Combing cash ISAs

NeilNand

Hello,

Sorry if this has already been covered but I have used the search facility here and Google and cannot find a clear answer to what I want to know.

I have two ISAs, one from last year and another from the year before, they both have taken full advantage of the tax free allowance in each year but the accounts they are in have recently lost their bonus interest rate so I'll be transferring them to other accounts soon.

What I am wondering is can I transfer both of these ISAs into one ISA and still get all the benefits of them being in separate ones? Which as far as I'm aware is just the TAX free allowance.

Thanks for any help you can provide in advance,
Neil.

badger09

NeilNand wrote: »

Hello,

Sorry if this has already been covered but I have used the search facility here and Google and cannot find a clear answer to what I want to know.

I have two ISAs, one from last year and another from the year before, they both have taken full advantage of the tax free allowance in each year but the accounts they are in have recently lost their bonus interest rate so I'll be transferring them to other accounts soon.

What I am wondering is can I transfer both of these ISAs into one ISA and still get all the benefits of them being in separate ones? Which as far as I'm aware is just the TAX free allowance.

Thanks for any help you can provide in advance,
Neil.

Hi Neil

Yes you can combine your 2 ISAs into one which has a better rate, and retain the tax free status of all the money in them. You must use your chosen new provider's transfer process though. If you transfer the money yourself you lose the tax free status :eek:.

Have you paid into an ISA since 6th April 2012?

NeilNand

badger09 wrote: »

Hi Neil

Yes you can combine your 2 ISAs into one which has a better rate, and retain the tax free status of all the money in them. You must use your chosen new provider's transfer process though. If you transfer the money yourself you lose the tax free status :eek:.

Have you paid into an ISA since 6th April 2012?

Hello,

Thanks for the reply it has been very useful as I haven't been able to find such a clear cut answer to my question elsewhere on the Internet.

Yes I have already created a new ISA since April 2012.

Corsaowner

Are there any ISA's which will accept transfers from other providers previous years without opening a new account? This is probably what NeilNand and some others of us want. We have already opened an ISA this year and are up to our limit but have previous years fixed rate ISA's maturing now and likely to be transferred to a low paying account. This means we are not really getting the advertised rate over this tax yera as half will be at 3.3% and the other at 1.75%. CO

innovate

Corsaowner wrote: »

Are there any ISA's which will accept transfers from other providers previous years without opening a new account?

You would need to open a new account with a new provider, for the sole purpose of transferring your old ISA(s). All the providers who allow transfers in will allow transfer from other providers.

You can open these accounts regardless of whether you already put new money into this year's ISA. Transfers do not count towards your annual ISA allowance.

All transfers must be done by the new provider. They all have transfer forms which you need to sign.

badger09

NeilNand wrote: »

Hello,

Thanks for the reply it has been very useful as I haven't been able to find such a clear cut answer to my question elsewhere on the Internet.

Yes I have already created a new ISA since April 2012.

You're very welcome.

The reason I asked if you had paid into an ISA since 6th April 2012 is because if you also wanted to transfer those funds, you'd have to keep them all together.

Previous year's contributions can be split up as you choose, but current year's contributions must be kept together.

Whatever you decide, ALWAYS use the new provider's transfer process.

thenudeone

If you want, you can also split up prior year ISA balances. For example - put half in a high rate notice ISA and half in an instant access ISA with a lower rate at a different bank. Although an few providers won't allow partial transfers in.