Move cash ISA before 5th Apr

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I currently have a cash ISA with Barclays and given their shocking interest rate I was looking to move it to a provider with a better interest rate. I've had the ISA for a few years so it has previous years allowances in it. As a Nationwide customer I saw there Flexclusive ISA allows previous years allowances to be moved across from your current provider.

My only question is, IF I set up the new ISA with Nationwide today online and the cash goes through AFTER 5th April (which is likely as it can take up to 14 working days) does the transferred amount then count towards my allowance for 2016/17?

Or because I set it up in this tax year, does it not affect my allowance for next year?

Hope that's clear enough. First time using this forum so sorry for any ignorance/mistakes!

Comments

  • LXdaddy
    LXdaddy Posts: 693 Forumite
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    Whether the transfer happens before or after April 5th is immaterial. If the money in the ISA was contributed in previous tax years it is "old" money and does not count against the then current year's contribution limit.
  • Gst2016
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    So after 5th April, I could transfer my 'old' money into an ISA with a better rate, and still have the 2016/17 allowance to use on top of that?
  • LXdaddy
    LXdaddy Posts: 693 Forumite
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    Gst2016 wrote: »
    So after 5th April, I could transfer my 'old' money into an ISA with a better rate, and still have the 2016/17 allowance to use on top of that?
    Yes that is correct
  • Gst2016
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    Fantastic thank you for your advice. I'm off on a stag-do this weekend so today was last chance to do it online. Looks like I'll be investigating all sorts of ISAs/current accounts once I'm back.
  • badger09
    badger09 Posts: 11,248 Forumite
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    BUT

    What LXdaddy said is only true if you ask the new ISA provider to arrange the transfer for you.

    If you move the money yourself on or after 6th April, it will use your ISA allowance for 2016/17.

    Before others ask - are you sure a cash ISA is the best place for your savings at the moment?
  • LXdaddy
    LXdaddy Posts: 693 Forumite
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    Excellent point badger09


    ISA transfers need to be executed by the receiving organisation to stay "inside the wrapper". If you take the money out of one ISA into your current account (or even in £20 notes!) and then deposit into a different ISA account it then counts as "new" money against that year's allowance.
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