isa help for new year..

ACID

ok just to clarify and ill give you info from my side

1) one ISA opened 2 years ago Next month this will be the 3rd year...currently only has pennie so WILL close

2) 2nd ISa opened last year, Next month the year will be up, has the full ISA amount of £3600

As per your post

is it best to tranfer this amount to a different providers ISa then top up £5100 from this year?

or

Open a New ISA and put in £5100 BUT ALSO transfer the ISA to a new provider, if the latter is that not effectively opening or subscriving to 2 ISAs??

sorry if ive missed the point somewhere.

ACID

Mikeyorks wrote: »

You can transfer the old ISA (assuming the one you have earmarked accepts transfers in?) ... then add your 2010/11 money to it .... thereby keeping all your funds in the one place (£3600 + £5100 + interest).

Or you can transfer the old ISA and open a different one to put your 2010/11 allowance in.

No difficulties with either route. You can open as many ISAs as time allows in a year ....... you just can't add funds into more than one. A transfer merely moves an existing ISA to a different supplier ..... for all practical purposes it's the same ISA ..... just in a different place.

Ok to go with the scenario of openng 2

One you will subscribe/add funds to
the other wil just be transferrign the amount but will you not accumulate the New interest rate on both?

Baldur

ACID wrote: »

1) one ISA opened 2 years ago Next month this will be the 3rd year...currently only has pennie so WILL close

That one's irrelevant if you are closing it.

2) 2nd ISa opened last year, Next month the year will be up, has the full ISA amount of £3600 is it best to tranfer this amount to a different providers ISA then top up £5100 from this year?
or
Open a New ISA and put in £5100 BUT ALSO transfer the ISA to a new provider, if the latter is that not effectively opening or subscriving to 2 ISAs?

You can do which you like but you will probably find that Cash ISA offers for new money only (e.g. A&L/Santander @ 3.5%) are offering better rates than those which accept ISA transfers.

ISA transfers DO NOT constitute 'opening a new ISA', they are merely transferring your old ISA funds to a different provider.

Personally, I'll be transferring my 2009/10 Cash ISA funds to one provider and subscribing my 2010/11 allowance to a different provider.

Mikeyorks

ACID wrote: »

Ok to go with the scenario of openng 2

One you will subscribe/add funds to
the other wil just be transferrign the amount but will you not accumulate the New interest rate on both?

You will get a new interest rate on both .... but only the same interest rate if you're putting them both to the same place. It's a bit unclear from this :-

2nd ISa opened last year, Next month the year will be up

.... if you added the £3600 before or after 6th April 2009? If before .... then you still have this year's allowance to use (£3600 if under 50 .... £5100 otherwise). But you would need to add that to the existing ISA before transferring it .... as you're not guaranteed to complete the transfer now before 6th April. If after 6.4.09 ...... then you just have the new £5100 to use sometime after 6.4.10.
If the latter you still have the options precisely as my post #2

ACID

Mikeyorks wrote: »

You will get a new interest rate on both .... but only the same interest rate if you're putting them both to the same place. It's a bit unclear from this :-


.... if you added the £3600 before or after 6th April 2009? If before .... then you still have this year's allowance to use (£3600 if under 50 .... £5100 otherwise). But you would need to add that to the existing ISA before transferring it .... as you're not guaranteed to complete the transfer now before 6th April. If after 6.4.09 ...... then you just have the new £5100 to use sometime after 6.4.10.
If the latter you still have the options precisely as my post #2

Thanks for rpelying

I opened it last year (or this tax year lol)
so in April 2010 the ISa woudlve been opened for a year
it has £3600 already reached (under 50 years )

does that help?
i thought i cannot add more funds becasue any new accoutn from april 2010 will now be £5100 and not before?

also thanks I with Natwest for both my ISAs

so ill transfer my existing ISA to another bank and obtain a new rate
and also Open up a new ISA too with higher rate (same bank ? does it make a difference?)

Mikeyorks

ACID wrote: »

so ill transfer my existing ISA to another bank and obtain a new rate
and also Open up a new ISA too with higher rate (same bank ? does it make a difference?)

1. Right that clarifies it ..... so you have an allowance of £5100 available some time after 5.4.10.
2. If you choose an ISA that accepts transfers in ..... you can put the £5100 into that and also ask them to transfer the previous ISA into it. That way you get the new improved rate on all the money.
3. If you choose a new ISA that doesn't accept transfers in .... then you can just put the £5100 of new money into it. And you'll need to find a different one to transfer the old ISA to.

Personally I'd try to weld the money together by finding one that accepts transfers in. But that's your choice ..... as both options are do'able.

ACID

thanks its conversation like these you want to pick up the phone to talk but you cant lol
besides im sure i can find a bank to explain the process...without a sale included

I was just unaware that i had the ability to transfer an ISa over and still able to get a new rate but at the same tiem open up a brnad new ISA and place funds inside
because you are generating interest in both but i supose you are correct that you are only depositing money into one

My next question would be that Do i need to find two different banks..one for a trandsferred ISA and the other to open a new ISA? is this because if it move/open two ISA they cannot do it because of the interest?

Ill have to think of what to do now as the ISA with Natwest will effectively have £3600 but will really have little interest
now do i transfer or open up all and then start to add a further £5100 this year to become £8700 for next year

or open up a brand new one elsewhere and put in £5100 with a better rate and ALSO trans the existing ISA elsewhere and just incur a better rate?

Baldur

ACID wrote: »

...... i supose you are correct that you are only depositing money into one

There's no 'suppose' about it, that is how the ISA rules operate.

My next question would be that Do i need to find two different banks..one for a trandsferred ISA and the other to open a new ISA? is this because if it move/open two ISA they cannot do it because of the interest?

You are still confused, the interest in Cash ISAs *is* the tax-free element. Many of us who have maxed out our Cash ISAs since they started in 1999 and held their predecessor, the TESSA, have well in excess of £50,000 earning tax-free interest in Cash ISA accounts.

You can either transfer your old ISA to a new provider that accepts ISA transfers and add your 2010/11 allowance (if the account permits that) or subscribe your 2010/11 allowance with a different provider - your choice.

ISA transfers, including any accrued interest are not affected by the annual allowance or the start/end of the tax year.

ACID

Baldur wrote: »

There's no 'suppose' about it, that is how the ISA rules operate.

You are still confused, the interest in Cash ISAs *is* the tax-free element. Many of us who have maxed out our Cash ISAs since they started in 1999 and held their predecessor, the TESSA, have well in excess of £50,000 earning tax-free interest in Cash ISA accounts.

You can either transfer your old ISA to a new provider that accepts ISA transfers and add your 2010/11 allowance (if the account permits that) or subscribe your 2010/11 allowance with a different provider - your choice.

ISA transfers, including any accrued interest are not affected by the annual allowance or the start/end of the tax year.

thanks baldur

what i meant was if i decide to trasnfer and also open up a new one (think this is best at the moment for me)

then can i just join one bank? say santander
and have 2 ISAs, one will be the transferred amount the other would be the new isa?
all from one bank..would that be ok?

Baldur

ACID wrote: »

what i meant was if i decide to trasnfer and also open up a new one (think this is best at the moment for me)then can i just join one bank? say santander and have 2 ISAs, one will be the transferred amount the other would be the new isa?all from one bank..would that be ok?

Yes, that's fine.

Presumably you are considering the Direct ISA for the transfer and the Flexible ISA for your new subscription.