New ISA query

debz1989

Hiya,

I opened a cash ISA with A&L (now Santander) last year to use my cash allowance. I have left this open, and have continued to put money into it this tax year. However, I can now get a better interest rate if I transfer it to Santander's direct ISA.

What I wasn't sure of is if I'm still able to open up a 'new' account with Santander, and move last years ISA money into it as well as continue to put money in, using up the rest of this tax years allowance?

I'm not sure I'm describing this very clearly, but any help would be much appreciated.

Thanks

10_66

Yes, you can open a Direct ISA with Santander, and request that they transfer the funds from your existing ISA into it (as long as the terms and conditions permit it), and continue to add the rest of this year's subscriptions to it.

KingL

It's fine with the taxman, but some ISA providers won't let you do transfers-in. The key facts on the Direct ISA says you can transfer in from other ISA providers. However, it also looks like you're also OK transferring in from other Santander ones.

If you wish to transfer an existing Santander Cash ISA to a Direct ISA this can be done simply by completing the transfer form and returning to us at the address stated on the form. You will not need to complete a new online application form

...from here

debz1989

Thank you both, will get the paper work away tomorrow

gunmaker

Be aware that you will only get 2.75% if you transfer in over £9,000.00, Below that the interest rate is only 2%.

Their e-saver ISA pays 2.75% for everything over £1.00.

debz1989

Thanks Gunmaker, I had noticed that so just need to work out whather I'll be better getting the higher interest rate but paying tax on it, or settling for tax-free lower rate.

Thanks for your help

gunmaker

debz1989 wrote: »

Thanks Gunmaker, I had noticed that so just need to work out whather I'll be better getting the higher interest rate but paying tax on it, or settling for tax-free lower rate.

Thanks for your help

Not sure what you mean Debz. Do you mean a higher rate with another provider and paying tax? If so there aren't too many providers out there giving a better rate than Santander's 2.75% tax free on their e-saver ISA.