Confusion over ISA transfer in from another bank??

goldbyron

Hi

I am really confused with the ISA transfer rules and wonder if someone can help me. I have an old ISA (NW) with 13k in from last financial year and no payments in at all this year. Have just opened a new ISA with another bank entirely for this financial year.

If I wanted to transfer the money from my old to new ISA do I have to do a transfer in form? It is highly unlikely I will reach the max limit of 15.2k this financial year. Or can I just transfer the money to my new ISA without having declare anything if I am not concerned about reaching the maximum limit? It seems a bit complicated and in future I will try and keep my ISAs in one place....

Thanks for any help or advice

Archi_Bald

Assuming your new ISA does allow transfers in: the safest is to fill in an ISA transfer form and then your new ISA provider will do the transferring for you. The form is very simple.

goldbyron

It does allow transfers in - just wanted to avoid more form filling and complications! Thanks though - I will bite the bullet and just do it.

badger09

If you use the new ISA provider's transfer forms, you would be able to pay in new money up to £15240 before 5th April 2016.

If you 'just transfer the money to your new ISA' ie effectively take the £13k out of the NW (NatWest? Nationwide?) ISA and pay it into your new one, you would be able to pay in up to £2240 before 5th April 2016.

Given the sums involved, are you sure a cash ISA is the best for you at the moment? Are you aware of the various current accounts paying 3% - 5%?

KGriff

Goldbyron,

You have a new ISA for this year and the old NW ISA for last year.
Get a transfer form from your new provider (usually available on the new providers website) fill it in stating the account details etc. of the NW ISA and send it off to your new provider who will then call for the money from your old ISA and put it in the new account.

Note if you use the transfer form the amount of money deposited does NOT count towards this years allowance so you can then still deposit the full £15,240 should you suddenly have that money become available to you before the end of this financial year.

However like badger09 says if you withdraw the money from the NW ISA account yourself and pay it in to the new ISA without using the transfer form, then the deposit WILL count as part of this years allowance.

Finally some are questioning why you have chosen a cash ISA account this year, when there are other current accounts etc. availble on the market that pay more interest on your cash (even after tax is deducted) than you can get in most ISA accounts. However this depends on your own circumstances and requirements.

These current accounts are mentioned on the MSE website and include the Santander 123 account etc.

Hope that helps.

goldbyron

Thanks for the advice - Ive printed off the transfer form now and will do it.

SnowMan

I had to fill in an ISA transfer form to transfer my First Direct cash ISA to a First Direct sharedealing ISA.

Got a surreal reply from First Direct after they received it

Thank you for your instructions to transfer your ISA account to First Direct. We confirm we have contacted First Direct to initiate the transfer of your plan and will contact you again when we are expecting receipt of these

It creates a vision of a First Direct employee holding a phone up to each ear and talking to himself, although judging by the time it is taking to go through he must have failed to get through to himself:rotfl: