Isa Transfer Question

Henno

Hi,

I currently have an ISA with halifax and im thinking about moving it to santander. It might be a stupid question, but when do i need to do this by?

I am yet to receive my interest in my halifax account for the current year (2012/2013). Do i wait till i receive this before switching or do i need to switch now (before the 4th april date)?

If i do switch now, will i still get my interest from halifax? ... im new to this ...

Thanks

badger09

Henno wrote: »

Hi,

I currently have an ISA with halifax and im thinking about moving it to santander. It might be a stupid question, but when do i need to do this by?

I am yet to receive my interest in my halifax account for the current year (2012/2013). Do i wait till i receive this before switching or do i need to switch now (before the 4th april date)?

If i do switch now, will i still get my interest from halifax? ... im new to this ...

Thanks

If your ISA with Halifax is instant access you can transfer whenever you like. Halifax will calculate the interest due up to the date of transfer and add it to your balance.

NB DON'T try to transfer it yourself - ask Santander to do it for you.

Henno

Thanks, does this mean im still able to do it after the 4th april date then? And if so, why do they state this date?

Thanks again.

thenudeone

As far as tax rules are concerned, the dates are only relevant if you are adding new money into an ISA. A transfer of an ISA in full can always be done at any time and the tax year end has no relevance.

However, any bank or BS can decide how and when it will stop opening new accounts of any type, including ISAs. Sometimes they will publish the date in advance, sometimes not.

As long as the account doesn't have any penalties for early withdrawal, you will always receive interest for the days money was invested. It will be added immediately before the account is closed or transferred.

dru83

Hi All,

I have a similar question if anyone can help?

I also have a Halfax ISA paying 0.1% (have finally decided to get organised and transfer) so I applied for and opened a Santander account. I sent off the form to transfer the Halifax ISA over to the Santander ISA last night but not sure it will go through in time?

So the question is, can I open another ISA with Halifax and put money in that - (I can put in the max ammount) then transfer it if I want to?

Or will the transfer go through in which case I can just open another account after the deadline or pay more into the Santander account?

Hope that makes sense!

latecomer

The tranfer will take weeks - if you need to fund an ISA for this financial year (12-13) then open a new one with Santander if thats where you want them to be held. you could open a new halifax one and then transfer but its more effort overall.

dru83

Thanks latecomer.

One question - if I have opened a Santander ISA and applied for my Halifax ISA to be transfered across but then try to open a new ISA, does that not qualify as opening 2 ISA's in the same tax year?

Basically I havent paid into my current Halifax ISA this tax year and want to make use of the allowance and then open another one after the deadline passes...

Henno

thenudeone wrote: »

As far as tax rules are concerned, the dates are only relevant if you are adding new money into an ISA. A transfer of an ISA in full can always be done at any time and the tax year end has no relevance.

However, any bank or BS can decide how and when it will stop opening new accounts of any type, including ISAs. Sometimes they will publish the date in advance, sometimes not.

As long as the account doesn't have any penalties for early withdrawal, you will always receive interest for the days money was invested. It will be added immediately before the account is closed or transferred.

Thank you, makes more sense now.

dru83

Just wondering if anyone can tell me if I have opened a Santander account and applied to transfer my ISA from Halifax does that count as 'subscribing' to an account this year if the transfer wont happen until next week?

I haven't paid in to my ISA this tax year so trying to find out if I can open another new account and pay into it before tonight's deadline....obviously I would assume the Santander account I am transferring from Halifax would count as next years allowance....

rb10

dru83 wrote: »

Just wondering if anyone can tell me if I have opened a Santander account and applied to transfer my ISA from Halifax does that count as 'subscribing' to an account this year if the transfer wont happen until next week?

I haven't paid in to my ISA this tax year so trying to find out if I can open another new account and pay into it before tonight's deadline....obviously I would assume the Santander account I am transferring from Halifax would count as next years allowance....

A transfer doesn't count for either years' allowance. Your allowance is only relevant when you pay new money into an ISA.

Why not just add your 2012/13 allowance to the existing Santander ISA?