ISA rules - can I move my ISA the same year I opened it?

fierydormouse

I apologise in advance as this may be a completely obvious question, but I don't want to run foul of the rules!

I have a Marks and Sparks cash ISA which I opened this year, and the rate has plummeted since I opened it in Sept. I have paid in my full ISA allowance for this year. I have no ISA savings prior to the year 2012/13.

Can I move it to another provider or do I have to wait until the next tax year? I ask because I am looking at applying to Santander and it says
"You can only pay into one cash ISA each tax year.."

Since I've already paid into one this year, this makes it sound like I have to stick with it - but this seems utterly unfair when the rate has gone through the floor! Surely the system can't really allow banks to offer a rate, withdraw it, and trap you til the next tax year?! I must have got that wrong! (I hope!)

Many thanks for any advice & sorry for newbie stupidity :-) xxx

bigchipper

I opened an M&S ISA too and am in the process of moving it to the Cheshire. I'm sure its ok you just cant open another if you have used our full allowance.

oldfella

assuming its not a fixed term, then you can move it whenever you like

anotheruser

But then the Santander one for this coming tax year says:

Deposits for 2013/14 tax year can be made up to and including 30 May 2013. No subsequent additional deposits.

So if we were currently in this time next year then you wouldn't be able to move it to their ISA account as it must be with them by last May.

kidmugsy

My memory is that you can transfer a current year ISA as long as you transfer all of it.

VfM4meplse

fierydormouse wrote: »

Since I've already paid into one this year, this makes it sound like I have to stick with it - but this seems utterly unfair when the rate has gone through the floor! Surely the system can't really allow banks to offer a rate, withdraw it, and trap you til the next tax year?! I must have got that wrong! (I hope!)

Many thanks for any advice & sorry for newbie stupidity :-) xxx

It's the wording that's misleading, I have had ISAs for years and had to think twice before making a transfer that I knew was possible - just because of the way the T&Cs were worded.

Rates are dire atm, wherever you turn. If you apply to another provider now, I think it's unlikely that you'll see the money change accounts before the new tax year. It does of course depend on the speed of the request, plus we have 2 working days taken out for Easter btwn now and then.

badger09

anotheruser wrote: »

But then the Santander one for this coming tax year says:



So if we were currently in this time next year then you wouldn't be able to move it to their ISA account as it must be with them by last May.

You keep quoting these T&Cs without mentioning that they refer to a Fixed Rate/Fixed Term ISA :cool:

Invariably, Fixed Term/Fixed Rate ISAs have a short timeframe in which you can pay in or transfer in (if allowed). This one is not unusual in that respect.

If you look at Santander's Direct ISA, you will see no such conditions as it is instant access - meaning you can add to it (within HMRC limit) and withdraw as you please.

You're comparing apples and pears which could confuse people:(

badger09

fierydormouse wrote: »

I apologise in advance as this may be a completely obvious question, but I don't want to run foul of the rules!

I have a Marks and Sparks cash ISA which I opened this year, and the rate has plummeted since I opened it in Sept. I have paid in my full ISA allowance for this year. I have no ISA savings prior to the year 2012/13.

Can I move it to another provider or do I have to wait until the next tax year? I ask because I am looking at applying to Santander and it says
"You can only pay into one cash ISA each tax year.."

Since I've already paid into one this year, this makes it sound like I have to stick with it - but this seems utterly unfair when the rate has gone through the floor! Surely the system can't really allow banks to offer a rate, withdraw it, and trap you til the next tax year?! I must have got that wrong! (I hope!)

Many thanks for any advice & sorry for newbie stupidity :-) xxx

As you have an instant access ISA it can be transferred at any time.

Don't try to move it yourself though, or you'll lose the tax free status :eek:

Choose a new provider which allows transfers in and use their transfer process.

Have a look here - the first post is kept up to date
https://forums.moneysavingexpert.com/discussion/401374

fierydormouse

Thank you, all - I should have clarified upfront - my current ISA (M&S) is instant access and I would be transferring it to another instant access.

Sounds like I can go ahead anyway - thanks folks!

anotheruser

badger09 wrote: »

You keep quoting these T&Cs without mentioning that they refer to a Fixed Rate/Fixed Term ISA :cool:

You're comparing apples and pears which could confuse people:(

Hmm, I didn't realise there was a difference.
More reading I think.
And a visit to the bank.

grey_gym_sock

or to the greengrocer