Transfering old ISAs from the same provider

pcuk1979

So my 2012/2013 allowance was used up a while ago, and I now have the maximum 2013/2014 amount ready to pay into a new ISA once the new ISA year starts.

My 2012/2013 was with Santander and matures on May 1.

If the best ISA for new money in 2013/2014 is with Santander as well, would I be able to transfer this ISA (following the usual rules), even though they're both from the same provider?

latecomer

Yes - I did this in branch last year at Santander , took a few minutes. I'm sure you also do it by phone, not sure about online but I would guess its possible.

pcuk1979

Thanks

So I guess the plan is

April 6 - open the best 2013/2014 ISA and pay in the full allowance of new ISA money

May 1 - I have two existing ISAs (one from Santander) - transfer these over to the ISA I got in April.

After that I can start looking at savings accounts.

VodkaSorbet

I know this isn't directly what you're asking, but if you have the Santander 1 year fix for 2012/13 (3.5%), they won't let you open a new ISA for transfers with them until the previous one matures.

At least, that's what they told me in the branch.

They said because it is the same provider you can't open a new ISA now, start the transfer process but opt to serve notice.

So I wasn't able to open the 2.5% easy access account now to transfer my previous ISA into on 1 May when it matures.

They told me to come in to the branch a couple of days before 1 May and see what's available then.

I have taken my ISA elsewhere in case they don't have the 2.5% rate available in the new tax year :-)

pcuk1979

That's really good to know. I do have the 2012/13 3.5 fix.

Is there any reason why they're saying you can't? Or is it more a case of they won't.

Fingers crossed that once 2013/2014 starts, there's a better paying option than Santander then. I'm planning on buying a house in the next 6-12 months, so I really need all my money in one, easily accessible place.

The mortgage alone will produce enough paperwork!

VodkaSorbet

I'm not hugely clued up on ISA procedures, but I suspect it's a case of 'won't', in that they can make their own rules for their own products as long as they don't contravene the government's ISA rules.

On the other hand, I could just have been mis-advised in my branch.

I have 4 years' allowance in that ISA and that's a fair chunk of money to have sitting around at 0.5% when it matures, so I have started a transfer to another provider now just to secure a guaranteed rate over 2%. I'm putting it into an instant access account so I can transfer it again if anything better happens to come up later in the tax year.