top up over 50s ISA

moneylover

I have a fixed rate cash ISA for four years with this years initial maximum funds in it.
. If I rate no longer on offer) can I then move this portion of the money in the next tax year or am I effectively tied to Newcastle until the four year ISA I initially took out with them expires?

Baldur

If you took out the Newcastle FRISA out since April 6th 2009, then you are only able to subscribe to Newcastle ISA products with the additional £1,500 this tax year.

Will they allow you to add it to your present FRISA or are they saying that you have to open a different ISA with them for the 'top up' funds?

moneylover

Baldur wrote: »

If you took out the Newcastle FRISA out since April 6th 2009, then you are only able to subscribe to Newcastle ISA products with the additional £1,500 this tax year.

Will they allow you to add it to your present FRISA or are they saying that you have to open a different ISA with them for the 'top up' funds?

It is a different product with the same provider the original ISA product is closed. My original ISA was 5% so veryhappy to leave for the four years fix but the extra £1500 would be 3% if not fixed or 2.95% one year fix etc. So am asking if I could move that at some point when something better came along or is it inextricably linked to original funding? Am sure this must be a common question but cannot find the answer easily on the forum...have been back a few pages

Baldur

After the current tax year ends, on 5th April 2010, from 6th April any previous tax years' funds (which would, at that point, include this £1500) can be partially transferred - so it could then be transferred to any provider that accepts partial Cash ISA transfers at any time after the end of the 2009/10 tax year (subject, of course, to any fixed-term restrictions).

moneylover

Baldur wrote: »

After the current tax year ends, on 5th April 2010, from 6th April any previous tax years' funds (which would, at that point, include this £1500) can be partially transferred - so it could then be transferred to any provider that accepts partial Cash ISA transfers at any time after the end of the 2009/10 tax year (subject, of course, to any fixed-term restrictions).

I have only every transferred a complete tax years worthof ISA before. Do most providers accept partial ISAs? Am wondering whether they might put barriers in the way of transferring the £1500s that will be floating around from this year. Cannot make up my mind whether to invest or not - its £3000 as my husband in same position. Have always been keen to fill my ISA cash boots in spite of being only a lower rate tax payer but not so sure about this bolt on.

Baldur

I've only made one partial transfer in the past, that was to Icesave a couple of years ago (had to tell them that partial transfers were possible under the HMRC Guidelines) so I can't speak for the number of providers which will accept them. It's irrelevant in your case, for the below reason:

In effect, if the £1500 (plus accrued interest) is in a separate ISA account from the FRISA, the transfer should be easy as any new provider will not know that it's a partial transfer - you will simply be applying to transfer the full balance of your ISA, number '12345678', to the new provider; no need to mention that it's a partial ISA transfer.

vervin

Can i butt in : i have 2 Isa's Barclays/ Halifax 07and 08 ,can i move them to a better rate [transfer] , i will not have my Isa allowance [ money tied up until Feb 2010] for 09 . Can i do this if i don't start new Isa until 2010

Baldur

vervin wrote: »

Can i butt in : i have 2 Isa's Barclays/ Halifax 07and 08 ,can i move them to a better rate [transfer] , i will not have my Isa allowance [ money tied up until Feb 2010] for 09 . Can i do this if i don't start new Isa until 2010

Of course you can, just select a provider that accepts Cash ISA transfers, complete their transfer forms and let them arrange the transfer(s).

The tax year runs from 6th April 2009 to 5th April 2010, so you could still subscribe your full 09/10 ISA allowance after your cash becomes available in February (as long as it's subscribed before 5th April) if you wish.

vervin

Thanks for the info '' Baldur'' will do xx

moonrakerz

moneylover wrote: »

It is a different product with the same provider the original ISA product is closed. My original ISA was 5% so veryhappy to leave for the four years fix but the extra £1500 would be 3% if not fixed or 2.95% one year fix etc. So am asking if I could move that at some point when something better came along or is it inextricably linked to original funding? Am sure this must be a common question but cannot find the answer easily on the forum...have been back a few pages

If the original ISA you subscribed to is closed you will have to put your £1500 in another ISA with the same provider (if they provide this facility). You can then give the required notice on your fixed rate/period ISA and move it to another provider along with extra £1500.
OR - you can give the notice, move it, then add the £1500 at your new provider.

You can do this whenever you want. The only problem you might come across is that a very attractive new ISA at some huge interest rate will have closed by the time your notice period is up !

moneylover

moonrakerz wrote: »

If the original ISA you subscribed to is closed you will have to put your £1500 in another ISA with the same provider (if they provide this facility). You can then give the required notice on your fixed rate/period ISA and move it to another provider along with extra £1500.
OR - you can give the notice, move it, then add the £1500 at your new provider.

You can do this whenever you want. The only problem you might come across is that a very attractive new ISA at some huge interest rate will have closed by the time your notice period is up !

I think what Baldur says further up the page is right- I can just movve the £1500 when time is right as no one will know its a partial transfer - the point being that I dont want to move the money thats in the fixed rate - that is a good rate and unlikely to be beaten my much during the life of the ISA - rate being 5%

Presumably, Baldur, Newcastle wouldnt point out to the new provider that what looks like a total transfer is in fact only a partial transfer?? Or say that I had to move the whole lot? Its a different ball game from normal isnt it??
Maybe I should give Newcastle a ring but then I dont suppose anyone on the normal helpline would know anyway!!! Anyone got any HMRC contacts!!!
expect am stressing about nothing ....