Old ISA and New Isa Transfer

spluff

I have an AA isa which turns to 0.5% this month - I put 5k in around 10 Mar 12 for that previous tax year and 5k for this current tax year.

I am wanting to move it all and then put in another 5k for this coming tax year.

What is the best way to do this? I dont want to lose my interest as it has not been paid yet.

Many Thanks

MoneySaverLog

If the ISA is instant access then you wont lose your interest. You'll be paid interest up until the point the ISA is transferred to your new provider. Just make sure that the new provider does the transfer and you don't go taking the money out to do this yourself.

spluff

So I ask them to transfer my existing money to whatever account and then in new tax year i move in the other 5k in new tax year?

The interest then is paid into my AA and i move that out and close?

MoneySaverLog

You'll need to open a new ISA and complete a transfer form with that new provider.

Then all the money in your old ISA, along with the interest, will be moved to your new ISA and your old ISA will then be closed.

System

There is usually a box on the transfer form where you can specify the date when you want the change to be effective.
But be careful if re-investing within the same provider but opening a new ISA.
Virgin money for example provide a link from the existing ISA where you can open a new one but specify that you want it to be effective from the date the old one finishes, so you don't lose any interest.
But if you open the new one first and specify the source of funds as your old ISA, they will move the money immediately and you will incur the penalty and loss of interest.

SallySunshine

I'm getting slightly confused as well:(

Say I open a new ISA with Santander at the start of the new tax year for 2yrs 3% fixed, then I transfer in my old M&S one on maturity 15th April.

say the M&S one takes 10 days to transfer, so in theory my old old will not start until May, although I read in Santanders T&C that interest on transfers in would be paid from the day of maturity.

So in reality I'm getting interest of 2yrs on new one and less than 2 yrs on transfer.

Also, because I was told by advisor that in fact the ISA is 2yrs 1 month anyway because they actually start the 2yrs timeframe at the start of the next month it was actually opened.

That information is flashed up at the Santander website where the advert of the Racing Drivers are but it is a very short ad and I never have time to read the tiny print!

Think I'll make an appointment at my local Santander, although the on-line advisors are very helpful I was switching to the 123 account at the time and then ended up with the ISA advisor.

Too much info at once to take in:eek:

badger09

SallySunshine wrote: »

I'm getting slightly confused as well:(

Say I open a new ISA with Santander at the start of the new tax year for 2yrs 3% fixed, then I transfer in my old M&S one on maturity 15th April.

say the M&S one takes 10 days to transfer, so in theory my old old will not start until May, although I read in Santanders T&C that interest on transfers in would be paid from the day of maturity.

So in reality I'm getting interest of 2yrs on new one and less than 2 yrs on transfer.

Also, because I was told by advisor that in fact the ISA is 2yrs 1 month anyway because they actually start the 2yrs timeframe at the start of the next month it was actually opened.

That information is flashed up at the Santander website where the advert of the Racing Drivers are but it is a very short ad and I never have time to read the tiny print!

Think I'll make an appointment at my local Santander, although the on-line advisors are very helpful I was switching to the 123 account at the time and then ended up with the ISA advisor.

Too much info at once to take in:eek:

I assume you're referring to the 123 Exclusive Major Fixed Rate ISA.

This was first available 11 March 2013 and matures on 1 May 2015, so not precisely 2 years, unless you open it on 2 May 2013 (assuming its still on offer then )

In your scenario above, you'll be getting the 3% interest for a bit more than 2 years

http://www.santander.co.uk/csgs/StaticBS?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1223430780770&cachecontrol=immediate&ssbinary=true&maxage=3600

SallySunshine

Thanks badger09,
I'm so used to fixed deposit bonds that are precisely the given timeframe, so if it says 2 years it means exactly 2 years from the date you opened them.

So, it looks like I can open a new ISA now for 2013 but not fund it until April 6th and also fill in a transfer form to take place on maturity on April 15th.
Therefore getting a little over 2 yrs with new money and a month less than 2 yrs with transferred money.

Can't believe I'm so dense, I did exactly this 3 years ago.:(
Having said that it was exactly 3 years from the date I opened it with M&S.