Tell us you cash ISA questions

eskbanker

masonic said:

Miranda25 said:

Hi everyone,
I am moving money from Nationwide to Ford Money. Nationwide rate 0.25%, Ford Money rate 1.25%. Can anybody tell me please at what point I will start to receive Ford's interest rate when money are in transit? When Ford Money requested a transfer from Nationwide or from a moment when money arrive into Ford's account? Let's say it would take 1 month to transfer money. What rate will I get that month? 
Thanks.

Some providers will backdate interest to cover some or all of the transfer period, but it isn't a requirement. I don't know if Ford Money do. There might be a period where you earn no interest, although Nationwide should continue to pay interest up to the point they close the account and send the money across. Although the transfer might not be completed as quickly in the current circumstances, it will probably not take as long as a month.

The suggested best practice for cash ISA transfers envisages no gap, but the best practices documented "are recommendations only and not prescriptive":

The new ISA provider should apply the transferred funds to the customer’s account.

Interest on the transferred funds should be backdated either to the date on the cheque, inclusive, or to the date which represents ‘day 16’ of the transfer process, inclusive – whichever is earlier.

For electronic payments, interest on the transferred funds should be backdated either to the date the payment was initiated, inclusive, or to the date which represents ‘day 16’ of the transfer process, inclusive – whichever is earlier. 

Miranda25

Thank you, now I understand why some people in other threads are not happy about slow response of Nationwide.

db3745

5 year Cash ISA fixes  for my spouse and I with Coventry mature 31st May, and like many I'm tempted to ditch the ISA wrapper, certainly in my case as I'll need rates to treble before it became an issue, and there's now a significant differential in favour of a simple fixed rate. I'm sure Habib Zurich was 1.55% yesterday but today 1.45% in this quick-changing situation. That's as against the 1.00% 1 year fix with Saffron, who we already have small easy access deposits with - I know that's not tops, but I'm happy with them. I'd certainly move my ISA money, if not both of ours, but when I look at comparisons of the top fixed rate bonds on another site Which I've been on, they all say under "Cash ISA transfers" - No.

I know in the past, ISA to ISA there hasn't been a problem in pre-booking if you like; open the new account today with funds transferred automatically on maturity of old ISA. I can't think why they wouldn't allow the same if I'm simply dispensing with the ISA wrapper? Is it really because they're unwilling to allow rates that will be out of date when the money arrives? Or are they just spelling it out to applicants that this isn't an ISA they're investing in?

eskbanker

db3745 said:

I'd certainly move my ISA money, if not both of ours, but when I look at comparisons of the top fixed rate bonds on another site Which I've been on, they all say under "Cash ISA transfers" - No.

I know in the past, ISA to ISA there hasn't been a problem in pre-booking if you like; open the new account today with funds transferred automatically on maturity of old ISA. I can't think why they wouldn't allow the same if I'm simply dispensing with the ISA wrapper? Is it really because they're unwilling to allow rates that will be out of date when the money arrives? Or are they just spelling it out to applicants that this isn't an ISA they're investing in?

There is a recognised ISA transfer process that all ISA providers must sign up to (although they may elect not to receive inward ones), but there is no such facility for non-ISA savings account providers, who don't have any legitimate means of going and grabbing funds held by another provider.  So it's not "simply dispensing with the ISA wrapper", there just isn't a defined inter-bank process that covers transferring money from an ISA with provider A to a non-ISA with provider B in one jump....

db3745

I see now. Yes, as I've trundled along with the easy-transfer system that I guess was part of the state's encouragement to get more people saving, I've been spoiled until now. There's no point in getting too busy checking rates until nearer the date. If I go down the non-ISA route, I'll have to have the cash paid into my bank and move it on from there.

thor

I'm going to open two cash isas with two different providers and fund each one solely by transferring from two other cash isas from previous years. Because no new money is involved this should be ok?

masonic

thor said:

I'm going to open two cash isas with two different providers and fund each one solely by transferring from two other cash isas from previous years. Because no new money is involved this should be ok?

Yes that would be ok

Frogletina

thor said:

I'm going to open two cash isas with two different providers and fund each one solely by transferring from two other cash isas from previous years. Because no new money is involved this should be ok?

You can open as many as you want with previous year's money.

I transferred into two fixed ISAs from my flexible one this year, leaving just a small amount in. I've not put any money into a 20/21 ISA yet.

Crasher

I just want to double check before I do something dumb: it's possible to open both a S&S ISA and a S&S LISA, right?
I already have a S&S ISA that I'm dripping money into, but am thinking now is a sensible time to get a S&S LISA as well.  I have a cash LISA from past years that I will shortly be using to buy a house, but I have not paid into it in the 2020/2021 tax year.  This new S&S LISA would be set aside for retirement.  

eskbanker

Crasher said:

I just want to double check before I do something dumb: it's possible to open both a S&S ISA and a S&S LISA, right?
I already have a S&S ISA that I'm dripping money into, but am thinking now is a sensible time to get a S&S LISA as well.  I have a cash LISA from past years that I will shortly be using to buy a house, but I have not paid into it in the 2020/2021 tax year.  This new S&S LISA would be set aside for retirement.  

Yes, you can pay into a S&S ISA and a S&S LISA concurrently, as long as you don't exceed £20K in total across all ISAs this tax year.