Cash ISA Transfer Allowed?

Shamharga

Hi All,
My wife and I both have separate Cash ISAs with the same high Street Bank. To maximise interest we would like to consolidate the funds into a single account by simply transfering the contents of one into the other. The amount would be within the yearly allowance.

Am a little green when it comes to such matters. Is it allowed to simply transfer money in this manner between people?

When written down, this seems like a silly question , but I just have a niggly suspicion that there might be more to it.

Thanks in advance.

xrjtg

You are allowed to, but it uses up the allowance of the person the money is transferred to, and all of the allowance of the person the money is coming from that has been used so far will have been lost forever.

Which accounts are you looking at that will pay you more for a larger balance?

opinions4u

You can do it, but would it maximise interest?

Most cash ISAs don't have tiered interest rates so the returns would be no greater if you merged them.

Shamharga

Thanks Both....a little embarassing, but my math left me for a moment i now realise that for the accounts that am looking at there is no benefit in combining the two. Before I felt a little silly asking the question, now I feel outright foolish ...thanks anyway.

bigfreddiel

Shamharga wrote: »

Hi All,
My wife and I both have separate Cash ISAs with the same high Street Bank. To maximise interest we would like to consolidate the funds into a single account

No such thing as a joint cash isa - as the name suggests INDIVIDUAL Savings Account

by simply transfering the contents of one into the other. The amount would be within the yearly allowance.

Am a little green when it comes to such matters. Is it allowed to simply transfer money in this manner between people?

Well I don't think its a transfer - its a withdrawal followed by a payment in - using up your allowance

When written down, this seems like a silly question , but I just have a niggly suspicion that there might be more to it.

Nope no more to it - just a lack of understanding what an ISA is

Thanks in advance.

i hope the above helps

opinions4u

Shamharga wrote: »

Thanks Both....a little embarassing, but my math left me for a moment i now realise that for the accounts that am looking at there is no benefit in combining the two. Before I felt a little silly asking the question, now I feel outright foolish ...thanks anyway.

Don't feel foolish. You asked a question, you got an answer. Hang around, read a bit, feel free to ask more questions.

You might discover that you already run your finances fairly smartly. But you might pick up some ideas that make you a few £hundred a year better off.

talexuser

Most years I have 2 cash ISAs, the current years one with the best rate I can find, and all my previous years in the best rate I can find. This is because the best current rate account often does not allow transfers in from previous years (because of the market leading rate).

These accounts often have a one year bonus, so after a year you can rationalise by transferring to the best buy at that time that allows transfer in. But always transfer by sending the paperwork to your existing provider and letting them do the work - this keeps the money in tax free status.

A note in your diary and phone call for a transfer form is easily done and you have the satisfaction of beating the system as much as you can to get the best rates :T