ISA Transfer question

wildest_jjk

Hi all,

I have currently been waiting for my ISA to mature on the 16th April. However I wanted to clarify a couple of things.

Basically if I were to open a new ISA for the 2013/14 tax year on or after 6th April but then did not choose to transfer at the moment (it would be a transfer allowed ISA). Can I start using my allowance for the new tax year and then transfer my current ISA in once it has matured on the 16th, can it be anytime during the 13/14 tax year?

I am finding the whole transfer process a bit confusing as I want to make the most of the higher rate, seeing as they have all dropped.

Thanks in advance

typistretired

If you open a new isa for 2013-2013 which allows transfers in, you can complete a transfer request form immediately, for them to arrange the transfer of your maturing isa. Just make sure you tick the box that states you want it transferred when the notice period is up

RoxRoxBling

wildest_jjk wrote: »

Basically if I were to open a new ISA for the 2013/14 tax year on or after 6th April but then did not choose to transfer at the moment (it would be a transfer allowed ISA). Can I start using my allowance for the new tax year and then transfer my current ISA in once it has matured on the 16th, can it be anytime during the 13/14 tax year?

Yes as long as your new isa allows transfers in, and your current isa has no penalties on transferring out.
Yes Any time in year 2013-14 will be ok, but the sooner you transfer the sooner you get the interest.

Just remember, all of the money you put in tax year 2013-14 has to stay together in one pot.

innovate

RoxRoxBling wrote: »

Just remember, all of the money you put in tax year 2013-14 has to stay together in one pot.

Only the new money. You can put the transfered money from old ISAs into any ISA that suits.

wildest_jjk

This is what the ISA application says below. My old ISA was only an instant access and matures on the 16th. So what do I select here?

• Serve the full notice period before the transaction can be processed
• Proceed immediately with the transfer and pay any charge or loss of interest that may apply to my account

Thanks

RoxRoxBling

Serve the full notice period before the transaction can be processed

innovate

wildest_jjk wrote: »

This is what the ISA application says below. My old ISA was only an instant access and matures on the 16th.

An instant access ISA doesn't mature. Only fixed term ones do. So which one do you have?

wildest_jjk

Er it's the Direct ISA Issue 9 with Santander. It's instant access and just says the rate will drop after 12 months which is why I am confused.

Thanks

RoxRoxBling

wildest_jjk wrote: »

Er it's the Direct ISA Issue 9 with Santander. It's instant access and just says the rate will drop after 12 months which is why I am confused.

Thanks

Correct me if I'm wrong....
So it's not a fixed account, just a bonus that is being applied until 16th April. You can withdrawals/deposits anytime.

What you could do is perhaps upgrade this isa by phoning Santander, their rate is 2% for 12 months and you can make withdrawals/deposits. (or 3% if you have a 123 current account or cc)
You can do that on the 16th/17th.

In the meantime you could look for a new ISA with a higher rate and then transfer your santander isa into the new isa .

That way while you wait for the new isa to be opened, you will be earning as much interest as possible on santander Just a suggestion

innovate

OK, that's an instant access one then. Even if you ticked "Serve the full notice period before the transaction can be processed", the ISA transfer would happen immediately since there is no notice period.

Since your rate drops on the 16th, you need to get that transfer done quickly. If you are staying with Santander, it's just a phone call on the day.

But if you get a new provider, you have to get your transfer form to them pronto, for immediate transfer. If they did manage to transfer it before the 16th (literally impossible now), all that would happen is that you get 1 day less interest from Santander. Even on a biggish ISA, that's not a lot.

EDIT: Good suggestion by RoxRoxBling. Saves you any panicking.

wildest_jjk

So you guys are saying to ring up Santander on the 16th and upgrade to 2%? Then open the Cheshire BS ISA and move it all into there?