Re-activating ISA by online transfer?

deutsch

So I used my ISA for 2009/10 but did not deposit anything in 2010/11. (opened ISA elsewhere)

On 6th April, can I just online bank transfer the funds from one account into the ISA account? without having to fill in a re-activation form? The transfer will be with the same banking institution.

I just want to transfer immediately in the new tax year and don't really trust giving a form into the bank (they'd probably lose it or delay the transfer...)

Lokolo_2

deutsch wrote: »

So I used my ISA for 2009/10 but did not deposit anything in 2010/11. (opened ISA elsewhere)

On 6th April, can I just online bank transfer the funds from one account into the ISA account? without having to fill in a re-activation form? The transfer will be with the same banking institution.

I just want to transfer immediately in the new tax year and don't really trust giving a form into the bank (they'd probably lose it or delay the transfer...)

From which account did you want to transfer funds into the ISA? If you are talking about transfering one of your ISA's, then you'll need to fill in a transfer form, as withdrawing it and depositing it yourself does not constitute and ISA transfer and it would then count towards your ISA allowance.

If you are talking about adding new funds, this should be easy once you hit 6th April, however why not just give your Bank a call to double check, theres still plenty of time before April, and all banks have varying rules!

deutsch

sorry, i should have pointed out the online transfer would be from a non isa account. so like on 6th april, i have already saved up the £5340 in the normal savings account ready to be used for the 2011/12 year. can i just online bank transfer this in the isa account which did not have anything put in last year (2010/11)?

psychic_teabag

So you have one ISA opened 2009-10, and another opened 2010-11, and next year you want to reuse the first one from 2009-10. It will depend on the T&C of the first ISA - if it was fixed term, say, you probably can't add more money to it. If it was instant-access, you probably can add more to it, but you should check the interest rate you're getting : old accounts rarely continue to pay a competitive rate.

If it was me, I'd just look around for the best rate I could find for the new money, and then (separately) transfer the old ISA(s) to ensure they were getting the best rates - not all accounts accept transfers in, so it's possible you'd have to settle for a slightly lower rate for your transferred ISA than you can get for your new ISA.

deutsch

My 2009-10 isa was actually opened in 2008-09. This was Natwest's e-isa, thus I get a better rate than someone after May 2009 anyway. (http://www.natwest.com/personal/savings/g2/isas/e-isa.ashx?DCMP=ILC-PERHPSTATQ1eISARate#section2)

I'm just considering moving everything all in one as 3.01% isn't too bad for instant access plus I avoid the fuss of opening a new isa to chase competitive rates. It does accept isa transfers.

Twister84

You'll need to fill out the ISA reactivation form which'll need to be sent to the Central Tax Unit. The form basically unblocks your ISA - without it, even if you transfer funds into it the ISA, they'll just bounce back to where you've made the transfer from.

Mikeyorks

deutsch wrote: »

can i just online bank transfer this in the isa account which did not have anything put in last year (2010/11)?

No - you have to apply to reactivate the account. As it ceases to accept subscriptions as described in the HMRC guidance below :-

HMRC_guidance_notes wrote:

Applications cease to be valid at the end of a tax year in which the investor fails to make a subscription. Where this happens, the investor must make a fresh application before subscriptions can re-commence.