Confused about ISA

sanders13

Hi,

I have an ISA with Standard life that I've been putting money into for over a year. I was looking to switch to one with a higher rate of interest within the next week or so.

Stupidly I forgot to switch off the automatic payments from my current account and it paid in £100 today. Does this mean that I can't switch to another new ISA account elsewhere as I have paid into this years allowance with Standard Life?

spikyone

sanders13 wrote: »

I forgot to switch off the automatic payments from my current account and it paid in £100 today. Does this mean that I can't switch to another new ISA account elsewhere as I have paid into this years allowance with Standard Life?

No, paying in doesn't stop you switching. However you will need to check with Standard Life what your terms and conditions are - you may be on a fixed rate ISA that will prevent you transferring out within the fix period, or charge you penalty interest.

Assuming you currently have an instant access ISA, or are free to transfer out, what you will need to do is:

1. Open an account that allows transfers in (if you need instant access the best paying account is the Halifax ISA Direct Reward 4)
2. Fill in the transfer form on the Halifax website, or if you open the account in-branch ask them there and then
3. Wait until the transfer has taken place before paying any other money in to the new account.

If you take out the Halifax account this is a quick and painless progress, and they will pay interest from the day they receive your transfer form - I've been quite impressed with their service so far

What happens if you transfer an ISA that you've paid into in the current year, is that your remaining allowance (£5340 minus whatever you've paid in since April 6th) moves to the new provider. You have to transfer the entire amount that you've paid in this year too, although it sounds like that's what you're doing anyway.

sanders13

Ah right, that makes sense. Yeah, I'm free to transfer out. Halifax is the one that I was looking to switch to.

Thanks for the information, cleared it up for me.