Split old cash ISA into 2 Santander cash ISA's?

jobim321

So far I have been transfering my ISA savings every year, but never split it into different accounts. Can somebody please help with my question.

I have some old cash ISA savings in the account Xyz, the rate will go down to 0.2% at the end of April 2010. Can I do the following:
1. Open Santander Flex Isa (3.5%) and pay £3000 of the new money into it.
2. Withdraw £2100 from my old ISA and pay into Santander Flex Isa to top it up.
3. Open Santander Direct ISA (2.75%) to transfer the rest of my old ISA savings.

Thanks.

andyroberts_2

Just about to ask the same question.

I have roughly 15k in the issue 3 which is coming to an end.
I will be signing up/opening up and transferring this to the issue 6 (2.75%)

However can I also sign up to the 3.5% and pay in this years allowance?

Seems the best way to get the most out of it all seeing as though the 3.5 does not allow transfers in?

Andy.

Lokolo

Person 1

1) Yes
2) Yes but its a little silly
3) Yes (assuming that it accepts transfers in)

You are wasting £2100 ISA allowance by taking it out of an old one and into a new one. I am assuming you are only doing this because you cannot afford to save the other £2100 throughout the rest of the year?

Person 2

Yes thats right. When you are putting the money into Issue 6, you are transferring, which doesn't count as allowance usage.