Cash ISAs: The Best Currently Available List

Baldur

adindas wrote: »

Could I transfer it by myself using Online transfer, as both are ISA account ? or I have to do it within ISA transfer mechanism, where I need to complete the transfer form. If the latter prevail than there is no point, as I will loose a few days interest, also it is too much hassles.

No you cannot transfer any ISA funds yourself, ISA transfers have to be carried out by the new ISA provider.

B'stard

Thanks to the OP for the info

System

adindas wrote: »

How about another possibility. I currently have ISA direct reward with Halifax which pay 3+0.2% Interest rate.

Is it possible to dripfeed from HALIFAX ISA direct reward to the Nottigham BS starter ISA ? At least part of the ISA money is gradually moved from lower to the higher interest rate, from 3.2 - 5% ?

Could I transfer it by myself using Online transfer, as both are ISA account ? or I have to do it within ISA transfer mechanism, where I need to complete the transfer form. If the latter prevail than there is no point, as I will loose a few days interest, also it is too much hassles.

If you could provide your comments or experience, please ?

Thank you
ADINDAS

Have you read my post #2396 ?

The Nottingham Starter ISA account does NOT allow any transfers in.

And I explained how you could use online banking to withdraw from the old ISA and make a payment into the Nottingham ISA

But to give a step by step guide on how you could do this...

You will need a current account and your ISA Direct Reward account with Halifax so that you can access both accounts via Halifax online banking. The current account is needed because standing orders cannot be setup on ISA accounts.

• Set up a monthly transfer of £445 from the ISA Direct Reward into the Halifax Current account on the 1st of the month
• Set up a standing order on the Halifax current account to pay £445 to the Nottingham Starter ISA account on the 10th of the month - this allows a few days to ensure the funds get to the current account before the payment is due.

System

One other major consideration that you seem to have ignored...

The interest you will earn at 3% AER on £5340 in the Halifax ISA Reward over 12 months will be approx £160

But, paying in £445 pcm to Nottingham at 5% AER will only earn approx £86 interest by the end of the 12 month term.

So why would you want to use the Nottingham account ?

adindas

Dear BAA1
Thank you for your reply. I have used all my Casg ISA allowance for this year e.g. £5,340.

I think the way you describe is not going to work as once I transfer it from my ISA direct i4, it will loose its "ISA Privilage" and can not be transfered it to any other ISA ?

I fully believe that other member might be interested, as there are some peole outthere are interested to get a higher interest rate. if we could find a convenient way of how to move it from lower interest to higher interest it will (dripfeed), we coud all benefit it.

BAA1 wrote: »

Have you read my post #2396 ?
You will need a current account and your ISA Direct Reward account with Halifax so that you can access both accounts via Halifax online banking. The current account is needed because standing orders cannot be setup on ISA accounts.

• Set up a monthly transfer of £445 from the ISA Direct Reward into the Halifax Current account on the 1st of the month
• Set up a standing order on the Halifax current account to pay £445 to the Nottingham Starter ISA account on the 10th of the month - this allows a few days to ensure the funds get to the current account before the payment is due.

System

adindas wrote: »

Dear BAA1
Thank you for your reply. I have used all my Casg ISA allowance for this year e.g. £5,340.

I think the way you describe is not going to work as once I transfer it from my ISA direct i4, it will loose its "ISA Privilage" and can not be transfered it to any other ISA ?

I fully believe that other member might be interested, as there are some peole outthere are interested to get a higher interest rate. if we could find a convenient way of how to move it from lower interest to higher interest it will (dripfeed), we coud all benefit it.

I think you are just trying to waste our time, you did not say anything about already subscribing your full allowance this year. :wall:

adindas

Sorry for confusion ... Appreciate your time answering my query ...

BAA1 wrote: »

I think you are just trying to waste our time, you did not say anything about already subscribing your full allowance this year. :wall:

easilyconfused_2

My wife is worried she has subscribed to 2 cash ISAs in 2010/2011. Last July she subscribed £100 of her ISA allowance to a fixed-rate Santander ISA which matured last January. She immediately transferred it to an M&S fixed-rate ISA which didn't allow any further additions. So she had £5000 of unused ISA allowance. She contacted the AA who told her she could open a variable-rate new-money-only ISA with them, so she did so in March with another £500 of her 2010/2011 allowance.
Isn't it against the rules to subscribe to more than one cash ISA (in this case Santander and the AA) in the same tax year? The AA said it was OK. Should she do anything about this?

Froggitt

It is against the rules. Contact HMRC - its below the annual limit, so no harm done. See what they say.

MarkyMarkD

There's no point contacting HMRC.

They will find out themselves when they collate the ISA returns from the two providers, and they'll send her a letter telling her she's made a mistake.

If it's her first offence, they will then do nothing about it.

But, reading what you said again, if she TRANSFERRED the ISA to M&S, it wasn't a subscription and she didn't subscribe to two ISAs in the same tax year. It would only be a breach of the ISA rules if she actually CLOSED the first £100 ISA and then SUBSCRIBED the same funds to another £100 ISA, rather than using the proper transfer method.