Transfer of ~£8,000 and subsequent deposits into a new ISA

Dan_M_2

Hi,

Can someone enlighten me as to whether I am allowed to transfer ~£8,000 into a new cash ISA (say Santander Direct) from my old Natwest one, and then subsequently invest my £5,640 cash limit this tax year?

The wording of conditinos for the new ISAs are not clear on that distinction between transfer limit, opening limit and investment over the next year limit.

Cheers

Dan M

Timay

Dan_M wrote: »

Hi,

Can someone enlighten me as to whether I am allowed to transfer ~£8,000 into a new cash ISA (say Santander Direct) from my old Natwest one, and then subsequently invest my £5,640 cash limit this tax year?

The wording of conditinos for the new ISAs are not clear on that distinction between transfer limit, opening limit and investment over the next year limit.

Cheers

Dan M

I believe so yes

just as long as you use a form provided for doing this from the new ISA and you don't just transfer it as a payment into the new ISA

Not 100% sure, but I'm sure someone will come along and confirm it though

Mikeyorks

Dan_M wrote: »

Can someone enlighten me as to whether I am allowed to transfer ~£8,000 into a new cash ISA (say Santander Direct) from my old Natwest one, and then subsequently invest my £5,640 cash limit this tax year?

Yes. Provided you choose one that allows transfers in and subsequent subscriptions. Some of the better rates are 'new money' only - so inhibit transfers.

psychic_teabag

For the ISA rules, I don't believe there is a transfer limit. A transfer does not count as a subscription ("new money in") and so a transfer has no effect on what you do with this year's subscription allowance. You can choose to subscribe to the same ISA that received the transfer, or you can choose to open one ISA to receive the transfer and a different ISA to receive your subscription.

Individual accounts may choose to implement their own restrictions (min balance, max balance, transfers allowed, etc) so you still need to check the individual account T&C's.

Dan_M_2

Thanks for the rapid reply. Sounds like I just need to checks the T&Cs of the new ISA and if there are "new money only" limits, I'll get a second new one for the transfer.

Dan M

furiousfencer

Yeah speaking from experience, No transfer limit per se.

I've just opened a new Isa put the new amount of £5640 and doing a transfer from previous year and has gone through fine.

(With Halifax)

badger09

Dan_M wrote: »

Thanks for the rapid reply. Sounds like I just need to checks the T&Cs of the new ISA and if there are "new money only" limits, I'll get a second new one for the transfer.

Dan M

You can definitely transfer your £8k and pay new £5640 into the Santander Direct ISA 3.3%:)

Sorry, meant to say, you can open the new ISA online, or by phone. Once you have the new account number, you can pay in your £5640 and complete a transfer form online. You then have to print & sign the form and send it to Santander.