Managing one's ISAs

willmow

Can funds be added to a 'full' ISA, or is each 'full' ISA a self-contained entity that you transfer from savings provider to savings provider down the years (to take advantage of the best rates), separate from all the other ISAs one has? In other words, say after 20 years, does one end up with 20 ISAs all needing separate management? Recipe for administrative nightmare?

Cornucopia

It depends on the terms of each ISA. If an ISA allows transfers in, then it will treat transferred funds as additional to the annual allowance. Therefore it's possible to minimise the number of actual ISA accounts you have whilst making full use of your allowances.

saintalan

willmow wrote: »

Can funds be added to a 'full' ISA, or is each 'full' ISA a self-contained entity that you transfer from savings provider to savings provider down the years (to take advantage of the best rates), separate from all the other ISAs one has? In other words, say after 20 years, does one end up with 20 ISAs all needing separate management? Recipe for administrative nightmare?

Just to clarify when you say "full" do you mean the maximum paid in to each Cash ISA OR using your full allowance into cash and/or S&S ISAs.

Regards

Alan

willmow

Aha, so I can end up with a 'super-ISA' containing the funds from number of separate ISAs, all untaxed? What happens if that provider then decides to drop the rate - I then need to find homes for those funds?

willmow

saintalan wrote: »

Just to clarify when you say "full" do you mean the maximum paid in to each Cash ISA OR using your full allowance into cash and/or S&S ISAs.

Hi Alan, yes, I mean maxed out to the cash limit. I'm restricting this discussion to cash ISAs.

saintalan

willmow wrote: »

Aha, so I can end up with a 'super-ISA' containing the funds from number of separate ISAs, all untaxed? What happens if that provider then decides to drop the rate - I then need to find homes for those funds?

Yep, you need to be on your toes. Keep a diary of when rates end as soon as you take one out, then you can alert yourself to what's on offer at the time. You need to keep check also of if/when you can transfer without penalty.

Dont forget the best rates dont always allow transfers in, so you may be better of with two, one current, one transfers.

Just stay on MSE you'll be fine!

Cheers

Alan

innovate

willmow wrote: »

Aha, so I can end up with a 'super-ISA' containing the funds from number of separate ISAs, all untaxed? What happens if that provider then decides to drop the rate - I then need to find homes for those funds?

You just keep moving your money to what you consider the best place.

willmow

saintalan wrote: »

You need to keep check also of if/when you can transfer without penalty.

When you say "penalty", who does the penalising - the 'old' or the 'new' provider?

Lansdowne

If you have a fixed term ISA, you will probably not be allowed to move it until the fixed term is up. Or you can move it but be charged a penalty. Some other ISAs also require e.g. 60 days notice to close/move them, or pay a "penalty" to move without notice.

In answer to your first question, an ISA is only "full" until April 6th each year, then you can contribute that year's allowance to it if you wish. If you find another ISA provider that (1) offers a better rate and (2) allows transfers-in, you could in principle transfer all your "previously-full" ISAs into it, making one big "full-to-bursting" ISA..

willmow

Lansdowne wrote: »

...an ISA is only "full" until April 6th each year, then you can contribute that year's allowance to it if you wish.

:question: Not sure what you mean. If I maxed out last (tax) year's ISA, am I now able (in the new tax year) to add to that particular ISA if the provider allows transfers in - and thereby take advantage of the better rate compared to those currently being offered?

latecomer

If you are opening a new ISA with a new provider then you need to make sure it accepts transfers in.

If you are just wanting to pay in this years allowance then you can open a new ISA to do that. Normally I do both although the last 2 years Santander have had the best instant access rate just before and after the cut off and also allowed transfers in so my I have my entire ISA balance in a single account - which contains this years money and all the "old ISA savings " all in the same place.


Most, if not all, fixed rates allow payments/transfers during the initial period only. Easy access generally do allow additional payments in my experience