Help! ISA transfer puzzle...

WatlingA5

My wife has a NatWest ISA whose interest rate will drop from 2.0pc to 1.16 in January. She has a Coventry non-ISA account so asked about transferring the NatWest ISA to the new 2.5pc Coventry Reward ISA. Callcentre person said she would have to open a new ISA account AND make a deposit to start it. We thought the transfer, since it includes this year's allowance, would automatically cover the start-up deposit.

Problem is she has already put the maximum for this year in the NatWest account, so she has no spare allowance (and would she be allowed to do that anyway?). So it looks as though she's stuck with taking the money to the next best for her, Virgin's 1.75pc.

I can't help thinking either we or the Coventry adviser have got it wrong somewhere along the line.

Can someone please shed light on it for us?

Lokolo

The Coventry adviser is wrong, unless the Coventry Reward ISA doesn't allow transfers. Which is not the case.

You can open up the ISA with nil balance then fill in an ISA transfer form. However, Coventry don't seem to make it easy, I can't find their transfer form online anywhere.

grizzly1911

WatlingA5 wrote: »

My wife has a NatWest ISA whose interest rate will drop from 2.0pc to 1.16 in January. She has a Coventry non-ISA account so asked about transferring the NatWest ISA to the new 2.5pc Coventry Reward ISA. Callcentre person said she would have to open a new ISA account AND deposit £5,760 to start it. We thought the transfer, since it includes this year's allowance, would automatically cover the start-up deposit.

Problem is she has already put the maximum for this year in the NatWest account, so she has no spare allowance (and would she be allowed to do that anyway?). So it looks as though she's stuck with taking the money to the next best for her, Virgin's 1.75pc.

I can't help thinking either we or the Coventry adviser have got it wrong somewhere along the line.

Can someone please shed light on it for us?

"ISA Reward is only available to existing Coventry customers who held a cash ISA with us at the end of 4 February 2013. "

http://www.coventrybuildingsociety.co.uk/savings-and-investments/cash-isas/isareward/isareward.aspx

WatlingA5

grizzly1911 wrote: »

"ISA Reward is only available to existing Coventry customers who held a cash ISA with us at the end of 4 February 2013. "

I knew one of us had got it wrong :embarasse

Misread that line, so apologies to the Coventry chappie.

Thanks both