Toisa Discussion & Questions Board (Merged)

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
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  • SystemSystem Forumite
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    I have a tessa maturing with nationwide. they offer 4.25% to stay with them as toisa. whats the best deal at the moment from others in the market.
  • libra10libra10 Forumite
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    If you have been with the Nationwide for 3 years or more, you qualify for their Members' Tessa or ISA, at a rate of 4.5%
    Good luck
  • SystemSystem Forumite
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    I have a full £9k to invest in a TOISA, which it appears I am entitled to do for a period of 5 years (like the original Tessa term), but I note there are also 2 year fixed term deals. If I invest in a 2 year deal, will I be entitled (as it now stands) to reinvest the funds (or, at least the capital element) at the end of the 2 years in another TOISA or is that the end of its tax-free interest earning capability?
  • isasmurfisasmurf Forumite
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    A TOISA does not have any time limits placed on it (unless the provider has placed some on it)

    You can place the capital from a TESSA into a TESSA only ISA (TOISA) or a Mini Cash ISA or the cash component of a Maxi ISA - the point is you don't have to stick it into a TOISA if you can find a better deal elsewhere.

    Once in an ISA it will then be treated like any other cash ISA, i.e. you can transfer it between providers if you so wish, it will no longer be recognised as money coming from a TESSA. So as long as ISAs are tax free (which at the moment is only guaranteed to be until April 2009) the income from the money you invest from your TESSA will remain tax free.
  • SystemSystem Forumite
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    A TOISA does not have any time limits placed on it (unless the provider has placed some on it)

    You can place the capital from a TESSA into a TESSA only ISA (TOISA) or a Mini Cash ISA or the cash component of a Maxi ISA - the point is you don't have to stick it into a TOISA if you can find a better deal elsewhere.

    Once in an ISA it will then be treated like any other cash ISA, i.e. you can transfer it between providers if you so wish, it will no longer be recognised as money coming from a TESSA.  So as long as ISAs are tax free (which at the moment is only guaranteed to be until April 2009) the income from the money you invest from your TESSA will remain tax free.

    In my case the point of taking out the TOISA (with the matured Tessa capital) is that I already have ISA accounts which are fully subscribed. While it is clear the matured Tessa capital can be invested tax-free in a TOISA account, if that TOISA is for a fixed term, say, of 3 years, I am uncertain whether at the end of that 3 year term the capital element would be capable of being reinvested in another TOISA. This point does not appear to be covered in the various guidelines for Tessa/Toisas.
  • david78david78 Forumite
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    Graham,

    There seems to be some confusion here. The TOISA you have is really a min cash ISA which has been funded with the capital from a matured TESSA.

    The regulations treat your TOISA as a cash ISA. Indeed the term TOISA has no legal meaning and is used only by some providers as a marketing term.

    So your TOISA (cash ISA) can be transfered to any mini cash ISA provider who accepts transfers in. As your TOISA (cash ISA) has a finite term you need to arrange the transfer at the end of the term.

    It is quite likely that you will be offered a suitable account (instant access, CAT etc) from your current provider nearer the time because they won't want to lose your business. It would be simplest to take them up on their offer, then once the money's in an instant access ISA look around for the best interest rate and transfer it if you want to.

    Relax, you should be able to keep your investment in its TAX-FREE wrapper.

    Why is this thread here and not in the TESSA, ISA, TOISA board!
  • isasmurfisasmurf Forumite
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    Graham - one further thing to add.  You say that you already have maximum subscribed cash ISAs.  That doesn't matter, the money from a Matured TESSA does not affect you allowance in any way, as long as you have your maturity certificate.  So you can still transfer the TESSA into a Cash ISA you have already put £3,000 into.

    I would also add that since there will be nobody with funds to transfer from a Matured TESSA from October, that you are very unlikely to see Banks marketing TOISAs in 3 years time, so you will probably have no option but to transfer the TOISA to a Cash ISA.
  • SystemSystem Forumite
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    I have 6-9000 to invest in a TOISA. I can give 90 days notice to withdraw but dont want any penalties if I do withdraw. Whats the best rate around at the mo
  • LolLol Forumite
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    I have a matured Tessa in Nationwide. Since I don't have any isa's does this mean I should put the matured tessa into an isa instead of a Toisa. Are Toisa's for people who have already used up their isa allowance? (I have less than £3000 in the matured tessa). I have read all the info on here but am still a bit confused, so if anyone could tell me what to do with it and where I'd be grateful. x
  • steady__eddiesteady__eddie Forumite
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    I have TOISA which is nearly half way through its shelf life but the provider have now ordained immortality on it, i.e. it will not last for 5 years but forever (if Ind. Rev. don't change the rules). As I am not overly excited at the interest rate offered, I was thinking about transferring it but am I limited to one 9 grand I.S.A. or could I plump for 3 3 grand I.S.A.s with different providers ? I have contacted the Revenue about this but currently I am being passed from pillar to post so I thought I'd do better asking the experts. (Flattery is alright as long as you don't inhale)
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