Tessa to an ISA

Tom_Jones

My mother has about 12k in a Tessa, is she allowed to transfer this into her ISA, she has already used her 3k allowance for this year on the ISA. If it's possible how would she arrange the transfer ?

Thanks

isasmurf

You mean your mother has a TESSA only ISA, can she transfer this into her Cash ISA. The answer is yes.

Kazza242

Tom_Jones wrote:

My mother has about 12k in a Tessa, is she allowed to transfer this into her ISA, she has already used her 3k allowance for this year on the ISA. If it's possible how would she arrange the transfer ?

Thanks

She can transfer her Tessa-only ISA balance into her mini cash ISA, provided her mini cash ISA accepts transfers. Not all mini cash ISA's do, so it is best to check first.

A Tessa-only ISA should really be thought of as a mini cash ISA now. Therefore, provided the provider she wishes to transfer to accepts transfers, there is nothing to stop her moving it into her existing mini cash ISA or transferring it into a different mini cash ISA with another provider.

The important thing to remember is do not withdraw the money from the Tessa only ISA, otherwise it will lose it's tax-free status. Your mother must approach her mini cash ISA provider (as they are who she wishes to transfer to) and ask them to arrange the transfer. She will need to provide them with her Tessa-only ISA account number and sort code and they will handle it from there.

david78

Of course she might just have a matured TESSA which has been converted to a taxed savings account, in which case there's not much that can be done. Best to check out what the account is.

Tom_Jones

As far as I know it's a nearly or possibly matured Tessa (b4 the ISA's were introduced) that my mother has, and her ISA provider is the Halifax

isasmurf

Well in that case it sounds like there is nothing you can do. The last TESSAs matured in April 2004 and when a TESSA matured you had 6 months to transfer it into a Cash ISA, so unfortunately your mother is too late to keep the tax free status of the TESSA which she would of lost when it matured.

But I would suggest you check what account it is in, as it certainly won't be a TESSA account. When it matured it would have been transferred to a normal savings account, so it could be earning a low interest rate.

tonyg_2

Kazza242 wrote:

She can transfer her Tessa-only ISA balance into her mini cash ISA, provided her mini cash ISA accepts transfers. Not all mini cash ISA's do, so it is best to check first.

A Tessa-only ISA should really be thought of as a mini cash ISA now. Therefore, provided the provider she wishes to transfer to accepts transfers, there is nothing to stop her moving it into her existing mini cash ISA or transferring it into a different mini cash ISA with another provider.

The important thing to remember is do not withdraw the money from the Tessa only ISA, otherwise it will lose it's tax-free status. Your mother must approach her mini cash ISA provider (as they are who she wishes to transfer to) and ask them to arrange the transfer. She will need to provide them with her Tessa-only ISA account number and sort code and they will handle it from there.

I would like to transfer (part of) a TOISA account (currently with Kent Reliance) into my existing (5.2%) A&L cash ISA account. Am I able to do this? (I thought a TOISA had to go into another TOISA?)

isasmurf

TOISAs are cash ISAs. Technically the TOISA label no longer applied to the account after the end of tax year in which you opened it. From that point on it is a Cash ISA and can be transferred to any other Cash ISAs (that accept transfers)

Kazza242

tonyg wrote:

I would like to transfer (part of) a TOISA account (currently with Kent Reliance) into my existing (5.2%) A&L cash ISA account. Am I able to do this? (I thought a TOISA had to go into another TOISA?)

Yes, you can. As said above, TOISA's are really Cash ISA's now and as A&L accept transfers, you can go ahead.

A&L Transferring existing ISA funds webpage

Kazza242

Tom_Jones wrote:

As far as I know it's a nearly or possibly matured Tessa (b4 the ISA's were introduced) that my mother has, and her ISA provider is the Halifax

As said above, if your mother didn't transfer it into a TOISA (Tessa Only ISA), it will have lost it's tax-free status. I assumed she had already rolled it into a TOISA, when the TESSA matured.

The provider of your mother's TESSA should have written to her to inform her that it was maturing - she would have then had 6 months to reinvest it. Some providers sent a list of reinvestment options to their customers.

If it had been left in a TESSA and is now in a tax paying (low interest) account - you could maximise the interest earned by transferring the money into a high interest account.

tonyg_2

Kazza242 wrote:

Yes, you can. As said above, TOISA's are really Cash ISA's now and as A&L accept transfers, you can go ahead.

A&L Transferring existing ISA funds webpage

Just checked Kent Reliance only allow full transfers out, not partial transfers out. A bit mean as I wanted to maintain an account with them.