Simple ISA Transfer Question

JamJar

I suspect this is answered somewhere else and you'll all tell me off for not doing a thorough search to find the answer ... but here goes.

I have all my previous years peps/isas consolidated in a Natwest ISA - the bonus rate is about to end.

For this financial year I took out a new ISA with Santander. It doesn't except transfers in.

Can I open another ISA before the end of this financial year simply to transfer my Natwest ISA to a better rate - i.e. I won't pay in any additional funds?

I suspect I already know the answer ... which I think is no, but I hope someone more knowledgeable will confirm either way.

Cheers.

JJ.

skitskut

The answer is yes! You can transfer ISAs as many times as you like. Your new ISA is effectively opened by the action of transferring your Natwest ISA.

lisyloo

The wording in some places is confusing.
You can only have one ACTIVE isa at any one time into which you are contributing.

You can move the old money around as much as you like.
Ideally you shoudl start the xfer about a month before the rate goes low, as transfer take time.

JamJar

Ahh, good .... now to hunt out the best rate that allows transfers in.

Cheers.

JJ.

JamJar

Mmm, as a follow up ... the best rate seemed to be HBOS / Halifax, especially as I have a reward account that would boost the rate to 3%.

However, in the application there is a question that says:

Do you already have a cash ISA with us or any other provider and have funded it in this tax year?

If I select yes, as I have an ISA with Santander, the it won't let me open an account?

I suspect it will if I select no ... but that would be telling a lie?

I'll call them to find out.

Cheers.

JJ

jhxmt

That sounds like the type of question they'd be asking if you were setting up (and funding) a new, fresh ISA - not if you were transferring one from another provider. Hopefully whoever you get on the phone will be able to clear that up.

JamJar

Yay, account opened with Halifax.

Transfer form downloaded and on it's way as Halifax give the 'ISA Promise' which means they'll pay interest on the funds from when the form is received rather than when Natwest decided to send the cheque!

Happy as Larry.

JJ