Isa's ....so confused!

Ryles

Ok could somebody please clear this up for me as my head is spinning!

I opened an ISA with Barclays last year. The rate has now dropped so I want to transfer. Now I have also applied to open a new ISA with Coventry building society as I got a good rate and I want to deposit my years ISA allowance into this. I called Barclays and they said they would transfer my current ISA to their new one which would give me a better rate. As I will be using my years allowance with the Coventry I wont be adding any money to the Barclays ISA. This is where I am getting confused . When I called Barclays to do the transfer they said I cannot transfer if I have opened another ISA this year.....which I have with the Coventry! I thought you could open a new ISA and transfer an old one to another provider to get a better rate? Am I wrong in thinking this????

Thanks

katejo

Ryles wrote: »

Ok could somebody please clear this up for me as my head is spinning!

I opened an ISA with Barclays last year. The rate has now dropped so I want to transfer. Now I have also applied to open a new ISA with Coventry building society as I got a good rate and I want to deposit my years ISA allowance into this. I called Barclays and they said they would transfer my current ISA to their new one which would give me a better rate. As I will be using my years allowance with the Coventry I wont be adding any money to the Barclays ISA. This is where I am getting confused . When I called Barclays to do the transfer they said I cannot transfer if I have opened another ISA this year.....which I have with the Coventry! I thought you could open a new ISA and transfer an old one to another provider to get a better rate? Am I wrong in thinking this????

Thanks

As you have applied for an account with the Coventry, you can't also transfer your Barclays account from 2012-2013 to a new Barclays account for 2013-2014. With that you would have 2 active accounts in the current year. You could close your Barclays account and have the money transferred into the Coventry one (if it allows transfers).

AlwaysLearnin

Nope, not wrong, you can. Possibly crossed wires (Barclays thought you'd be opening a current year ISA and transfer in too?), or the advisor is a bit confused

http://www.hmrc.gov.uk/isa/faqs.htm#8

Sensory

Ryles wrote: »

I called Barclays and they said they would transfer my current ISA to their new one which would give me a better rate.

A Barclays ISA transferring into another Barclays ISA? If the account is to remain with the same institution, simply upgrading the ISA would be the expected course of action.

Ryles wrote: »

This is where I am getting confused . When I called Barclays to do the transfer they said I cannot transfer if I have opened another ISA this year.....which I have with the Coventry! I thought you could open a new ISA and transfer an old one to another provider to get a better rate? Am I wrong in thinking this????

Thanks

Transferring is initiated by the receiving institution, so in your case you would request the transfer through Coventry BS.

Even if you have subscribed to a newly opened ISA this year (including depositing new money), you're perfectly entitled to transfer previous subscriptions anywhere, and however often, you wish.

Clearly there was some misunderstanding with your advisor.

innovate

katejo wrote: »

As you have applied for an account with the Coventry, you can't also transfer your Barclays account from 2012-2013 to a new Barclays account for 2013-2014. With that you would have 2 active accounts in the current year. You could close your Barclays account and have the money transferred into the Coventry one (if it allows transfers).

Afraid, that is just all so totally wrong.

You can transfer ISAs from previous years any time you like, into one or many other ISAs. A new ISA for the current financial year has nil relevance to any transfer(s) of previous years' ISA money.

Under no circumstance should an old ISA be closed in order to "transfer" money to a new ISA.