Swapping Isa's advice please.

Chez2k

Hi,

I have a question about swapping isa's. I have a bog standard isa with Halifax and want to swap to one wih ing as it has a better rate.

The ing bank doesn't let you transfer in from any isa. If I opened the ing Isa could I just write to Halifax and cancel the one with them? There is nothing in the account.

Thanks
:-)

innovate

You cannot cancel an ISA. You can request a new ISA provider to transfer funds from an old ISA. Don't do it yourself, you will lose your tax-free status.

ING, although Barclays have announced intentions to buy their UK operations, is not currently covered by the FSCS guarantee. So your money could disappear down the pan if you request the transfer before Barclays have completed their purchase.

Current best ISAs:
https://forums.moneysavingexpert.com/discussion/401374

Chez2k

Thanks for the reply. I wont bother with ING then, it sounds like it is a bit dodgy!

I will have a look at that link.

I have not deposited anything into the account for years.
Would the best option be to find an account that has a transfer service?

Thanks

(sorry for the duplicate post across to forums - I posted in the wrong one at first).

innovate

You probably get a miserable amount of interest for you existing ISA then?

Reality is, you have to move(*) your ISA money every so often (once a year, unless you have a multi-year arrangement).

(*): never move your funds yourself. Always ask your new provider to make the transfer. That way, you retain the tax-free status your ISA has earned.

Chez2k

Yep, I dont know exactly what the current interest rate is (I need to check) but it will be rubbish!

Even if there are no funds to transfer do I still need to fill in a transfer form to ensure the closure of the old account?

Thanks

innovate

Nah, if there is nothing in the old account, there's no need to bother with any transfer. Your bank/BS will eventually close the account, I wouldn't worry. I won't show on any credit files, it won't stop you from doing whatever you want to do.

fiesta04

Just wondered if you are going to put any money into a new ISA if you open one??

F4

Chez2k

Yes fiesta04. I will be putting money in the new one. This is why I want to swap to one with better interest.

fiesta04

In that case open the Post Office ISA in the link at the top of this page. Then you can see what is on offer end of March for 2013/14 ISA deals.

There will be plenty of advice flying around then to consider.

Happy saving

F4