Opening/Transferring more than once ?

Wheres_My_Cashback

Currently have 2 x old separate cash ISA's.

1st - Santander ISA, rate drops in a few days
2nd - M&S is a FRISA until 30/April

Have already opened NEW ISA with FD for this tax year to get the 3.00% rate. Nothing deposited or transferred into it yet.

Can I open another ISA with Santander to transfer funds from ISA 1 and deposit this years allowance - to get a higher rate (temporarily), then transfer out again at end of April into the already opened FD ISA where I will also transfer from M&S, thereby having all funds plus this years allowance all in one place come 1st May.

Does that contravene the rules? Yes it's a lot of work, but want to keep my money in highest paying accounts at all times and this is only way I can do it because of FD's tiering rates.

innovate

Wheres_My_Cashback wrote: »

Currently have 2 x old separate cash ISA's.

1st - Santander ISA, rate drops in a few days
2nd - M&S is a FRISA until 30/April

Have already opened NEW ISA with FD for this tax year to get the 3.00% rate. Nothing deposited or transferred into it yet.

Can I open another ISA with Santander to transfer funds from ISA 1 and deposit this years allowance - to get a higher rate (temporarily), then transfer out again at end of April into the already opened FD ISA where I will also transfer from M&S, thereby having all funds plus this years allowance all in one place come 1st May.

Does that contravene the rules? Yes it's a lot of work, but want to keep my money in highest paying accounts at all times and this is only way I can do it because of FD's tiering rates.

Yeah, that would all work as described. Not sure why you would pick Santander though if you are on the hunt for the best rate - - best instant access (which is what you would need for your plan) there is now 2%.

helptoyou

Hi,

Yes you can do this but be aware the first direct ISA is a tiered rate and you only receive 3% once the balance is 40k plus see below.

Cash ISA rates
Balance AER Tax free
£1+ 0.50% 0.50%
£5,000+ 1.20% 1.19%
£10,000+ 1.70% 1.69%
£20,000+ 2.20% 2.18%
£40,000+ 3.00% 2.96%

Wheres_My_Cashback

innovate wrote: »

Yeah, that would all work as described. Not sure why you would pick Santander though if you are on the hunt for the best rate - - best instant access (which is what you would need for your plan) there is now 2%.

Simply because that's where the ISA 1 funds already are, therefore a painless switch over (which can be done with a quick call) to the new higher rate just for a few weeks until the M&S funds become available. Then I move those and the new Santander straight over to FD at 3%.

Any problems you foresee with that ?

innovate

Wheres_My_Cashback wrote: »

Simply because that's where the ISA 1 funds already are, therefore a painless switch over (which can be done with a quick call) to the new higher rate just for a few weeks until the M&S funds become available. Then I move those and the new Santander straight over to FD at 3%.

Any problems you foresee with that ?

sorry, didn't realise you already have the Santander ISA.

Sound plan then

Wheres_My_Cashback

But would mean technically depositing this years allowance in two ISA's, first the Santander and then the FD ?

Vortigern

Wheres_My_Cashback wrote: »

But would mean technically depositing this years allowance in two ISA's, first the Santander and then the FD ?

No it wouldn't. OP would deposit once, and transfer once.

Wheres_My_Cashback

Ok deposit in one, transfer to another, but all in same tax year, that;s ok ?

Vortigern

Wheres_My_Cashback wrote: »

Ok deposit in one, transfer to another, but all in same tax year, that;s ok ?

Yes...................

Wheres_My_Cashback

Ok, final uncertainty, so you know Both ISA's will have been opened this tax year. Don't want to screw this up and fall foul of rules.

Vortigern

Wheres_My_Cashback wrote: »

Ok, final uncertainty, so you know Both ISA's will have been opened this tax year. Don't want to screw this up and fall foul of rules.

You can open as many as you like. You can only subscribe new money to one. Your plan is good.