ISA Confusion... think I may have made a schoolboy error!

WillboWaggins

Hi Folks,

In the 2011/2012 tax year I filled my ISA (just an easy access cash ISA with a one year fixed rate of 3%).

I had funds available on the 7th April this year to deposit the full amount of the 2012/2013 ISA allowance and therefore added this to my existing ISA.

The one year fixed rate has now come to an end and I am obviously therefore looking at transferring this ISA to another provider to achieve a better rate.

My concern however is that I am not sure how, in practice, to do this. The account that catches my eye is the 2year fix from Birmingham Midshires at 4.05%. Am I allowed to "apply" for this account or is that against the rules because i've already paid into an ISA this tax year? All i'm looking to do is open a new ISA to transfer my current ISA in to.

I'm sure this is probably really simple and obvious to most of you however I'm awfully confused by it all!

Any help greatly appreciated.

Many thanks


Will

Mikeyorks

Yes you can do what you want (I'm assuming the BM accepts transfers in?). Transfers have no impact on your annual allowance.

New_York_No1_fan

WillboWaggins wrote: »

Hi Folks,

In the 2011/2012 tax year I filled my ISA (just an easy access cash ISA with a one year fixed rate of 3%).

I had funds available on the 7th April this year to deposit the full amount of the 2012/2013 ISA allowance and therefore added this to my existing ISA.

The one year fixed rate has now come to an end and I am obviously therefore looking at transferring this ISA to another provider to achieve a better rate.

My concern however is that I am not sure how, in practice, to do this. The account that catches my eye is the 2year fix from Birmingham Midshires at 4.05%. Am I allowed to "apply" for this account or is that against the rules because i've already paid into an ISA this tax year? All i'm looking to do is open a new ISA to transfer my current ISA in to.

I'm sure this is probably really simple and obvious to most of you however I'm awfully confused by it all!

Any help greatly appreciated.

Many thanks


Will

Panic not!

You can transfer all of your ISA funds to BMidshires so long as you don't put anymore NEW money in the account as you have already put money into another Isa for this financial year.

You can apply to BM online or on the phone. It took about 10mins to get through yesterday lunchtime. He filled the form over the phone and has sent it to me to check and sign. He didn't need to do a credit check or ID as I already have a BM account.
Have been with BM on and off for several years and have had an ISA with them in the past. Rate them first class, very efficient.

Bear in mind however, as its a 2 yr account, once it closes to new customers you will not be able to put in anymore money, even if its money for next year 13/14.

WillboWaggins

That's really helpful, thank you both.

I just went through the online application form with BM but encountered 2 problems:
1) There is nowhere to say the I wish to fund the account by way of transfer of current ISA
2) By default, it stipulates that I will make my deposit by cheque. Obviously this isn't so as I cannot make any more deposits, only a transfer. I cannot find any way (online) of changing this.

Any suggestions? Thank you both again for your prompt responses, very helpful

tushingham

WillboWaggins wrote: »

That's really helpful, thank you both.

I just went through the online application form with BM but encountered 2 problems:
1) There is nowhere to say the I wish to fund the account by way of transfer of current ISA
2) By default, it stipulates that I will make my deposit by cheque. Obviously this isn't so as I cannot make any more deposits, only a transfer. I cannot find any way (online) of changing this.

Any suggestions? Thank you both again for your prompt responses, very helpful

They're really helpful on the phone if you want to ring them but i have opened this ISA and they send you an ISA transfer form with their initial letter so you just complete that and send it back with a consent form they send you.
Sorted!

t

New_York_No1_fan

WillboWaggins wrote: »

That's really helpful, thank you both.

I just went through the online application form with BM but encountered 2 problems:
1) There is nowhere to say the I wish to fund the account by way of transfer of current ISA
2) By default, it stipulates that I will make my deposit by cheque. Obviously this isn't so as I cannot make any more deposits, only a transfer. I cannot find any way (online) of changing this.

Any suggestions? Thank you both again for your prompt responses, very helpful

When your application comes to you, there will should be the option on the form to transfer in or failing that a separate transfer in form enclosed. Don't think it really matters if you have ticked cheque on the form.

WillboWaggins

OK thanks everyone really appreciate your help on this one. I'll complete the form online and see what they send me, hopefully i'll be able to sort it all out from there.

I will update you out of courtesy (not that you are interested!!) to let you know if it all goes through ok

Cheers again all


Will