Tell us you cash ISA questions

eskbanker

Transfers don't affect your current year's allowance, i.e. opening a new ISA that's funded solely from a transfer of previous years' contributions doesn't prevent you from opening another new one for this year's allowance.

There's nothing to stop you from opening one with another provider given that you've reached the FSCS limit with Virgin, but most on here (including yours truly at post #233 above) would recommend that you don't open another cash ISA when there are much better rates on offer via other products, see http://www.moneysavingexpert.com/savings/which-saving-account for further details, or consider S&S ISAs if you have so much in cash form already....

Douglasishalffull

Excellent. Thank you eskbanker.
Just to confirm that if I open another account this is THE one I'm allowed each year and the transfer of an existing ISA fund into a new ISA account doesn't count as THE new account?
Guess that is what you said, but just to make sure I understand correctly.
Sounds reasonable.
Are the rules set out in an HMRC release/leaflet?

masonic

Douglasishalffull wrote: »

Excellent. Thank you eskbanker.
Just to confirm that if I open another account this is THE one I'm allowed each year and the transfer of an existing ISA fund into a new ISA account doesn't count as THE new account?

Not if you don't also add additional funds to the existing ISA or new ISA account.

Are the rules set out in an HMRC release/leaflet?

You can find them at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/512781/ISA_guidance_notes_April_2016.pdf
Happy reading!

JarkayColt

For the last couple of years, I have been taking advantage of a "split ISA" with Nationwide. I therefore have both a Help to Buy and Easy Access ISA and pay into both regularly. This arrangement was fine when the interest on the Easy Access account was 1.3%, but now it's a fairly low 1% and there are better offerings for both of these ISAs. So ideally I would be looking to transfer them to get a better rate.

Correct me if I'm wrong, but as I understand it, it is possible to make as many ISA transfers as desired as long as only one is "active", so both accounts could be transferred to different providers. However, I'm not sure which of those accounts would then be considered active seeings as I've paid into both this year. I would most likely want to continue paying into the Help to Buy account for the foreseeable future, so I imagine it would simply be a case of not adding any extra cash to the Easy Access ISA once transferred. I also haven't opened any new accounts this tax year, so if I were to do that (e.g. sticking my cash ISA into a fixed rate account instead) it'd make the situation even more confusing. Unless that would also count as a transfer (I'm not terribly clued up.)

I know this could be solved extremely easily by dumping my Easy Access ISA into, say, the Santander 123 account, but I only have 1 active direct debit and therefore don't qualify. I would also just barely scrape the minimum pay-in, so I don't see it as an option currently.

Basically I just want both accounts separated so I can ditch and switch (if that's possible), paying primarily into the HTB ISA. If someone can help make sense of this conundrum, it'd be much appreciated.

masonic

If you have a split ISA containing money from this tax year distributed between accounts, you cannot transfer just one account. Your only option if you want to keep the Nationwide HTB ISA is to withdraw the money you paid into the Easy Access ISA this tax year and put it in a non-cash ISA account. Any money you paid into the Easy Access ISA before the start of this tax year can be transferred to a different cash ISA.

BarGin

I have had a cash ISA with Metro Bank for a few years. I withdrew £15,000 from it in May of this year. I am told it is a flexible ISA. Will I be able to return the £15,000 and still open another ISA elsewhere in this financial year?

EveTilly79

MSE, I need help. I accidentally paid money into my daughter's junior ISA that was meant for something else and now i'm being sent on a wild goose chase to get the money back. The ISA is with Nationwide and they said I had to get permission from HMRC! HMRC knew nothing about it. Please help!

Thanks

jimjames

EveTilly79 wrote: »

MSE, I need help. I accidentally paid money into my daughter's junior ISA that was meant for something else and now i'm being sent on a wild goose chase to get the money back. The ISA is with Nationwide and they said I had to get permission from HMRC! HMRC knew nothing about it. Please help!

Thanks

Probably best to start your own thread but I believe you cannot withdraw money from a JISA.

Lesley101

Can you pls help? And being cheeky, there are two questions! I don't have the full £15,240 to invest in an ISA this month (July 2016). Q1. Can I open a flexible or fixed ISA at 'today's rate', and later in the year add extra cash to it? Q2. Anticipating an imminent bank of england rate drop to 0%, flexible ISA rates therefore dropping, can I then transfer a flexible or fixed ISA to a new better rate fixed rate ISA? Thank you in advance.

colsten

Q1: you can add to instant access ISAs when it suits you. Fixed term ISAs generally have a very limited, small, deposit period. You need to read the T&Cs.

Q2: you can transfer whenever you like if you indeed find any better deal. There might be penalties when transferring fixed term ISAs. Again, read the T&Cs.