Transferring ISA Again in Same Tax Year?

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
2 replies 963 views
cwcwcwcw Forumite
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edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I moved to NatWest earlier this year to get 2.25%. They are slashing the rate to 1.5% from January. I have only paid into my NatWest ISA this tax year. I have found First Direct will pay 2% and seems my next best option - am I allowed to transfer to them from NatWest during the current tax year? If so, am I allowed to pay anything into the First Direct ISA after the transfer or do I have to wait until the new tax year?

Thanks :beer:


  • Archi_BaldArchi_Bald Forumite
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    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Unless your Natwest ISA has any restrictions, you can ask First Direct to transfer your ISA.

    If you transfer all of the 2013-14 contributions, you will be allowed to make further deposits into the FD ISA, up to the current FY's allowance as soon as the transfer has been completed.
  • Gordon_the_MoronGordon_the_Moron Forumite
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    Part of the Furniture 1,000 Posts Combo Breaker

    The Natwest ISA you are referring to is, I suspect, the E-ISA which if so, has no withdrawal restrictions.

    You can't split up the current year's allowance but you can transfer it whole (as often as you like) when First Direct open the account for you, it will have a balance of £0 until the transfer is complete.

    Whilst the First Direct balance is £0 you can't pay into it yourself or you'd be subscribing to Natwest and FD at the same time. Once the transfer is complete your remaining allowance along with your contributions to the current tax year's allowance will be moved over and the Natwest account closed.

    Whilst the transfer is taking place I wouldn't try and add anything to either. You can't the FD account or you are breaking the rules, in theory you could add to the Natwest account but the transfer is done by sending a cheque between providers, not sure what would happen if you tried to put money in after they'd sent the cheque out but before it had been cashed, could mess things up.

    I know this information is right because I had a Nationwide Flexclusive Issue 1 paying 4.25% until the end of October, I transferred it with all of last year's allowance and half of this year's in to Nottingham Building Society and have since filled the Nottingham account. This account pays 2.1% with 60 days notice for withdrawals but is unfortunately no longer available, it was taken off the day after I applied for it!

    I take it you do realise to get the 2% account from First Direct you need their current account and to have over £40000 in your ISA.
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