Minimum deposit issue on new Cash ISA

mr_glide

Hi everyone,

I've got £8k+ in a Santander ISA that I opened last year, and as the rate has tumbled after 12 months, I am keen to take advantage of being able to open a new one.

The issue getting in the way of which ISA to choose is that of minimum deposits. Unfortunately, I have no new money to invest currently, and am simply wanting to get my savings under the umbrella of a decent new rate, ideally with easy access, as I work for myself, and a last-resort safety net is desirable.

The Direct ISA by Santander looks like a decent option, but the minimum deposit is £2.5k, which in non-savings cash, I simply don't have. I presume that transfers don't count as deposits, so I was wondering if it would be an idea to use some of my savings for the deposit, and transfer in the rest. I suspect that possible negative tax implications might apply with this approach, but I'm tying my brain in knots trying to work out what they might be. I'm probably being a bit thick, to be honest.

Can anyone guide me in the right direction? Thanks!

Frogletina

From Santander's website

The benefits:
Receive a preferential rate of 3.30% AER (variable) tax free for the first 12 months.

• Minimum opening deposit £2,500. You can open the account with a zero balance if you are transferring in an existing cash ISA (min £2,500).*

mr_glide

Frogletina wrote: »

From Santander's website

The benefits:
Receive a preferential rate of 3.30% AER (variable) tax free for the first 12 months.

• Minimum opening deposit £2,500. You can open the account with a zero balance if you are transferring in an existing cash ISA (min £2,500).*

Ah, thank you so much! There was no indication of that on the application page I was looking at, but I really should've gone back to the main site and searched around before posting here. No excuse really, but thanks for your help!

DreamerV

mr_glide wrote: »

Ah, thank you so much! There was no indication of that on the application page I was looking at, but I really should've gone back to the main site and searched around before posting here. No excuse really, but thanks for your help!

Just to let you know that I have actually done this with Santander and they were fine about it (sometimes it's nice to know it actually works)