Transfering ISA - what happens to the interest?

Goldeagle1

I have had £1000 in a Halifax ISA for a year, but not really sure how they work. The interest gets paid yearly - I assume in April at the end of the tax year.

I want to transfer the money into an ING ISA asap because they have a higher rate of interest. If I do this, what will happen to the interest from my halifax ISA? Will I get any interest even if it is taken out before the end of the tax year?

Thanks!

SeanW

Assuming there are no withdrawal restrictions, yes, you should get the interest due at the date it is transferred. Interest is usually calculated and accrued daily.

LittleVoice

The interest will be added to the capital and passed on to ING.

tom188

ING do not allow transfers in.

Goldeagle1

I didn't mean specifically transfer it from one ISA to the other. I was planning to withdraw the money from one ISA (my partners) and pay it into the ING ISA myself. Is that allowed?

jem16

It's allowed but it would count as part of your £3k allowance. If it's transferred you would still have the whole £3k allowance plus the £1k transferred.

Paul_Herring

Goldeagle1 wrote:

I was planning to withdraw the money from one ISA (my partners) and pay it into the ING ISA myself. Is that allowed?

jem16 wrote: »

If it's transferred you would still have the whole £3k allowance plus the £1k transferred.

Note that if it is transferred, it would remain as your partner's and doesn't become yours.

Milarky

Goldeagle1 wrote: »

I have had £1000 in a Halifax ISA for a year, but not really sure how they work. The interest gets paid yearly - I assume in April at the end of the tax year.

This will work - via a withdrawal which you then pay into ING as a 'new ISA subscription' but only provided the old subscription (to Halifax) was not made during the present tax year. If it comes out in your partner's name and goes back in yours that's different of course. Then as long as you personally have not subscribed to an ISA this year already you will be OK. But if it is your partner's money you both will need to be aware that the money then becomes 'yours' for all practical purposes - and will not be 'joint monies'.