New money?

sundancing

Hi everyone, this may seem a dumb question but if, as I have, I close an ISA account I have with Santander and get my money back, can I then apply for a new Santander ISA account which would then pay me 3.20% instead of the rubbish interest I got for the last 12mths.

McKneff

Never take money out of an ISA, if you want to stay with Santander just ask them to transfer it into the new one. It really is as simple as that. I have just done that with my Halifax ISAs

If you want ever to go to another provider then the new provider will arrange the transfer.

Taking money out loses you the tax free status, unless youre going to actually spend it.

tanith

You should make sure the Acc you wish to open accepts transfers in before doing anything

PC_Gabriel_Kent

The Flexi ISA is new money only, it is also going off sale next week. It is still on sale if you take out a premium bank account ie the Reward or Zero account. Your existing ISA can be transfered into Direct ISA Issue 6 (2% if balance below 9k and 2.75% above) or the Fixed Rate Postal ISA at 3.50%.

sundancing

Thanks everyone, still a little confused though when does old money become new. Once I have closed my present account then I am no longer a customer. If I then walk in the next day and ask to open an ISA account why am I not a new customer.

Tammer

As the others have suggested, ask them if they accept transfers in. If yes, transfer your old ISA to the new one.

If no, it's really down to how much you have in the ISA. e.g. if you have £10,000 in an ISA and you close it, you can only invest £5,100 back into it in the current tax year. The rest would have to go in an account where you pay tax on the interest.

lvader

If your existing ISA money and any new money doesn't exceed the allowance for the year you might as well just take the money out of the existing ISA and start a new one. You will get better termes this way.