Isa query

mitchell

All,

Just require some advice, the situation is that i have an alliance and leicester flexisble isa during this tax year however it only contains £250.00 with interest payable anually.

i have a northern rock fixed rate isa expiring on 3rd march so my thinking was can i cancel the alliance and leicester account then open a halifax isa 3% this tax year and transfer the northern rock fixed rate isa once matures on 3rd march.

Regards:cool:

xrjtg

No, you can only pay into one cash ISA wrapper each year, so cancelling your A&L account would leave you unable to pay in any more this year. You can however transfer your A&L ISA to Halifax (provided Halifax accept transfers in on this account); you have to ask Halifax to do this (don't just withdraw the money yourself).

Stochasticity

Go into Halifax and tell them you have an A&L ISA you'd like to transfer to their Direct Reward ISA. Once the transfer is complete, the balance of your Halifax ISA will be £250 + the A&L interest paid on its termination and you will then be allowed to contribute up to another £4850 in this tax year (that's £5100 less what you've already paid into the A&L one this year) into the same Halifax ISA.

If you want to transfer the Northern Rock ISA to Halifax too, that can also be done and they may be able even to transfer it into the same ISA so that all three ISA are consolidated into one.