ISA to TOISA

Reaper

OK, I'm sure the answer to this is no, but I'll ask just to make sure.

Since a cash ISA and a TOISA are effectively the same thing am I allowed to transfer my cash-ISAs into my TOISA?

My TOISA pays a staggeringly good rate so I just thought I'd ask, although I'm sure you'll all laugh and point out the first two letters of TOISA stand for Tessa Only!

isasmurf

I think the answer lies in the T&C of your 'TOISA'. The TOISA label only applies during the tax year in which the TESSA transfer is made, then normal Cash ISA rules apply. Theoretically there should be no such thing as a TOISA come 6th April.

So really there shouldn't be a problem, but I think some TOISAs offer a good rate because they do not allow any further transfers in.

Reaper

Sadly you are right. I checked the T&C and they do seem to say I can't add any more to it. Shame as it is paying a wonderful 6.04% because they made the mistake of linking the rate to their mortgage SVR.