Can I move all or part of my ISA to another location?

Fridaybridge

Starting in the Tax Year 2008/2009 I opened a N/West ISA Plus Account. I've added to it in subsequent years and this month put the full 5,640 into it. Now I'm thinking it wasn't so smart.
Why? I've just received a letter informing me the 'interest rates' on this ISA are about to drop.:cool:
Having now invested my total allowance for this tax year 2012/13 I'm curious to know if I can still 'move' some of it to get a better rate of interest? If I wish to withdraw money from my ISA Plus there's no penalty however that would be dumb because I'm at the limit of what I can invest.
I really want to know if I transfer any of this money to open an ISA with another provider or do they all require some 'initial deposit' to get a new ISA off the ground? Any comments/suggestions please? Fridaybridge.:)

Vortigern

Yes, you can transfer to another ISA. See the links at the top of this page for "Top Cash ISAs" and "Transfer your Cash ISAs"
You need to find a new provider which will accept transfers. You need to open a new ISA without making an initial deposit. You must then complete your new provider's ISA transfer form. Don't withdraw your cash or attempt to do the transfer yourself.

badger09

Fridaybridge wrote: »

Starting in the Tax Year 2008/2009 I opened a N/West ISA Plus Account. I've added to it in subsequent years and this month put the full 5,640 into it. Now I'm thinking it wasn't so smart.
Why? I've just received a letter informing me the 'interest rates' on this ISA are about to drop.:cool:
Having now invested my total allowance for this tax year 2012/13 I'm curious to know if I can still 'move' some of it to get a better rate of interest? If I wish to withdraw money from my ISA Plus there's no penalty however that would be dumb because I'm at the limit of what I can invest.
I really want to know if I transfer any of this money to open an ISA with another provider or do they all require some 'initial deposit' to get a new ISA off the ground? Any comments/suggestions please? Fridaybridge.:)

You can, if you wish, split your accumulated ISA funds. The only rule is that all current year's subscriptions must be kept together.

So you could move some to a Fixed Rate ISA for 1 or more years to achieve a higher interest rate, and some to an Instant Access ISA if you might need to withdraw some.

Make sure you use the new providers' transfer process though

Mikeyorks

Fridaybridge wrote: »

Having now invested my total allowance for this tax year 2012/13 I'm curious to know if I can still 'move' some of it to get a better rate of interest?

You can - and likely should - move all of it. What is the point leaving some behind if it will be at a new rate you clearly don't think is adequate?

There's no 'deposit' required at the new provider if you're transferring ...... although be careful that some do give that impression.

thenudeone

Mikeyorks wrote: »

What is the point leaving some behind if it will be at a new rate you clearly don't think is adequate?

With all the ID checks required these days it might be worth leaving £1 in the account so that if another offer comes up, you still class as an existing customer and probably don't need ID.

Vortigern

thenudeone wrote: »

With all the ID checks required these days it might be worth leaving £1 in the account so that if another offer comes up, you still class as an existing customer and probably don't need ID.

...but if you leave £1 in the account, you won't get interest added up to the date of transfer. If you transfer the whole lot you'll get some interest added up to the date of transfer/closure.