Double form for 2 ISA transfer

blueberrypie

arriva wrote: »

Thank you David.
Is the interest generated on the interest tax-free?
After two years the 2009/2010 £3600 became £3676.71, if I transfer it all to the Halifax ISA Direct Reward the 3.00% apply to the whole £3676.71 or just to the initial £3600? What I understood is that the first £3600 are tax-free, the rest isn't.
I am asking because I wanted to trasfer a few years worth of ISAs and if the past interest doesn't generate much interest I'd rather move it somewhere else...? What do you think?

Once the money is in the ISA, it's all tax-free, and it *all* stays that way unless you withdraw it.

So in Year 1 you get tax-free interest. In Year 2 you get tax-free interest on the original sum *and* Year 1's interest (*and* anything you contribute in Year 2) - and so on.

david78

Yes everythings tax free so transfer as much as you like.

arriva

great.. thank you! .... no more questions . ..

ImolaDan

rb10 wrote: »

You can transfer multiple ISAs into a single Halifax ISA, that's fine.

If you are transferring to a Fixed Rate ISA, then the transfers need to be done at the same time (although on separate forms).

Otherwise, (e.g. if you are transferring to the ISA Direct Reward) then you can transfer in at any time.

I want to transfer two fixed ISAs into a Halifax fixed rate.
One with the Coventry matures on the 31st May (it'll be put into another ISA automatically, but I can transfer out until the 14th June without penalty).
The other one with the Halifax matures on the 27th June.

I don't want to end either early and be penalised, if I check the "Where a period of notice is required for closure/part transfer of the existing cash ISA, I give my consent to serve the full notice period before this instruction can be processed" box on the forms will this delay them until they have matured?

Halifax's transfer in page states When you ask us to transfer your existing ISA to a fixed rate ISA Saver, we may open it initially as a variable rate Halifax ISA Saver. Once we receive all your ISA funds, we will change it to a fixed rate Halifax ISA Saver - so I guess that happens, and I get lower interest for a couple of weeks?

I'd rather that than transfer the Coventry one late and lose £53.63 in interest... or transfer the Halifax one early, and lose £165.78 :eek:

Help.

Baldur

ImolaDan wrote: »

.....if I check the "Where a period of notice is required for closure/part transfer of the existing cash ISA, I give my consent to serve the full notice period before this instruction can be processed" box on the forms will this delay them until they have matured?

Yes, it's an instruction to your old ISA manager. I always add the maturity date to the instruction, just to be doubly sure, and have never had a problem.

ImolaDan

Baldur wrote: »

Yes, it's an instruction to your old ISA manager. I always add the maturity date to the instruction, just to be doubly sure, and have never had a problem.

Great, slight new problem now... Coventry accounts numbers are one digit too long, there's no account number to be seen, and there are at least three different addresses on the correspondence :mad:

Looks like I'll be popping into my local Halifax to make sure it's all correct then, at least they can fax the forms off for me too, to make it a bit quicker.

Baldur

ImolaDan wrote: »

Great, slight new problem now... Coventry accounts numbers are one digit too long

Just write the full account number - doesn't matter if it doen't fit the boxes - many building society account numbers are longer than the banks expect.

there's no account number to be seen

I assume that you mean no Sort Code? Again, no problem, as I transferred a Britannia ISA to Halifax recently and that had no Sort Code.

ImolaDan

Oops, yes, I did mean no sort code.

ImolaDan

Update.

Turns out you can't transfer a Halifax ISA to a Halifax ISA. You can have two open with them at once though, and call them to renew an existing fixed ISA.

So, I've opened one with this year's allowance and transferred the Coventry ISA into it, then I'll be calling to renew the other one for another two years but at this year's rate when it's due (turns out to be in six weeks from now, due to Abbey taking far too long to transfer out before :mad: )

Bit annoying to have two separate ones, but it's still the same amount of money, duration, interest rate and paid interest either way.

Plus I can draw some money out of the smaller account if required and be penalised less than if it was all together - every cloud.