Transfer From Cash ISA to Help to Buy ISA

stanton90210

I have a couple of questions please.


Q1) I have £40,000 from previous tax year's Cash ISA. Can I transfer all of this into the Virgin Money Help to Buy ISA (3% Variable) and will the whole £40,000 earn 3% interest like a regular cash ISA?


I understand that instead of being able to put in £15,240 in one tax year, I can only put in £200 a month up to a maximum of £12,000.


Q2) If a better Help to Buy ISA rate appears elsewhere, can I transfer out the whole amount from Virgin Money and put it into that new better one, without effecting the government bonus?


Thanks.

badger09

stanton90210 wrote: »

I have a couple of questions please.


Q1) I have £40,000 from previous tax year's Cash ISA. Can I transfer all of this into the Virgin Money Help to Buy ISA (3% Variable) and will the whole £40,000 earn 3% interest like a regular cash ISA?


I understand that instead of being able to put in £15,240 in one tax year, I can only put in £200 a month up to a maximum of £12,000.


Q2) If a better Help to Buy ISA rate appears elsewhere, can I transfer out the whole amount from Virgin Money and put it into that new better one, without effecting the government bonus?


Thanks.

Q1) NO you cannot transfer the whole £40k

In fact Virgin don't allow you to tansfer anything into their HTB ISA from another Cash ISA

Q2) Yes, as long as you use the new provider's ISA transfer process.

http://uk.virginmoney.com/savings/find/help_to_buy_isa/overview/

stanton90210

Thanks Badger09, I got confused because the MSE website Summary Box for Virgin Money says: "Allows previous ISA transfers? Yes".

No point opening for me then if I can't transfer the whole £40k.

badger09

stanton90210 wrote: »

Thanks Badger09, I got confused because the MSE website Summary Box for Virgin Money says: "Allows previous ISA transfers? Yes".

No point opening for me then if I can't transfer the whole £40k.

Never rely on a 3rd part website says, no matter how useful you've found it.
Never rely on the word of a well meaning (and well informed:p) stranger on an internet forum.

Always check T&Cs yourself;)

MARTYM8`

The policies vary.

Halifax I believe only allows you to transfer in from another isa to fund your initial HTB ISA £1000 lump sum. Further payments must be by standing order.

Nationwide allows you to fund both your initial lump sum and your ongoing monthly £200 instalments using a transfer from another ISA - its very easy with NW as you can do it all online (although obviously for the monthly £200 investment its easier if you are transferring from an NW isa).

darkidoe

MARTYM8` wrote: »

The policies vary.

Halifax I believe only allows you to transfer in from another isa to fund your initial HTB ISA £1000 lump sum. Further payments must be by standing order.

Nationwide allows you to fund both your initial lump sum and your ongoing monthly £200 instalments using a transfer from another ISA - its very easy with NW as you can do it all online (although obviously for the monthly £200 investment its easier if you are transferring from an NW isa).

Do you have to fill in the online form for the nationwide ISA transfer EVERY month??

I take it you cannot just transfer via online banking just like that.

MARTYM8`

darkidoe wrote: »

Do you have to fill in the online form for the nationwide ISA transfer EVERY month??

I take it you cannot just transfer via online banking just like that.

In theory you can just move it via online banking but its probably better to use the online ISA transfer route to be on the safe side so its fully treated as a transfer not a withdrawal and a 2016-17 investment.

It only takes a couple of minutes to fill the online form out - and they normally move the funds from your cash to HTB isa within 48 hours.

You just need to remember to do it every month.

darkidoe

MARTYM8` wrote: »

In theory you can just move it via online banking but its probably better to use the online ISA transfer route to be on the safe side so its fully treated as a transfer not a withdrawal and a 2016-17 investment.

It only takes a couple of minutes to fill the online form out - and they normally move the funds from your cash to HTB isa within 48 hours.

You just need to remember to do it every month.

Ah good doesn't sound too difficult. Just need to regig my monthly personal finance work flow. Thanks!