Cash ISA rules question (Nationwide)

Blackdog

Hi,
I would be really grateful for advice for a relative on the following:

A Nationwide fixed term cash ISA is maturing before the end of March and the holder also has a Nationwide Champion ISA which they have contributed £3k in the current tax year. The intention is to reinvest the fixed rate ISA into a new Nationwide fixed rate ISA. Is it allowable to also contribute an additional £1k by cheque AND transfer £4k from the Champion ISA into the new fixed rate ISA?
Also will the transfer from the Champion ISA (if allowable!) count as a withdrawal under the one free withdrawal allowed each year rule.
Thanks in advance for your help.

innovate

Blackdog wrote: »

Hi,
I would be really grateful for advice for a relative on the following:

A Nationwide fixed term cash ISA is maturing before the end of March and the holder also has a Nationwide Champion ISA which they have contributed £3k in the current tax year. The intention is to reinvest the fixed rate ISA into a new Nationwide fixed rate ISA. Is it allowable to also contribute an additional £1k by cheque AND transfer £4k from the Champion ISA into the new fixed rate ISA?
Also will the transfer from the Champion ISA (if allowable!) count as a withdrawal under the one free withdrawal allowed each year rule.
Thanks in advance for your help.

You are most unlikely to get the best ISA interest rate a Nationwide at present. Check out the ISA board for best rates.

Provided that you follow the formal transfer process, your transfer from one ISA to another will not count as a withdrawal, and the transfer will not count towards your annual allowance. The formal transfer process involves that you ask the new provider to make the transfer for you.