Really basic ISA question

aliasojo

I opened my first ISA in March of last year so it's coming to a close soon. It gets automatically changed to an ISA that only pays 0.5% so obviously the money wont be staying there.

Can I open a new ISA after April 6th somewhere else and put the full amount of £5640 in it as well as transferring what will then be last year's ISA into it?

Or does it not work like that?

Lokolo

That's fine but you have to make sure the new ISA allows transfers (not all do) and when you do transfer you will in an ISA transfer form with the new provider.

The_Salad

aliasojo - a 'transfer ' is really easy to do (I just did one) but you MUST do it by filling in the appropriate forms of your new ISA provider. So after 6th April you can transfer your old ISA balance to your new provider and input your new 2012/13 tax free allowance as well.

But take care, as already mentioned not all ISAs allow transfers.

conan1_2

Same case for me, I currently have an ISA with Barclays and because it wont be paying that much next tax year 2012/2013, i was thinking of applying for their loyalty reward isa. So my question is, because they dont allow transfer in for the loyalty reward can I take out the money and close this years ISA before april and open the loyalty reward account when the new tax year begins and deposit the money then.

Thanks for the help

pfpf

my understanding is that you dont have to wait till the 6th April to tranfer from an existing ISA to the new one if the existing one has no tie ins.

so for example...you could open the Lloyds 3.7% 2 year fixed ISA today and arrange a transfer in, then on the 6th April make your next tax years contribution (£5640.00?).

PLEASE BE AWARE THIS IS MY OWN UNDERSTANDING AND MAY BE WRONG, IF SOMEONE CORRECTS ME I WILL DELETE WHAT I HAVE POSTED.

conan1_2

Thanks for the reply

The new ISA account I want to open for 2012 tax year doesnt allow transfer in
so i was thinking i should close my old isa account and when the new tax year comes, ill open and deposit the money on the new account but im not sure if im allowed to do that :S

blueberrypie

conan1 wrote: »

Thanks for the reply

The new ISA account I want to open for 2012 tax year doesnt allow transfer in
so i was thinking i should close my old isa account and when the new tax year comes, ill open and deposit the money on the new account but im not sure if im allowed to do that :S

See my reply on your other thread. Doing what you suggest will use up your 12/13 allowance.