Moving ISA money

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
2 replies 638 views
the_goonerthe_gooner Forumite
9 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Hi

I need to move an amount of money from one ISA to another. The amount is under £3000.
I will not be investing any more into an ISA this year, and want to put in in an ISA fund that does NOT accept transfers.

Is there are disadvantage of withdrawing the ISA funds from the first account, and plopping it straight into the new account (remember that I won't be investing any more in the ISA this year, so am not worrid about the £3000 limit).

Thanks

Replies

  • Mr_MumbleMr_Mumble Forumite
    1.8K Posts
    Hi gooner and welcome to the MSE boards.

    Have you put money into your current ISA this tax year? It would be against ISA rules to put money into a new account, if, you've deposited money into your existing ISA since April 6th. The only option would be to transfer.

    If you haven't put money into your current ISA this tax year then I don't see any disadvantage, unless you got an unexpected juicy windfall!
    "The state is the great fiction by which everybody seeks to live at the expense of everybody else." -- Frederic Bastiat, 1848.
  • LittleVoiceLittleVoice Forumite
    9K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
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    Ensure you give appropriate notice to the current ISA provider if necessary - not all accounts allow penalty free withdrawals.

    Otherwise, assuming the new ISA is on better terms than the current one and that the current one was not opened with this year's money, your withdrawal and moving to a new account is a good one. And you will have the bonus of compounded interest up to the date of withdrawal.
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