Tranferring old ISA and making additional deposit

Gizasmum

Can anyone help clarify things for me please. Apologies for all the questions, but although normally financially astute I am having a complete mental block with this!

I have a 2 year Fixed Rate Cash ISA with Bank of Scotland ISA worth £12k, which allows me to reinvest it from 9/4/15. I am starting to look at what I should do with this money, although I don't want to lock it away for any longer than 2 years. I have not invested (so far) in a cash ISA in 2014/15.

If I open a new 2 year fixed ISA with a new provider, one that accepts transfers in, what is the correct order to do the transfer? Is it (a) open new ISA, pay new money in, transfer in old ISA OR (b) open new ISA, transfer in old ISA, pay new money in OR (c) it doesn't matter whether I pay in or transfer in first?

Also given that my ISA matures on 9/4/15, which is only a few days into the new tax year, do I have to wait until just days before that to start the ball rolling to open a new one or can I open it now in preparation for the transfer? I believe I have to give at least 5 working days notice to Bank of Scotland so need to decide very quickly. My concern is that if I were to open a new ISA, say tomorrow, and tell the new provider that I want to transfer in, my Bank of Scotland ISA funds aren't physically going to be available to move until 9/4/15. I don't want to lose any interest on my current ISA, should my new provider complete the transfer before my current ISA matures.

Thanks for your help and advice.

Gizasmum

Can anyone help?

badger09

Given your time pressure, I won't comment that a cash ISA may not be the best vehicle for your £12k savings

kteirvine wrote: »

Can anyone help clarify things for me please. Apologies for all the questions, but although normally financially astute I am having a complete mental block with this!

I have a 2 year Fixed Rate Cash ISA with Bank of Scotland ISA worth £12k, which allows me to reinvest it from 9/4/15. I am starting to look at what I should do with this money, although I don't want to lock it away for any longer than 2 years. I have not invested (so far) in a cash ISA in 2014/15.

If I open a new 2 year fixed ISA with a new provider, one that accepts transfers in, what is the correct order to do the transfer? Is it (a) open new ISA, pay new money in, transfer in old ISA OR (b) open new ISA, transfer in old ISA, pay new money in OR (c) it doesn't matter whether I pay in or transfer in first?

It doesn't usually matter what order you do this in, you just ask your new provider to arrange the transfer for you.

However, if you want to to subscribe some or all of your £15k ISA allowance for this tax year 2014/15, you should open the new ISA immediately and pay in as much as you can/want to before 5th April - remembering that Friday 3rd is a Bank Holiday.

Given the time constraint, if you really do want to pay into a cash ISA this tax year :cool:, just open an instant access one with any provider, as you can always arranged for it to be transferred after 6th April.

kteirvine wrote: »

Also given that my ISA matures on 9/4/15, which is only a few days into the new tax year, do I have to wait until just days before that to start the ball rolling to open a new one or can I open it now in preparation for the transfer? I believe I have to give at least 5 working days notice to Bank of Scotland so need to decide very quickly. My concern is that if I were to open a new ISA, say tomorrow, and tell the new provider that I want to transfer in, my Bank of Scotland ISA funds aren't physically going to be available to move until 9/4/15. I don't want to lose any interest on my current ISA, should my new provider complete the transfer before my current ISA matures.

Thanks for your help and advice.

When you complete the new provider's transfer form, there will be several options, one of which will be worded something like 'Serve the full notice period' or 'Transfer after the maturity date'.

niktheguru

As the above poster has said. If you want to transfer your existing ISA and pay into THIS YEARS (2014/15) ISA amount then you should open the new ISA ASAP and deposit what you need to for this year as soon as you can. You can also put a transfer form in for the old isa amount to transfer into your new isa, and in the tick box make sure you say that you only want to transfer the isa without penalties and with the appropriate notice, then you wont lose any money.