Transferring previous years plus opening a new ISA for 2007/8

purplestar133

I know a similar question has been asked but I have a few other questions aswell! I'm afraid I need it spelling out!

I have a bit less than £6000 in A&L Direct ISA Issue 2 built up from 2005/6 and 2006/7. I believe I can transfer this to a new provider, and leave it there and open a new ISA with a different provider for me to put savings in, in this new tax year 2007/8. Can anyone tell me whether this is right?

I also have a few other queries!

Because the ISAs with the highest interest rates such as Barclays, tend to not allow previous years cash to be transferred in, as far as I can see, I would have to transfer to one with a slightly lower interest rate, perhaps Yorkshire BS, which I think is 5.65. Would I benefit more from putting my previous years cash in YBS, for example, plus what I will save this current year, as there will be a larger balance in there....or...will I benefit more from opening a higher rate new ISA for this year's savings in addition to the one holding previous years' cash?

Hope that makes sense!

Also, I have left my previous years' savings alone since the end of March 07. Now that the new tax year has started, can I withdraw some money from there before I transfer it to another provider? Or would that make the account active as a 2007/8 ISA, and hinder me in opening a new ISA?

Thanks in advance. I've got to say being able to get advice from the wealth of moneysavers on here is so useful for a young 'un like me, still learning about financial stuff!

jem16

purplestar133 wrote: »

I know a similar question has been asked but I have a few other questions aswell! I'm afraid I need it spelling out!

I have a bit less than £6000 in A&L Direct ISA Issue 2 built up from 2005/6 and 2006/7. I believe I can transfer this to a new provider, and leave it there and open a new ISA with a different provider for me to put savings in, in this new tax year 2007/8. Can anyone tell me whether this is right?

Yes you can do that.

Because the ISAs with the highest interest rates such as Barclays, tend to not allow previous years cash to be transferred in, as far as I can see, I would have to transfer to one with a slightly lower interest rate, perhaps Yorkshire BS, which I think is 5.65. Would I benefit more from putting my previous years cash in YBS, for example, plus what I will save this current year, as there will be a larger balance in there....or...will I benefit more from opening a higher rate new ISA for this year's savings in addition to the one holding previous years' cash?

You would be better to put the new money into the highest payer. Think of it this way - the £3k is either earning 5.65% or 6.5%. The only way this might change is if the extra money gave a greater rate of interest. For example Abbey where it is 5.75% for balances over £9k.

Also, I have left my previous years' savings alone since the end of March 07. Now that the new tax year has started, can I withdraw some money from there before I transfer it to another provider? Or would that make the account active as a 2007/8 ISA, and hinder me in opening a new ISA?

It's only active if you pay money into it. However remember if you withdraw it you can never replace it.

Thanks in advance. I've got to say being able to get advice from the wealth of moneysavers on here is so useful for a young 'un like me, still learning about financial stuff!

It's good that you are interested in learning from a young age.

purplestar133

Thanks for your help and reassurance Jem, I appreciate it!

ED

Northern Rock offer 6.01% for purely transferred-in past ISA funds - or indeed with current-year funds, if desired.

frivolous_fay

Is it possible to transfer in more than one ISA to a new one - ie. merge multiple accounts?

jem16

frivolous_fay wrote: »

Is it possible to transfer in more than one ISA to a new one - ie. merge multiple accounts?

Yes it is possible to do that.

cs95aam

I'm a bit confused about how one can open 2 ISAs for 2007/2008. One for transferring in last year's ISA and one simply for saving this year's £3k.

I'm currently with A&L (I need to transfer fast due to the bonus rate ending end of April 2007) and I thought of Abbey for transferring in last year's ISA and Barclays for the £3k. However, when I spoke to Abbey they said I'd need to deposit atleast £1 to open it. I've noticed that for Kent Reliance BS too. That would mean I'd have to put the remaining £2,999 in Abbey aswell. I wouldnt be able to open the Barclays ISA.

Is there something I'm missing? Is there a special sort of ISA where you can just transfer last year's ISA without adding any of my 2007/2008 contributions?

jem16

cs95aam wrote: »

I'm a bit confused about how one can open 2 ISAs for 2007/2008. One for transferring in last year's ISA and one simply for saving this year's £3k.

I'm currently with A&L (I need to transfer fast due to the bonus rate ending end of April 2007) and I thought of Abbey for transferring in last year's ISA and Barclays for the £3k. However, when I spoke to Abbey they said I'd need to deposit atleast £1 to open it. I've noticed that for Kent Reliance BS too. That would mean I'd have to put the remaining £2,999 in Abbey aswell. I wouldnt be able to open the Barclays ISA.

Is there something I'm missing? Is there a special sort of ISA where you can just transfer last year's ISA without adding any of my 2007/2008 contributions?

Whoever you spoke to at Abbey obviously hadn't got a clue!

I have just transferred my ISA to Abbey from the Halifax. I do not intend using my cash ISA this year as I have opened a Maxi ISA instead. On the application form you have 2 choices;

1. Open an ISA by funding it OR
2. Open an ISA by transferring

You can transfer with no new funds or transfer and add new funds.

Download the application form from here and simply take it into a branch with your ID

Abbey Direct ISA application form

or fill in the application online.

cs95aam

Thanks for your help. I popped down to Abbey this afternoon but they couldnt make time for me and for some reason I couldnt enter my A&L ISA account number on the online form. I'll call them up on Monday and persevere

jem16

I just handed mine in at the counter. ID was photocopied and returned. Took all of 5 minutes.

I think I had read someone else saying that the A&L account number was too long.