ISA clarification please

alanbee

Hi,
I currently have an ISA that has its maximum amount in it for 2012-2013. I don't have much saved so I want to make the best of it. I have a few questions that need clarifying, appreciate the help.

I need to move the ISA I have as the rate drops down to virtually zero so can I open a new 2013-2014 ISA now (before year 2013 ends) and secondly, if I do open the new ISA now do I wait until 6th April to transfer my current ISA in or will they do it automatically for me on that date?

Everything I read about ISA's now is relating to putting money in now before this year ends. My interest is ready for the new tax year,

Many thanks

Yorkie1

You can open a new ISA before the end of this tax year but you cannot put any new money into it until 6 April.

Make sure it accepts transfers in - you get the new provider to action the transfer; do NOT close the old account as you lose that year's allowance.

If the current ISA does not have a fixed term (or, it did but it's now expired) then there is no reason for the new provider to wait until 6 April to start the transfer. A transfer does not count as new money; you're just changing the 'envelope' in which you hold the 2012-13 money.

alanbee

Excellent
Thanks for your help