ISA - help please!

Skint_Catt

Hi all,

I've only just realised that I opened a new ISA in August 2013 but never transferred my money. The new ISA now has a very poor interest rate.

My question is, do I still have to transfer my money, or can I close is & then shop around for the current best buy?

Thanks, C

McKneff

Just find a new provider, get them to open an account and also get them to transfer any funds. That is all you need to do. As far as I am aware, once an account is empty, it closes automatically.

Archi_Bald

How much is in the ISA? How much are you planning to put in this year? If the total is less than £15,240, you can just withdraw what's in the ISA and deposit it wherever you deem best. Which might well be outside of an ISA. If it's more than £15,240, you should ask your chosen new provider to transfer the old ISA for you.

Skint_Catt

Thanks McKneff, it's not closed - I can see it when I log onto my current acc.
Archi Bald - it's about 6k, unlikely to put anything in as currently still a stay at home Mom with no luck on the job front as yet. Surely just withdrawing it makes it liable for tax (when I become a taxpayer again!) if it's not in an ISA?

Archi_Bald

Skint_Catt wrote: »

Surely just withdrawing it makes it liable for tax (when I become a taxpayer again!) if it's not in an ISA?

Yes you will pay tax outside an ISA - as long as your total income is more than £15,600 this tax year - - is it?

But would you rather earn 1.5% without paying tax or 3, 4 or 5% and pay 20% tax on it?

Skint_Catt

Ah ok, sorry I see what you're saying. I used to be so finance savvy, but 4 years of baby, depression & no income has my brain cell withered!

Cheers x