Toisa Discussion & Questions Board (Merged)

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
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  • isasmurfisasmurf 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
    You can go down either route - it really doesn't matter as they both end up being the same thing anyway. The TOISA were really intended for those that had already opened up a cash ISA already in that tax year, but wanted to keep the TESSA money with a different provider (perhaps their current one to get any loyalty bonuses). In practice that has happened because of misinformation, mainly by journalists that don't really know what they're talking about. You could have a TOISA and not an ISA, but is there really any point?
    Also, the capital from your matured TESSA will not use up any of your ISA allowance even if you put it in a cash ISA (but the interest you gained over the 5 years of your TESSA will if you choose to also invest that).

    So, in conclusion, I'd say stick it in a Mini Cash ISA.
  • isasmurfisasmurf 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)
    You say you were half way through the life of it, so presumably this was a 5 year fixed rate deal or something? That would make you having it for about 2 and a half years. In reality it is now just a Mini Cash ISA and as you have not invested this money during the current tax year you are allowed partial transfers. You can only have one TOISA, but as I say it is really regarded as a Cash ISA after the year you have invested it.

    So, in answer to your question, you could invest 3 grand with 3 different providers (in Mini Cash ISAs) if you wanted to but I'm not sure why you would want to?
  • SystemSystem Forumite
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    Lloyds TSB seem to be one of the best TOISAs around at the moment for no restrictions.

    4.75% for £6000-£8999

    5% interest if you invest £9000+
  • MilarkyMilarky Forumite
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    So, in answer to your question, you could invest 3 grand with 3 different providers (in Mini Cash ISAs) if you wanted to but I'm not sure why you would want to?

    Is this right? I assume you have to transfer a TOISA in one piece because the rules concerning 'ISA-transfers' relates to being able to split contributions from different tax years only. But the 'Tessa' from which the TOISA came wasn't an ISA at the time any of these initial contributions were made, and so would just become one 'single-year' contribution as far as ISA rules are concerned on marturing and being re-invested into a TOISA. Also, if you are only allowed to have one TOISA you could not split it across two or more 'mini-TOISAs' anyway?
    .....under construction....
  • isasmurfisasmurf Forumite
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    Is this right? I assume you have to transfer a TOISA in one piece because the rules concerning 'ISA-transfers' relates to being able to split contributions from different tax years only. But the 'Tessa' from which the TOISA came wasn't an ISA at the time any of these initial contributions were made, and so would just become one 'single-year' contribution as far as ISA rules are concerned on marturing and being re-invested into a TOISA.
    The Inland Revenue does not treat TESSA transfers as a contribution so I don't believe that the transferring current years contributions in full rule applies. Even if it did, the original question suggested that the TESSA transfer was not made in the current year but a past year and so splitting up the account three ways would indeed be possible.
    if you are only allowed to have one TOISA you could not split it across two or more 'mini-TOISAs' anyway?
    No, but you could split it between a TOISA and a Mini/Maxi Cash ISA. It is possible for you to transfer a matured TESSA to a different ISA providers at different times within the six month maturity period. Also, don't forget that after the year in which the TOISA received the TESSA transfer, the TOISA loses it's 'TESSA-only' status and becomes a Mini Cash ISA anyway.
  • Does anyone rate I.F Toisa above anyone else or is there an exceptional one on offer ?

    Ta
    Back to square one, no apg, no comment.
  • ReaperReaper Forumite
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    Bit of a late reply.

    IF is amongst the top payers (5.1%), but as mentioned in other threads the very best is M&S who are still accepting TOISAs at 5.5%

    I have used IF before and have no complaints, nor have I heard anything bad about M&S. So take your pick.
  • MSE_MartinMSE_Martin MoneySaving Expert
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    bump
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
  • frequentfrequent Forumite
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    Care to expand a bit Martin ?
    Back to square one, no apg, no comment.
  • isasmurfisasmurf Forumite
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    Martin was just 'bumping' the thread up to the top of the board. It's usual for people to do this if they want it to get attention.

    But since you get open a TOISA anymore, and exisiting TOISAs are just Cash ISAs I thought this thread would be redundant.
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