ISA Transfer question

RoxRoxBling

wildest_jjk wrote: »

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?

Yes provided Cheshire BS allow transfers in.
The only reason I'd say to phone santander to upgrade is just in case there is a delay or something unexpected happens with the application.
http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1237851469036&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateW2 If you scroll down under the box it'll give you the number to call.

MSE advice. search in google "say no to 0870" and you can find 01 or 0800 number alternatives to 0845

wildest_jjk

It's still very confusing. So if I have an instant access ISA open which doesn't mature till a certain date.

When do I go about setting up the transfer process if I am moving providers? Bearing in mind that the old ISA is at a higher rate until it matures?

Thanks

innovate

Your ISA is an instant access one. It does not mature.

"Maturing" of a savings account means you cannot reasonably get at your money before a given date (the maturity date). Early withdrawals/closure/transfers etc are sometimes completely prohibited, and at other times come with hefty penalties, such as 180 days loss of interest.

Your ISA has none of these characteristics. It does not mature. You can transfer or withdraw any time you like. You will get the applicable interest right up to the date of transfer/withdrawal etc.

The fact that your interest rates drops to 0.5% on the 16th (day after tomorrow) does not make your ISA one of the "maturing" kind.

ISA transfers to other providers take anything from 5 to 15 days, so you are already quite late asking for a transfer if you are going to a new provider.

Whilst you sort out your ISA, and whilst your new chosen provider makes the transfer, you can do as RRB suggested - - i.e. ring Santander on Tuesday and ask them to internally transfer your ISA to their instant access 2% one. They can usually do this instantly. This means you aren't stuck on 0.5% whilst your transfer to your new provider is being processed.

typistretired

Your ISA's interest reduces tomorrow so you could ring Santander on their freephone number 0800 681 6691 tell them as your isa interest goes down tomorrow (so it actually finishes at midnight today) you want it moved from tomorrow to their isa paying 2%. Hopefully they will just open the new isa for you and you can manually move the money tomorrow. This is just for you to earn the extra interest while you find a better isa allowing transfers into it. If you find a better isa which allows transfers into it you complete a transfer form from them not Santander to move your Santander ISA to them.

innovate

typistretired wrote: »

you can manually move the money tomorrow

This sounds highly inadvisable because it would with almost 100% certainty count as a new deposit if you did that. Meaning you would use up some or all of your current FY's ISA allowance. And if you have more than £5,760 in the old ISA, you probably couldn't move all of it.

The purpose of calling Santander is to ask them to make the transfer, not to open a new ISA for you. You can do the latter online without their help.

penny_pincha

I was considering opening a Halifax ISA and funding from another ISA from another provider to the tune of £100 using previous tax year's money. However, I discovered this statement "It is important to note that under HM Revenue & Customs ISA Regulations, only whole transfers of
current tax year subscriptions and interest can be accepted."

What !!! Does this mean transfers like I want to do aren't allowed or does it mean I have to transfer all of it. Can't get a handle on this at all. Please help.

Lansdowne

You said it was "previous tax year's money" and the rule you quoted only applies to "current tax year" money, so there's no problem.

penny_pincha

Sorry being really dense here. Does it not mean that unless I transfer all of my ISA it won't be accepted / allowed? Or is that only referring to new (2013/14) money, which mine is not?

Thanks in advance.

typistretired

penny_pincha wrote: »

Sorry being really dense here. Does it not mean that unless I transfer all of my ISA it won't be accepted / allowed? Or is that only referring to new (2013/14) money, which mine is not?

Thanks in advance.[/QUOTE

Only refers to new (2013-2014) isa which you must transfer in whole. See the following from HM Revenue & Customs site:

"Transferring an ISA
Investors can transfer their ISAs from one manager to another whenever they want. They may transfer

• their current year ISA subscriptions (and any related income) and/or
• all or part of their previous years ISA subscriptions (and any related income).

If the ISA contains current year subscriptions only the entire account must be transferred."

typistretired

innovate wrote: »

This sounds highly inadvisable because it would with almost 100% certainty count as a new deposit if you did that. Meaning you would use up some or all of your current FY's ISA allowance. And if you have more than £5,760 in the old ISA, you probably couldn't move all of it.

The purpose of calling Santander is to ask them to make the transfer, not to open a new ISA for you. You can do the latter online without their help.

I stand corrected

Hopefully if they have rang Santander they will have sorted it all out for them.