Does 'upgrading' an ISA count as a new ISA

smartsaver

I thought I understood ISA's but have confused myself.
I am thinking of transferring my Santander ISA that matures tomorrow to the Santander 123 ISA paying 2.3%.








Does this count as a new ISA or can I open another with this years ISA allowance. TIA

Ed-1

smartsaver wrote: »

I thought I understood ISA's but have confused myself.
I am thinking of transferring my Santander ISA that matures tomorrow to the Santander 123 ISA paying 2.3%.

Does this count as a new ISA or can I open another with this years ISA allowance. TIA

You can open as many ISAs as you want. You can only pay new money in to one ISA in any one tax year.

Archi_Bald

As long as you follow the formal ISA transfer process, a transfer doesn't affect your ability to use your allowance for the current year in full.

smartsaver

Thanks guy so just to be clear I can transfer my current ISA to a new ISA. Then with my new ISA allowance open another ISA with any provider? Sorry to be thick but really want to get this straight in my head.

Archi_Bald

Yes you can.

OnlyMe_08

I already have the 2 yr 123 ISA with this years allowance of £5940 and intend to top up come July.

So would I be able to just open another 123 2 yr ISA (using the upgrade option online) when my existing Major ISA matures tomorrow?

Archi_Bald

You can transfer your matured 123 ISA to another ISA that allows transfers in. Whether your new 123 ISA does still allow transfers in only Santander can tell you. I doubt you can transfer into a new 123 ISA - but may be you can. Santander can tell you.

mary

I waited until today to make sure the interest had been added with the Santander 2 year Fix which matured today. I thought that if I opened it "within the 28 days" as they said it would be instant, I would therefore be penalised with loss of interest as I hadn't waited the full term. However, now that I have tried today to Upgrade it says my Current Isa is not eligible for an upgrade. I notice that it is now called Cash Isa, so is it because it's a change of name that it is no longer eligible. Anyone else had the same experience?

innovate

Call them and ask them to transfer it?

freddysmith

mary wrote: »

I waited until today to make sure the interest had been added with the Santander 2 year Fix which matured today. I thought that if I opened it "within the 28 days" as they said it would be instant, I would therefore be penalised with loss of interest as I hadn't waited the full term. However, now that I have tried today to Upgrade it says my Current Isa is not eligible for an upgrade. I notice that it is now called Cash Isa, so is it because it's a change of name that it is no longer eligible. Anyone else had the same experience?

I have applied online this morning to upgrade my matured Santander Major FRISA (now called Cash ISA) using the upgrade option "123 customers holding an existing Santander cash ISA" for a 2yr FRISA @ 2.3%
Filled out a few details on the form and is now being processed.
It seems to have worked for me.
Update.....I have now had email confirmation of the transfer and my online details have changed from Cash ISA to Fixed Rate ISA. All completed in a day.


As for this years allowance I'm just sitting on the fence keeping watch.

mary

innovate wrote: »

Call them and ask them to transfer it?

I rang and was told that HMRC put a block on it. It didn't seem clear to me as the guy was suggesting that I couldn't add any more to it in that year, when it was a 2 year ISA anyway!!!

Anyway, he read out the rules about ISAs, the usual spiel and eventually unblocked it and now the new one is up and running.
Thanks Innovate