Transferring Previous Years Balance from Current Year ISA?

BulletCraig

Hi,

Had a read through the ISA guide but wasn't 100% clear on how this would work.

I currently have approx £15k in a Standard Life ISA with (roughly, they don't do cash ISA's anymore so I can't find an exact rate) 2.3% interest. Approx £11k of it is made up from previous years and £4k from this year. I've been looking at the Northern Rock 3.35% 1 year fixed rate ISA and was wondering if it's possible to transfer the £11k from previous years to Northern Rock whilst keeping this years contributions in Standard Life and to continue adding to them (but not making any cash deposits)? Or would Northern Rock require me to make a cash deposit in order to set the new ISA up, in which case I wouldn't be able to as I've already been using my SL ISA this year.

Thanks in advance.

Samdy_Gray

Current tax year contributions must be transferred in full. Previous tax years can be transferred in part.

So yes, you could transfer previous years to Northern Rock and continue paying into Standard Life. Northern Rock shouldn't require an initial deposit, they can open the account with the transfer.

Lokolo

Yes you can do this. When you fill in the ISA transfer form you do not tick the box which says "I wish to transfer this years contribution." and make sure you fill in the right amount in transfer (so £11k).

BulletCraig

Thanks guys, that's exactly what I was looking for. Taking it one step further would I then also be able to transfer this years balance into that account at the end of this tax year or would Northern Rock only allow the one transfer in the way? How would the ISA being a 1 year fixed rate account affect that? Can I still add to a 1 year fixed account or do you have to make one big deposit to begin with and then leave it for a year?

Mikeyorks

BulletCraig wrote: »

............. and was wondering if it's possible to transfer the £11k from previous years to Northern Rock whilst keeping this years contributions in Standard Life and to continue adding to them (but not making any cash deposits)?

In theory you can do that. In practice - you need to check with Standard Life whether they will permit a partial transfer, as they're not obliged to :

HMRC wrote:

Providers are not required to accept the transfer in of accounts from another provider. In addition, providers are not required to permit partial transfers in or out

(I pinched that bit from the Junior ISA ..... as it's tidier. It equally applies to big boys / girls ISAs .......... but it's too untidy to copy it from there!)