Transferring to another ISA. No longer possible?

rb10

fdlchris wrote: »

the whole interest rate farce begins again in April when banks and building societies endeavor to allure you with their "long lasting" higher interest rate, only to watch it sharply plummet come May or June.

To be fair to the banks, this isn't true.

In 99% of cases, where higher interest rates are offered in April/May, they will last for at least a year before falling. For new customers, rates may be lower in June/July than they were in April/May.

However, I expect 2014 will be like 2013, in that rates do not rise substantially in April.

fdlchris

In any case, I need to keep the money all together in one ISA for now, hence the transfer. It needs to be in an account that has an instant or small notice withdrawal period (40 days or less) so I can transfer all of the savings to an overseas account when I move abroad in March/April, where they have much higher interest rates. It doesn't pay to save anymore in the UK.

Speedster2

fdlchris wrote: »

I have 2 ISAs, one with Yorkshire Bank and another with Nationwide.

The first is a 40-day notice ISA that gives a good interest rate because I need to give the said days of notice before withdrawing.

The second is an e-ISA (instant access) with Nationwide, not currently paying a good interest rate.

I would like to transfer the entire sum from the latter to the former but when I spoke to Yorkshire Bank, they said they can no longer do this. They no longer provide the option of transferring the money in from another ISA. Obviously so, with such a good interest rate.

What other way can I move the money from the Nationwide ISA to the Yorkshire Bank one?

So far, this tax year, I haven't used any of my deposit allowance into any of these ISAs and the sum in the Nationwide ISA is small enough for me to withdraw the whole sum and put it into the Yorkshire Bank ISA as this year's usage of my tax-free deposit allowance. However, if I was to withdraw the money from the Nationwide account, am I likely to incur any tax penalty on having the money on my person as I would a normal withdrawal from any other account?

fdlChris - I am not an expert but I understand that if you withdraw your money then you lose that amount of ISA allowance FOREVER!. You can only re-deposit whatever remains of the 2013-2014 balance. Read the T&C carefully before withdrawing any money unless you actually intend to use it. Once it's out of the ISA you'll lose the tax-free status of whatever you withdraw. Always ask the bank/institute providing the receiving ISA to transfer it for you.
In your post you say you want to move your money to the latter, which in your post is the Nationwide e-ISA. I presume this is a mistake and you mean move to the YB 40-day notice. If the Yorkshire won't accept transfers in then open an account with the best interest you can find that does allow transfers in. You're sorted!

badger09

Speedster2 wrote: »

fdlChris - I am not an expert but I understand that if you withdraw your money then you lose that amount of ISA allowance FOREVER!. You can only re-deposit whatever remains of the 2013-2014 balance. Read the T&C carefully before withdrawing any money unless you actually intend to use it. Once it's out of the ISA you'll lose the tax-free status of whatever you withdraw. Always ask the bank/institute providing the receiving ISA to transfer it for you.
In your post you say you want to move your money to the latter, which in your post is the Nationwide e-ISA. I presume this is a mistake and you mean move to the YB 40-day notice. If the Yorkshire won't accept transfers in then open an account with the best interest you can find that does allow transfers in. You're sorted!

Speedster2 you have misunderstood OP's post.

He wants to transfer from Nationwide e-ISA (latter) to the YB 40 day notice (1st or former).

YB do not allow transfers in.

He hasn't paid anything into either ISA in 2013/14 and the amount in Nationwide is less than the annual allowance so he has absolutely nothing to lose by doing what he suggests unless he has funds elsewhere to fill YB ISA, in which case he should look for somewhere better to xfer Nationwide ISA to.

fdlchris

Speedster2 wrote: »

In your post you say you want to move your money to the latter, which in your post is the Nationwide e-ISA. I presume this is a mistake and you mean move to the YB 40-day notice.

Hello Speedster2. Thanks for your response. Actually, I did specify moving it to the former in my OP. Sorry if this caused confusion:

fdlchris wrote: »

I would like to transfer the entire sum from the latter to the former

Hey badger09,

Yes, that's exactly my situation. I wanted to also say that I don't have sufficient funds anywhere else to make use of 2013/2014's annual allowance. I was travelling last year so I didn't make any capital and now I'm back in the UK to start shuffling the ISAs around (because I read on here you can't open or add to accounts whilst overseas).

So I wouldn't lose out by withdrawing the money from the Nationwide ISA and adding it to the YB ISA. If I had other funds elsewhere, I would use those as my 2013/2014 annual allowance and just leave the Nationwide as-is. That is not the case.