Confusion about when to open an ISA

michelle8790

I'm looking at the 'best cash ISA' page and it says "The golden rule is you can only open a cash ISA with one provider in a tax year". So does that mean when the tax year starts in April, if I haven't moved my rubbish ISA by then I can't move into a new ISA at another time of the year?

Essentially, I'm wanting to know if I can move into another ISA now. I'm currently with Halifax and I think my ISA was called easysaver and it hasn't been moved in years and I'm getting a rubbish interest rate. I was wanting to move into nationwide in which I would get 2% interest, is it possible to move now, or do I have to wait until April next year to move it?

Also it says for nationwide it does not allow previous ISA transfers. So if I am allowed to open an ISA at nationwide, how do I get my money into it?

Sorry for the vast amount of questions. I'm at university and trying to learn about making the most of money, I hope you don't mind

alanq

You can only place money in a cash ISA with one provider in a year. You can transfer previous years' subscriptions without any issues PROVIDED THAT THE NEW ISA PROVIDER IS WILLING TO ACCEPT TRANSFERS IN.

"Also it says for nationwide it does not allow previous ISA transfers. So if I am allowed to open an ISA at nationwide, how do I get my money into it?"

If you are determined to make that move the only way would be to take the cash out of the Halifax ISA and pay it into the Nationwide as cash rather than transfer the ISA. This assumes that you have not already contributed to a Cash ISA this tax year and the amount moved would count against this year's ISA allowance.

jimjames

You can move an old ISA at any time subject to the T&Cs of the account.

You can only add new money to one account per year. The new account has no bearing on anything to do with the old account.

If an account doesn't allow transfers it means you can't transfer your old account but you can open an account for your current year's allowance

michelle8790

jimjames wrote: »

You can move an old ISA at any time subject to the T&Cs of the account.

You can only add new money to one account per year. The new account has no bearing on anything to do with the old account.

If an account doesn't allow transfers it means you can't transfer your old account but you can open an account for your current year's allowance

Thank you, this makes sense to me In terms of moving money across could I open a current account with nationwide, move the money from my ISA to there, and once it's moved into that current account, open an ISA with nationwide and move that money into there?

jem16

michelle8790 wrote: »

Thank you, this makes sense to me In terms of moving money across could I open a current account with nationwide, move the money from my ISA to there, and once it's moved into that current account, open an ISA with nationwide and move that money into there?

You could do that but it's rather a waste of your ISA allowance. Why not find an ISA that will allow a transfer?

You can also redesignate your Halifax ISA to one at Halifax with a better rate although only 1.35% I believe.

That way you would still have your full ISA allowance for this year.

badger09

michele

Trust me, I'm not just asking out of idle curiosity

How much is in your Halifax ISA?
Can you afford to add any new money to it between now and 5 April 2014?
Are you liable to pay tax this year?
Will you be liable to pay tax next year?

Simply moving your ISA may not be the best idea but a bit more information would help

jimjames

michelle8790 wrote: »

Thank you, this makes sense to me In terms of moving money across could I open a current account with nationwide, move the money from my ISA to there, and once it's moved into that current account, open an ISA with nationwide and move that money into there?

If you have under £5760 in your ISA and have no new money to add to it then this is certainly possible. Although you will be losing your 2013/14 ISA allowance if you aren't going to be using it anyway then there is no real loss.

If you had say £2000 is your old ISA and planned to add another £3000 this year then it is also possible to close your ISA and put the money in a new one too. It is normally advised to not close an ISA but transfer it instead as you lose the old allowance by doing this. If you won't use your current year allowance then it makes very little difference.