Transferring ISA's

tommy060289

Hey everyone,

I currently have an ISA with Brittania and I have used my allowance for the year so I cant open a new one yet but I am wanting to transfer the ISA to my current account bank as I would get more interest and online instant access. The thing is though, my interest gets paid at Brittania when ever the new tax year flips over so if I was to transfer over the my other bank would I lose all interest for this year or would it be paid pro-rate and then the same when it gets to my new bank or do I need to wait till the new tax year comes round so I get my interest and then transfer.

Also, it is currently the only ISA I have and I want to invest some more money on the 6th of April so would I need to transfer my ISA to my new bank and then add some more money when the new tax year comes or could I open the new ISA on the 6th April with some more money and then transfer the rest of my money from the Brittania with out affecting my allowance for the 2011/2012 tax year.

Cheers,

Tom

briddj

It doesn't matter if you have already put £5,100 in this year, you can still open a new ISA (by transfering funds) to get a better rate.

There is NO point transfering the funds into your bank account unless you are going to spend it.

Get it transfered NOW to someone like Principality. I filled in the form online, posted off the necessary transfer permission form with my current ISA details, and it was all done in ONE WEEK.

Just because you have funded in full does NOT mean you cannot switch to a better ISA.

briddj

In addition, if you move the money from your ISA to your bank account you will ONLY be able to invest £5,100 (or whatever the new amount is) on April 6 and NOTHING more for 2011-12.

In essence you will be REMOVING all the benefits of previous years ISAs. The only way you keep your benefits is by transferring from ISA to ISA.

Finally, yes if you transferred today you will get interest to today. It is awarded day by day but paid yearly, for most places.

tommy060289

Sorry, I didn't make myself clear. I meant an ISA account where my current account is. So can I transfer straight to the new ISA and still get some interest from brittania?

Also, I do not need to open the account before transferring do I? The ISA will open when I transfer?

tommy060289

Put the transfer request in today so how long do people tend to find these things take?

Cheers,

Tom

Lokolo_2

tommy060289 wrote: »

Sorry, I didn't make myself clear. I meant an ISA account where my current account is. So can I transfer straight to the new ISA and still get some interest from brittania?

Also, I do not need to open the account before transferring do I? The ISA will open when I transfer?

CORRECT! The ISA will open once the transfer has taken place, you just need to fill in the relevant forms :j

tommy060289 wrote: »

Put the transfer request in today so how long do people tend to find these things take?

Cheers,

Tom

That's a question and a half! ISA transfers vary greatly in how long the process takes, it could be a week if you are lucky, or possibly up to a month if you're unlucky, but I believe there are stricter rules in place now where the provider has to process the transfer within 2 weeks?