Paying into and ISA once it has been transferred

beenym1

Hi
I am looking to transfer my current ISA to Nationwide. I have been advised by Nationwide that as I have already paid into my ISA this tax year I will not be able to pay into it again until the next tax year, if I transfer if to them.

Is this correct? It seems a bit strange that you are allowed to move your ISA to get better rates, but you can't actually pay anything else into it.
:eek:

le_loup

You will be able to pay into it up to the total allowed for this year. How much did you pay into the original ISA for this tax year?

beenym1

I thought so! I've only paid about £3000, so I have plenty of allowance left.

colsten

If you transfer any of your current tax year's contribution, you must transfer all of them. Once that transfer is complete, you can add additional money, so you can use up your annual allowance.

Nationwide have either given you naff information or you have misunderstood them.

beenym1

I think the former rather than the latter. I quizzed him about it in depth and he couldn't really give me an explanation other than that's the rules.

I was beginning to think I was losing the plot.

badger09

Don't forget to use Nationwide's ISA transfer process though.

The Nationwide ISA isn't a Fixed rate/fixed term product is it? If so, the Nationwide rep could be right as they seem to allow only initial lump sum deposit or transfer in, and no further subscriptions. This isn't uncommon with those types of ISA.

le_loup

........ but Nationwide, unlike most others, do allow you to have as many ISA products as you want. So if it is a fixed rate product you are transferring to, you can still add to your ISA by taking another product ... could even be another slug of fixed rate product. (Different account number, different expiry date.)

masonic

badger09 wrote: »

The Nationwide ISA isn't a Fixed rate/fixed term product is it? If so, the Nationwide rep could be right as they seem to allow only initial lump sum deposit or transfer in, and no further subscriptions. This isn't uncommon with those types of ISA.

If that is the case, the rep should have pointed out that the rest of the OP's allowance could be paid into a different Nationwide cash ISA.

Edit: Beaten to the punch.

jimjames

masonic wrote: »

If that is the case, the rep should have pointed out that the rest of the OP's allowance could be paid into a different Nationwide cash ISA.

Edit: Beaten to the punch.

Or also paid £2500 of it into the Nationwide 5% current account for a better rate.

beenym1

Nope just a standard ISA, nothing Fixed. It's a bit of a worry that the sales guy is giving duff info before you have even got an account with them.

le_loup

Nationwide do have a different call number specifically for ISAs:
0800 302011
But anyway, rest assured that we know more than the call centre operative and you will be able to add to a transferred ISA.