Current ISA with 11.5k in it what to do?

Uvbntangoed100

My current ISA has paid 0.25% over the last year.

Should i just take the cash out and reinvest it in other accounts.

I read somewhere that withdrawing the cash is a no no due to losing tax free benefits.

Its not been a good ISA for a year though so does this still apply.

Or i could take some of the balance out and transfer the rest into a new ISA without any negative affects??

Cheers

FlashBarry

You need to transfer it to a new ISA account paying more interest.

Search for cash ISAs that accept transfers in.

Don't withdraw it then try to pay it in.

Wilkins

You can transfer the whole of it into a new ISA as long as you have started no new ISA this tax year. If you have, wait until April 6th to open a new one at the best interest rate you can find and then do the transfer using the new provider's procedure.


Do not take the cash out or you will lose the tax free status forever.

Vortigern

https://forums.moneysavingexpert.com/discussion/401374

Follow the link above and look for an ISA that accepts transfers in. It looks like Virgin is your best option. If you decide to go with Virgin, you must ask Virgin to arrange the transfer from your current ISA.

Uvbntangoed100

So i cant even withdraw some of the money without losing tax bonus?

As i would like to take some of it out and put it else where.

What if i withdrew some and transferred the rest would that be ok?

Cheers

Vortigern

Uvbntangoed100 wrote: »

So i cant even withdraw some of the money without losing tax bonus?

As i would like to take some of it out and put it else where.

What if i withdrew some and transferred the rest would that be ok?

Cheers

Yes. You can withdraw some and transfer the rest.

innovate

All your deposits made in 2013/2014 (tax year) must stay together when you request a transfer.

But you could request transfers to more than 1 ISA - for example 1 for the 2013/2014 deposits, and another one for the remainder. As long as you ask the new provider(s) to make the transfer, the tax-free status of your entire ISA balance gets retained. Not sure why you would want to transfer into more than one ISA, though, unless one of them is an S&S one.

You can, of course, withdraw as much as you like from your ISA but the withdrawn money immediately loses its tax-free status.

fozziebeartoo

Is the bit I highlighted correct?

I have filled my 13/14 ISA allowance but I CAN open a new ISA and transfer the lot.......cant I???

Just cant put any new money in from 13/14 even if I hadn't maxed it???

I have another thread running about transferring my ISA and this has me confused....:o

Wilkins wrote: »

You can transfer the whole of it into a new ISA as long as you have started no new ISA this tax year. If you have, wait until April 6th to open a new one at the best interest rate you can find and then do the transfer using the new provider's procedure.


Do not take the cash out or you will lose the tax free status forever.

Vortigern

fozziebeartoo wrote: »

Is the bit I highlighted correct?

No.

I have filled my 13/14 ISA allowance but I CAN open a new ISA and transfer the lot.......cant I???

Yes, you can.

Just cant put any new money in from 13/14 even if I hadn't maxed it???

If you hadn't maxed it before the transfer, you could top it up after the transfer, except where your new ISA allows only one deposit.

jimjames

Uvbntangoed100 wrote: »

So i cant even withdraw some of the money without losing tax bonus?

As i would like to take some of it out and put it else where.

What if i withdrew some and transferred the rest would that be ok?

Cheers

Where are you planning on putting it?

You can get 5% with NW Flexdirect outside an ISA but you then lose the tax benefits.

Having read you comment I'm not sure if you mean you lose tax benefit of whole ISA by withdrawing some money. That certainly is't the case - you only lose the tax benefit on the bit you withdraw.

Wilkins

fozziebeartoo wrote: »

I have filled my 13/14 ISA allowance but I CAN open a new ISA and transfer the lot.......cant I???

Sorry, yes you can.