Transferring last year's ISA - very confused

nooneshuffle

I guess I am asking what is the best ISA to transfer last year's ISA into, which is with Barclays and running at a negligible 0.5%.

I have a Golden ISA with Barclays for this year's allowance, but want to do something with last year's. I was told originally by Barclays that I could transfer it to the Golden but when it came to it I couldn't, and also into the Natwest e-isa, resulting in the same story. I have now become confused and am looking for any advice.

Thank you!

rb10

The Halifax ISA Direct Reward lets you transfer in, and has a fixed rate of 3%.

However - you can only manage on the phone/online, you must have at least £1000 to transfer, and you can only make a maximum of four withdrawals.

But, on the plus side, if/when your Barclays Golden ISA's rate drops below 3%, you will be able to transfer that into the Halifax ISA and earn 3% on that as well.

nooneshuffle

Thanks very much! That sounds perfect. Much appreciated.

Sorry to be a bit thick, but if it's fixed, does that mean I can take it all out this time in May next year?

rb10

nooneshuffle wrote: »

Sorry to be a bit thick, but if it's fixed, does that mean I can take it all out this time in May next year?

The interest rate is fixed, but unlike most other accounts with fixed interest rates, you can withdraw money or transfer the ISA elsewhere at any time during the year with no notice required.

The 3% interest rate lasts for one year.

Pssst

Halifax or first direct...fixed rate isas for the next 12 months. I too was being ripped off by YBS and Nationwide who had both dropped their rates to something criminal like 0.1 %.

nooneshuffle

Hi - sorry again, but here, in the Halifax t&cs for the direct reward, it says that you cannot apply if you have funded a cash isa this year?

Applicants must not already have a cash ISA that has been funded in this tax year. If you do, this application can not proceed.

focus888

nooneshuffle wrote: »

Applicants must not already have a cash ISA that has been funded in this tax year. If you do, this application can not proceed.

if you have funded it this year is there no way to transfer it? thanks

nooneshuffle

Thought I'd communicate, that despite the stumbling block on their site about not being able to proceed because i have already funded an isa this year, after speaking to them direct, I can transfer last year's allowance into its 3% fixed isa. Thanks again to rb10.

Pssst

Whoops,i think ive boobed. I opened the halifax isa and transferred two low paying isas to it. I have also applied for another ISA. I now suspect im not entitled to another !! i thought that as i haddnt used up the 09/10 isa allowance, i could still open another as well as the transfer to the new account...am i right/wrong/in trouble? Who checks how many isas youve got and what happens if you have erroneously opened more than one in the same tax year?

Baldur

Pssst wrote: »

Whoops,i think ive boobed. I opened the halifax isa and transferred two low paying isas to it. I have also applied for another ISA. I now suspect im not entitled to another !! i thought that as i haddnt used up the 09/10 isa allowance, i could still open another as well as the transfer to the new account...am i right/wrong/in trouble? Who checks how many isas youve got and what happens if you have erroneously opened more than one in the same tax year?

As long as you haven't paid any new money into the Halifax Cash ISA there's no problem - transfers have no effect on your annual allowance. You can open any number of ISA accounts in a tax year but can only subscribe (pay new money into) to one.

ISA providers are subject to HMRC audit procedures - if you have subscribed to two Cash ISAs, contact the HMRC ISA helpline for advice, they are aware that mistakes can happen:

Getting advice
If you have any questions about the tax rules for ISAs

• call our ISA Helpline on 0845 604 1701 (Monday -Thursday 8.30-5.00, Friday 8.30-4.30).

Please have the information about your ISA available when you call.

Pssst

Baldur wrote: »

As long as you haven't paid any new money into the Halifax Cash ISA there's no problem - transfers have no effect on your annual allowance. You can open any number of ISA accounts in a tax year but can only subscribe (pay new money into) to one.

ISA providers are subject to HMRC audit procedures - if you have subscribed to two Cash ISAs, contact the HMRC ISA helpline for advice, they are aware that mistakes can happen:

Thanks,,yep,im clear,,opened new ISA,transferred two duffers to it,opened new one with yet another provider,dumped my 09/10 allowance in it.

If you did accidentally open too many isas,do you know if HMRC systems would automatically trap you and if so,would they impose a penalty of some kind?