Old ISA's

Nessie23

petrolhead89 wrote: »

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.

Hi petrolhead, please note that normally you would speak directly to your new provider about transferring the ISA. So for example in your case you would speak to Halifax (or whoever you chose) and provide them with the sort code and account details of your existing ISAs. You would leave your ISA open with Barclays and Halifax would then request the ISA from Barclays.

Having said that, you might need to check with your existing provider (Barclays) whether there is a notice period or any penalties associated for transferring out the ISA.

The following article is MSE has useful background info. on ISA transfers (worth a read if you haven't seen it before) http://www.moneysavingexpert.com/savings/cash-isa-transfers?dd

Hope this helps, any questions please ask.

Nessie

petrolhead89

Hi, I've just tried to sign up for the halifax isa online, bit of a stupid question but one of the questions is "Do you already have a cash ISA with us or any other provider and have funded it in this tax year? " The answer of course is "Yes" because I do have one that I'm currently paying into with Barclays. If I tick No it doesnt let me proceed with the applications. What a headache!

As discussed the only reason I want this ISA is so I can transfer an old one into it - and that's something halifax allow on this one!

Yorkie1

Petrolhead, I think you're confusing the transfer of existing ISAs, with the opening of an ISA.

Have you personally put any new money in any of your old / existing ISAs since 6 April 2010? If so, then you cannot open a new ISA this tax year with Halifax.

If you haven't put any new money into your existing ISAs this tax year, then the answer to "Have you ... funded an ISA this tax year?" is No. This is because "funding" means putting new money into an ISA. Therefore, if you have new money you want to put into an ISA this year, you can legitimately open an ISA with Halifax and put the new money into it.

This is completely different from transferring existing ISAs. A transfer doesn't involve opening and funding a new ISA. It is simply changing the name of the provider of the existing ISA. In order to transfer your existing ISAs, contact Halifax (can you make an appointment in branch?) and organise the transfer. You can do this without opening a new ISA.

I have got 4 different ISAs. None of them have had any new money this tax year. I made an appointment with Halifax 2 weeks ago. I filled in the forms to transfer the first ISA to them, and those funds have already been moved. The second will follow shortly. I am not moving the third one as it's got a fairly decent rate. The fourth one was already with Halifax so has just been consolidated.

Hope this helps.

petrolhead89

Hi, Thanks a lot for that. Yes it does help. Cheers!

xrjtg

I think the problem is that the online application process can be used to transfer the current year's ISA to Halifax, but that doing so requires you to fib about whether or not you've already paid into one this year.

This isn't from personal experience though.