ISA Transfer

BGarces

Dear community,

I have been doing some research but I was wondering if you could help me with a doubt I have. Let me explain my situation.

I have 2 different instant access Nationwide ISAs (one for 11/12 and one for 12/13) that will lose the bonus AER towards the end of this year (September and October I think).

My idea was to open a new ISA this financial year that not only would give me a decent interest but would allow me to transfer my previous ISAs as well. I have found that the Nationwide Web ISA Issue 3 allows me to do so. On the other hand, the interest they give me is 2.25% whilst my current ISA is giving me 4.25% (only until September).

What I would like to do is:
- To open that Web ISA by transferring £1000 from an old ISA (just in case that they remove it).
- To keep putting money into the 4.25% ISA until September.
- To do a final transfer on September, where I will transfer the whole amount of my old ISAs (which by then will lose the bonus AER and will become pretty poor investments) to the new one.

I know that only one active ISA account is allowed per financial year. But I have read that an account is only active if you deposit money, not if you transfer money from other ISAs. Technically speaking, I won't deposit any money to my new ISA, I will only transfer money to it, so it should be possible for me to keep the 4.25% ISA as my active one this year but still be allowed to open a new one and transfer money to it. Is that possible or I am missing something?

Another question that I have, is if it is possible to transfer money between ISAs whenever I want or I must do it when I open the account?

Thank you in advance for your help.

Kind regards
Bernardo

pplchamp

Your idea seems plausible and should be fine.

As for your other question, you will need to read the T&C. Usually there is a time frame on when the funds must be transferred otherwise they may close your account.

innovate

BGarces wrote: »

Another question that I have, is if it is possible to transfer money between ISAs whenever I want or I must do it when I open the account?

Nationwide is one of the very few places where you can have even your current year's ISA deposit in several of their ISA offerings.

As to whether you can move your funds yourself in between the ISAs: I think it is physically doable if they show online and are still open for deposits/transfers. However, I think all their literature says you need to ask them to do it for you, so that's what I would do if I were you. That way, if something went wrong, it would be their responsibility.

david78

You can transfer between Nationwide's "eISA", "Online ISA" and "Web ISA" accounts online. You just do the transfer yourself. For other accounts get a "Cash ISA Consolidation Form in your branch, fill it in, and hand it to the branch staff who will process it. You can use the Consolidation form to do transfers and/or merge accounts together.

BGarces

Thanks for the answers.

It really looks like Nationwide makes it really easy for me to move money around my ISAs or use them as it conveys me.

I will review the T&C to see if there is any time deadline, but otherwise I should proceed with "my little plan".

Kind regards
Bernardo