Splitting and transferring ISA

spud17

I've not paid anything into any ISA so far this tax year, 2015/16.

I currently have one ISA with bank A.

I want to transfer a portion of this to an Easy Access ISA with bank B, for use later in 2015, along with a bit extra for emergencies.
The remainder from bank A will be transferred into a 3 year fixed rate account at bank C.
I also have some money in bank D which needs to go into an ISA, probably at bank C.

Have I missed out anything?
Do I have to wait until the transfers are all completed before I can pay into this years ISA?

Porcupine

spud17 wrote: »

Have I missed out anything?

No, sounds sensible.

Do I have to wait until the transfers are all completed before I can pay into this years ISA?

No in general, but it may depend on the timing of the fixed rate account. For example, they may decide that your cash deposit is the account opening balance, and the transfer arrives too late for the limited time issue. Or you could end up with two fixed rate accounts with different end dates (this happened to me when the accounts had a fixed withdrawal penalty, meaning I would have had to pay two penalties to withdraw).

So what I'd do is send the transfer form to bank C, while at the same time sending them a cheque for £x drawn on bank D. That means the old and new are tied together.

As far as amounts go, you worded it so that you transfer £y to bank B, and the remainder to C, but how about transferring a fixed amount to C and then the remainder to B? That way you don't have to wait for the transfer to B to complete before you open the timing-critical C account.

colsten

spud17 wrote: »

The remainder from bank A will be transferred into a 3 year fixed rate account at bank C.
I also have some money in bank D which needs to go into an ISA, probably at bank C.

You need to ascertain that bank C will allow more than one transfer in, and in what timeframe. Many fixed term savings accounts have very stringent deposit rules.

spud17

Thanks for the replies.
I've used letters instead of names to try and keep it simple, it works for me.
It looks like I just need to clarify a couple of points with the banks.
I've possibly made a small mistake in terminology, I've called it a 3yr fixed rate account, in fact it is just 'fixed until 30-04-18', not the same thing. It is a limited issue product.

As far as amounts go, you worded it so that you transfer £y to bank B, and the remainder to C, but how about transferring a fixed amount to C and then the remainder to B? That way you don't have to wait for the transfer to B to complete before you open the timing-critical C account.

Good point, and I will do it that way.
C is a branch based account, and I can go there tomorrow and set up everything.
B is going to be done online, and I can do that once the first transfer has gone out.

You need to ascertain that bank C will allow more than one transfer in, and in what timeframe. Many fixed term savings accounts have very stringent deposit rules.

It will be a transfer, and a deposit from a savings account, I can't see anything in the details not allowing that.

To confirm, there is no problem with me depositing my saved amount into C, even though I won't have transferred the final amount from A to B?

Archi_Bald

spud17 wrote: »

To confirm, there is no problem with me depositing my saved amount into C, even though I won't have transferred the final amount from A to B?

Provided you have not paid any new money into A or B since April 6 this year, and subject to the terms of C, you will be ok to pay new money into C this financial year.