WHEN to transfer ISA's - Confused.

cemeterybird

Martin is always keen to tell us about transferring ISA's to get maximum interest but I'm confused as to when the right time is for doing it. He starts telling us at this time of year but is it better to transfer before the end or March or at the beginning of the new tax year?

Also, do you close the accounts you have transferred out of?

Surely it must get to a stage after a few years that you have exhausted all the financial banks & societies etc., and if you have an account left open with a certain bank and a couple of years down the line they have a good offer on, then as an existing customer, you wouldn't be able to take advantage of the new offer?

After seeing my interest dwindling over the past few years, I realise it is something you have to keep on top of but for a non financial minded person, I find it all very confusing.

Any advice gratefully received..... thanks.

oldfella

you transfer out when you can make more interest than by leaving it where it is

Funkyfreddy

cemeterybird wrote: »

Martin is always keen to tell us about transferring ISA's to get maximum interest but I'm confused as to when the right time is for doing it. He starts telling us at this time of year but is it better to transfer before the end or March or at the beginning of the new tax year?

Providing you are not within any minimum term that restricts transferring out you can do so at any time.

The suggestion to avoid end March/Early April is arguably more to do with the volume of transfers that take place and avoid any potential additional delays.

cemeterybird wrote: »

Also, do you close the accounts you have transferred out of?

Follow the transfer process and you "old" ISA will be closed as a matter or course.

FF

talexuser

yes the accounts close, so there is no problem swapping as many times as you like. I have this years cash in one account, and all the previous years money in another provider to give the best possible rates.

You can have a different account for each year, and transfer or merge as wanted, the only downside is loss of interest during the sometimes lengthy (2 to 4 weeks) transfer period.

psychic_teabag

cemeterybird wrote: »

Surely it must get to a stage after a few years that you have exhausted all the financial banks & societies etc., and if you have an account left open with a certain bank and a couple of years down the line they have a good offer on, then as an existing customer, you wouldn't be able to take advantage of the new offer?

For many institutions, the offers are available on new accounts, not new customers. Or sometimes "new money", ie money paid in from outside the institution, rather than just an internal transfer from an existing account.

Sometimes, there are special offers for existing customers only. I would guess that after sufficient time has elapsed, you can come back to an institution as a new customer - eg ING considers you a new customer 6 months after you close your last account.

Catslovelycats

Helpful thread. I'm wodnering exactly the same thing!
Another question here on a similar note.
I opened an ISA in July that had a 12 month interest deal.
If I withdraw most of the balance before end of this tax year, so keeping the ISA open during the 12 month period, does it mean I can add to the balance again after 5th April because it's a new tax year?

psychic_teabag

Regardless of whether you withdraw money this tax year or not, you can add more next tax year. (Well, probably - it depends on the full T&C of the account. A 12 month interest deal might mean a fixed-term account, but since you are talking about withdrawing some of the money, it probably means a guaranteed bonus on an instant-access account.)

Or you can open a new ISA with a different provider next tax year, if you can find a better rate (or perhaps even an equal rate, if it's guaranteed for longer than July).

You'll probably want to transfer the existing ISA in July when the rate falls. (Though, as above, you can transfer it earlier if you can find a better rate before then.)

Stompa

talexuser wrote: »

...the only downside is loss of interest during the sometimes lengthy (2 to 4 weeks) transfer period.

It's supposedly a little faster than it used to be:

http://www.bba.org.uk/media/article/banks-to-cut-cash-isa-transfer-times

rb10

talexuser wrote: »

the only downside is loss of interest during the sometimes lengthy (2 to 4 weeks) transfer period.

Halifax <-> RBS transfers now go electronically, which keeps the transfer time down.

Any transfers into Halifax or Nationwide also pay interest from the date that the transfer form is received, so there's no loss of interest there.

soulsaver

catslovelycats wrote: »

Helpful thread. I'm wodnering exactly the same thing!
Another question here on a similar note.
I opened an ISA in July that had a 12 month interest deal.
If I withdraw most of the balance before end of this tax year, so keeping the ISA open during the 12 month period, does it mean I can add to the balance again after 5th April because it's a new tax year?

Do you mean 'Can I add to this years ISA next year?' Probably not.
Are you sure you cant make the question clearer?

Catslovelycats

soulsaver wrote: »

Do you mean 'Can I add to this years ISA next year?' Probably not.
Are you sure you cant make the question clearer?

I'll try, but not sure if this is any clearer:
I have a cash ISA with less than £5100 in it.
I opened it in July and the rate lasts a year.
As its duration runs across the tax year, does it mean I can keep putting money in (up to the maximum allowance) after April?
eg. say the balanace is £1000 and I put another £2000 in this side of April. Can I put in, say, £2100 between April and July - ie within the 12 month account period? Or does it have to be put in within the tax year?