Santander Cash ISA - What to do now?!

ems46

Hi everyone, long time user of the site, first time forum poster!

I have a Santander Flexible Cash ISA which I've filled with my £5,340 allowance and received the interest on yesterday.

Just have a few questions about what to do next.

Can I withdraw the full amount now since I've already received the interest, leave it in my savings account until the new tax year and then open a new ISA with a different provider? This would avoid the no ISA transfer clause which is attached to many ISAs?

I'm planning on keeping some of the money in my regular savings account and maybe transfer half into the new ISA and then top it up as soon as possible, this way I'll be able to increase my saving rather than just earning interest on the same £5,340 or £5,640 in the case of the new tax year.

Many thanks in advance!

Nine_Lives

Have you checked whether there's a no transfer clause on the account? You say it's on many, but it doesn't really matter whether it's on thousands, what matters is whether it's on the ISA that YOU have.

Also, do instant access ISAs have no transfer clauses? I can understand in a fixed rate, but not in an instant access one.


If it's the one that was offering 3.50% around the beginning of the tax year, then it's the same one i took out. I got my interested paid out to me today, which i find a strange date to be paid out. I'm sure i never took it out at the beginning of March.

I know my rate drops to 2% on 29th March as i had a letter saying so, so i would assume i'd still be bagging 3.50% until then.
If yours is the same case, i'd say leave it until then. No instant access ISAs touching 3.50% right now.

Consumerist

K_P83 wrote: »

. . . I got my interested paid out to me today, which i find a strange date to be paid out. I'm sure i never took it out at the beginning of March.

The Santander Flexible ISA pays interest after close of business on 1 March each year and therefore appears on accounts on 2 March each year.

There is no restriction on this ISA being transferred; I did just that last week and received interest in full up to the transfer date.

If the OP "withdraws" funds from the ISA into a regular savings account then the tax-free ISA wrapper will be lost for ever; I think it would be better to withdraw only what is needed and transfer the remainder to a new ISA manager to keep the ISA's tax-free wrapper on what's left.

nearlyretired2004

Mine is also the 3.5% ISA - do you guys know exactly which days you accounts were funded and have you checked the amount of interest paid?

See my thread 'Santander interest calculation' on the main Savings board ......

Consumerist

nearlyretired2004 wrote: »

Mine is also the 3.5% ISA - do you guys know exactly which days you accounts were funded and have you checked the amount of interest paid?

My Flexible cash ISA paid 3.3% AER (Not a Santader current account customer - thankfully). The account was funded by various amounts on various dates but the interest paid on transfer was within a few coppers of my spreadsheet prediction.

nearlyretired2004

If you're interested there are some more posts on my other thread now .....

ems46

Hi guys, thanks so much for your responses.

This is my first cash ISA so please excuse my ignorance!

Am I right in thinking that if I transfer my current ISA to another provider in the new tax year I can pay up to £5,640 into this account on top of my current ISA balance?

I was under the impression that I would need to move my current balance to a regular savings account and start a new ISA fund but I've just read information on Nationwide's website that says I can add to my existing ISA with my new tax free allowance :j

Mr_K

yes you can (but its £5340, might be a bit more next year). DON'T move it to a savings account or you'll lose its tax free status, it needs to be transferred between ISA's by the providers.

blueberrypie

ems46 wrote: »

Am I right in thinking that if I transfer my current ISA to another provider in the new tax year I can pay up to £5,640 into this account on top of my current ISA balance?

Yes, *as long as you have used the ISA transfer process*. If you withdraw the money, it loses its ISA wrapper, and if you want to put it into an ISA again, it counts towards your annual allowance.

Consumerist

ems46 wrote: »

Am I right in thinking that if I transfer my current ISA to another provider in the new tax year I can pay up to £5,640 into this account on top of my current ISA balance?

Yes, that is correct.

I was under the impression that I would need to move my current balance to a regular savings account and start a new ISA fund but I've just read information on Nationwide's website that says I can add to my existing ISA with my new tax free allowance.

You can add to this year's ISA, up to £5,340, either before or after you transfer to a new ISA manager. You must use the transfer form from the new manager if you want to keep the tax-free ISA wrapper. . .

. . . and you can open a completely new ISA with any provider you chose from 6 April for up to £5,640, the [STRIKE]2013/14[/STRIKE] 2012/13 allowance.

ems46

Thanks guys, I've learnt more here today than I have from trawling bank websites for information all week!

As it is I'll leave my current cash ISA with Santander until the new tax year and then decide where to transfer it. At the minute I'm thinking about the fixed rate 3.3% AER from Aldermore because I'm not intending to dip it these savings in the next year or so and I think this would be the best way to get a competitive rate.