Old ISA's

petrolhead89

Hi everyone,

I have a couple of Old ISA's sitting with the same provider, obviously the intrest I'm earning on both of these is getting less and less every year.

As well as opening a new ISA at the begining of the new financial year can I move the money I have in these two old ISA's into new ones to gain good intrest again?

Any help appreciated.

Soliton

Hi,

You can "transfer" the old ISAs into a new one at any time, you don't have to wait for the new year. It is important to transfer rather than close and open as you would loose the historic tax benifit and use the current years allowance.

Of course, if you want to bring them together into one account and add new funding all in the new tax year that is also fine.

You will need to choose your new accounts carefully as not all ISAs take transfers. You also will find thant the best rates are usually for new money only. So it may benifit to transfer the old ones now and have a new money only ISA for the next tax year.

Hope this helps.

petrolhead89

yea thanks for that :beer:

Hen_Step

I fell into the same trap some years ago with 2 PEPs that I had, which I foolishly did not monitor the interest rates.
As previously mentioned look for a provider who will accept transfers with a better rate. Took me about a week to change over.

Newbie2saving

Keep an eye on your interest rates, I fell foul of this 18months ago and realised it is something I need to chase annually (as that suits my situation). I found the best rate and moved my money in. I recently opened the Halifax at 2.8% + 0.2% for having a reward acc with them, had one ISA maturing last Dec and will have another to add in May. It is an attractive rate and lasts for 12mths. I also wanted to consolidate my pot as had a few ISAs in diff places maturing at different times (they were previously fixed).

The other option is to fix if you don't want to be bothered with moving monies every year. You can fix for a few years or just one or two, whatever suits you. Just be aware that if interest rates rise you can sometimes pull out with loss of interest, depends on the product, ensure you read t&c's.

Nessie23

Hi you can have a look at this thread https://forums.moneysavingexpert.com/discussion/401374 for a list of ISAs; it includes specific sections for the ISAs which accept transfers

KANNAN

hi
most variable rate accounts offer bonus rate to attract funds but it is your responsibility to review when this bonus expires.

you may consider fixed rates if you have no plans to access funds.

petrolhead89

I see, so are you all saying its possible to consolidate my two old ISA's together into one account with a better interest rate? ( I dont think the total would exceed £5100)

Is that a good way to go ?

I assume I would also be able to open a new ISA at the begnining of the new tax year and just pay into that one?

ps: sorry about the stupid questions!

xrjtg

Yes. You can transfer money from two different old accounts into one new account, which has the effect of merging them. You can also carry out partial transfers, which has the effect of splitting accounts. The only rule is that you may only pay into one account a year; transfers of previous (and current with no splitting) years' money are unrestricted.

Soliton

The £5100 limit does not matter for transfers. I only applies to new money in this tax year. The Goverment is increasing this next year.

petrolhead89

Thanks again guys - I will have to speak to Barclays and ask them to do a transfer of my two existing ISA's into a new one (reading around this is what I need to do to ensure I dont loose my tax free allowance). Halifax looks the best option at the moment..

Cheers guys.