyds TSB
2009-2010 - Barclays Golden ISA

But, I paid in as follows (bit of confusion with the bank!)
2007-2008 - £3000 into Barclays ISA
2008-2009 - £600 into Barclays ISA
2009-2010 - £3600 in Barclays Golden ISA

So, at the moment, I have not exceeded any paying in limits, and I have only opened one ISA per year. So, my Lloyds ISA is empty.

My question is. Am I allowed to transfer the money from my Barclays ISA to my Lloyds ISA this year? There aren't any rules against that, right? Or would it count as "paying into 2 seperate ISAs?"

Lokolo

You cannot BACS transfer or anything, you have to go to lloyds and ask for an ISA transfer form, fill all the details in, and let them do the transfer.

But you can do that.

Mikeyorks

dudes wrote: »

So, my Lloyds ISA is empty.

Am I allowed to transfer the money from my Barclays ISA to my Lloyds ISA this year?

You can do as you propose. But the Lloyds ISA will likely have lapsed as you haven't funded it in the year. So you'll need to re-activate it ..... and that's unlikely to be at the same interest rate as initially.

stv1x

Related question....what happens at the end of the year regarding the interest earned for the previous 12 months, do you have to withdraw it or can you leave it in?

If you can leave it in won't that result in you going over your limit if you've invested the maximum, i.e. £3600 pa?

TIA

Lokolo

You can leave it in.

Interest doesn't count towards allowance.

rb10

stv1x wrote: »

Related question....what happens at the end of the year regarding the interest earned for the previous 12 months, do you have to withdraw it or can you leave it in?

If you can leave it in won't that result in you going over your limit if you've invested the maximum, i.e. £3600 pa?

TIA

Interest doesn't count as part of your allowance, so put in £3600 at 3% for a year, and next year you'll carry over £3708 (3600+3%), all of which can be kept in the ISA for subsequent years.