nationwide 2% isa - can i transfer money in via current account?

skittles121

I have a question about isa rules and if this is allowed...

Theres the Nationwide 2% regular saver isa where transfers in are not allowed and you can only put a maximum of £1270 each month.


Can I simply drip feed this £1270 monthly amount from my existing isa (which was opened by transferring last years isa) via a current account like shown below

ISA 1 (where transfers allowed) > current account > new 2% ISA 2

Can I do this, is this allowed?

MARTYM8`

skittles121 wrote: »

I have a question about isa rules and if this is allowed...

Theres the Nationwide 2% regular saver isa where transfers in are not allowed and you can only put a maximum of £1270 each month.


Can I simply drip feed this £1270 monthly amount from my existing isa (which was opened by transferring last years isa) via a current account like shown below

ISA 1 (where transfers allowed) > current account > new 2% ISA 2

Can I do this, is this allowed?

I have done NW internal ISA transfers before and they do allow you to transfer online between different ISAs.

But in your case you are withdrawing funds from your prior year ISA and paying it into your current account – therefore you are losing the ISA wrapper on those funds by doing that.

When you transfer the funds to the regular saver ISA it must by definition be a new payment for the 2015-16 tax year.

So you can make the transaction – but you lose the ISA wrapper for the previous years money.

This may not be a problem for you – but you are in effect losing previous years tax wrapper on your funds and diminishing the total cumulative sums you can hold in a cash isa at 31 March 2016.

le_loup

Per your heading - yes you can transfer via your current account.

MARTYM8`

le_loup wrote: »

Per your heading - yes you can transfer via your current account.

Yes - its allowed.

But its not a transfer in as such in ISA terms - you are withdrawing cash from a prior year ISA (thus losing the tax wrapper) into your current account and then transferring funds as if they were 2015-16 new funds (as they must be for the regular saver).

So its not an ISA transfer - but a withdrawal and use of the funds to fund your 2015-16 ISA. That to me doesn't seem the most sensible route when there are other places you could transfer to while keeping the ISA wrapper which pay almost 2% anyway.

skittles121

MARTYM8` wrote: »

So its not an ISA transfer - but a withdrawal and use of the funds to fund your 2015-16 ISA. That to me doesn't seem the most sensible route when there are other places you could transfer to while keeping the ISA wrapper which pay almost 2% anyway.

Where do you suggest I could make the temporarily transfer to keep the tax wrapper, I can't find many mainstream easy access isa this year which give 2%?