Santander's 1yr fixed ISA. How would you manage this transfer?

Nine_Lives

Can it even be done?

The way i understand fixed is 1 deposit & then that's it, locked in, job done. Can't withdraw without penalty & can't add.

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&canal=CABBEYCOM&cid=1237908323140&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_ViewSelector

I notice that link says you can transfer in your existing ISAs (notice the small s in bold - plural).

I have "old ISA" money currently with Halifax gaining 3.00% + 0.2%, but i believe it has to be held for 12 months to get the 0.2% (i could transfer all but £1 to get around this).

I have a cash ISA from this tax year already with Santander which is getting 3.50% (easy access). It's maxed out at £5340.

When the new tax year rolls around, i will also be putting the maximum amount in in 1 drop.


Ideally i would like the whole lot working the hardest - so in the ISA getting the highest rate.

We're planning on getting our own place next year, so i am limited to a ONE year ISA only.

How can i then transfer in the Halifax money, transfer in the current ISA -and- deposit next tax years allowance, when it's fixed?
Unless i've understood the definition wrong?

evenasus

You can do all three.

From the Santander website...

The benefits:
Guaranteed rate for 1 year.
Deposit from £2,500 up to the annual cash ISA allowance.*
Plus, Option to transfer in your existing cash ISAs.
Plus, for accounts opened in the 2011/12 tax year, additional deposits are allowed between 6 April 2012 and 14 April 2012 - which means you can also deposit your 2012/2013 cash ISA allowance.

You open the 1 year ISA with your transfer (you have 14 days from opening this ISA to do this) not by putting new money into it.

Nine_Lives

So i transfer my Halifax ISA first (which is over 2.5k).
I then transfer my 2011-12 ISA which is held with Santander second (such as on 6th April)
And also on 6th April, i dump in the full amount for the 2012-13 tax year?


If i'm on the right page so far, that leads me to one question....

You say 14 days ... is this 14 days to "put in" for the transfer, or would this include the transfer needing to be complete?

Basically, if Halifax dig their heels in & are slow in releasing my funds, can this balls up the transfer? Or, so long as i apply for the transfer within those 14 days, am i ok?

Hope that makes sense.

evenasus

K_P83 wrote: »

You say 14 days ... is this 14 days to "put in" for the transfer, or would this include the transfer needing to be complete?

Basically, if Halifax dig their heels in & are slow in releasing my funds, can this balls up the transfer? Or, so long as i apply for the transfer within those 14 days, am i ok?

Hope that makes sense.

From the information on the Santander website, I would say it's the request that counts.
Your request is to Santander, not Halifax. So Santander will know when you have actioned the transfer request.

Be able to make your deposit/transfer in request within 14 days of account opening.

If you want to make absolutely sure, then you can ring them on 0800 587 2764 to confirm.

Nine_Lives

Thanks for that.

I've also contacted Santander to get a direct response from them.

evenasus

I've just phoned them and opened their 2 Year Fixed Major ISA.

I spoke to a very helpful chap called John (lovely lilting Irish accent) and he made it easy.

I intend to transfer 3 years worth of ISAs for the initial funding. Then after 6th April, put the £5640 2012/2013 allowance in.

Nine_Lives

I notice the 3.50% is listed as "assuming deposit on 1st April 2012".

So what is it then if you fund this account before/after this date?

I could transfer old money as soon as it's available online. Thing is whether they'd allow me to then deposit new money on the 6th, as it'd be outside of the 14 days.

evenasus

K_P83 wrote: »

I could transfer old money as soon as it's available online. Thing is whether they'd allow me to then deposit new money on the 6th, as it'd be outside of the 14 days.

You have until the 14th April to deposit your 2012/2013 allowance - not 14 days.

From the website...

Plus, for accounts opened in the 2011/12 tax year, additional deposits are allowed between 6 April 2012 and 14 April 2012 - which means you can also deposit your 2012/2013 cash ISA allowance.

Nine_Lives

Thanks.

In that case, i see no reason as to why i shouldn't transfer my Halifax ISA currently sitting at 3.00%+0.20% as soon as i can online.

My current Santander ISA for 2011-2012 tax money is currently at 3.50%, so as the 1yr fixed is also 3.50%, i'm losing nothing by transferring this also.

And then as you say, new money is allowed between those dates, so that settles that.



It all comes down to the one question which nobody can answer ....... whether 3.50% for 1yr is likely to be beaten during this "ISA season".