Closing an ISA after transfer

colsten

In the times it took to post the questions, you could have filled in the Virgin transfer form. You'd then not have any old account hanging about, and there would be no questions over whether you are breaking any ISA rules.

YorkshireBoy

GingerBob wrote: »

I've had it open for a few years, sometimes using it, sometimes not. If they were to up the interest rate at some point in the future it would still be available.

It's more likely (indeed certain?) that they wouldn't lift the rate on this product. Instead they'd launch a new product. Which is why I asked why you'd want to leave it open.

However, let's clarify my question: do HMRC permit you to hold any number of empty ISAs?

Maybe try the HMRC website?

Vortigern

GingerBob wrote: »

I'll be emptying the FD ISA. Am I obliged to close it?

You're not obliged to close it, but if you close it they'll pay interest up to the date of closure.

If you don't close it, they'll pay interest on the usual date.

jimjames

karcher wrote: »

If you want to transfer, never, ever, ever, withdraw money from a cash ISA!
You'll immediately lose all the lasting tax benefits.

A very old guide that is quite out of date now. While it might have been true a few years ago when the allowance is £20k per year, if you aren't using that up there is zero advantage in transfer if your amount is below that. In fact in some circumstances it's actually better to withdraw and pay in as it avoids charges and allows you to utilise accounts that don't allow transfer. Obviously only applies if the amount is below £20k. I've moved funds from S&S ISAs as cash outside the ISA wrapper because it means I don't pay exit fees.

isasmurf

GingerBob wrote: »

I've had it open for a few years, sometimes using it, sometimes not. If they were to up the interest rate at some point in the future it would still be available.

But you wouldn't be able to use it as you would have subscribed to another ISA, and if you went a full tax year without putting money into it, you would need to fill out a re-activation form to restart using it.

Gadfium

GingerBob wrote: »

. I'm not using the ISA transfer service (too much messing about).

But posting on an internet forum and debating the Terms and Conditions with a bunch of strangers is less "messing about"?? Really?

Transferring means posting one piece of paper and letting the new ISA provider doing the work. How is that too much hassle?

Doing it your way means losing the allowance for next year. I can't see any circumstances where doing it your way and losing a years ISA allowance is less "messing about" and makes more sense than using the transfer service.

GingerBob_3

Gadfium wrote: »

But posting on an internet forum and debating the Terms and Conditions with a bunch of strangers is less "messing about"?? Really?

Transferring means posting one piece of paper and letting the new ISA provider doing the work. How is that too much hassle?

Doing it your way means losing the allowance for next year. I can't see any circumstances where doing it your way and losing a years ISA allowance is less "messing about" and makes more sense than using the transfer service.

Because I don't particularly want next year's allowance. I have just over £15k in the current FD investment. My plan is to keep approximately that amount in an ISA (coincidence that the allowance is around that figure). I just want 1% on 15K, rather than the 0.5% I'm currently getting. Other money is invested elsewhere, including current accounts.


However, all things considered - including the 20th century ISA transfer feature of having to print out a pdf, fill it in manually, and then post it off (!) - I will, nevertheless do this, just to keep all my options open. I suppose the one redeeming feature from my point of view is that my wife's ISA, which we are also transferring to Virgin Money, can be handled in the same way and can go in the same envelope, thus saving one stamp (I assume Virgin will be able to handle two transfer applications in the same envelope, but who knows).


This business of not being able to take all the money out of an ISA - not sure where that comes from, but it is categorically wrong.


Thanks for all the above posts.

roxy28

isasmurf wrote: »

But you wouldn't be able to use it as you would have subscribed to another ISA, and if you went a full tax year without putting money into it, you would need to fill out a re-activation form to restart using it.

Would you need to re-activate the ISA before a transfer to another provider, but not add to it this tax year once its there.

YorkshireBoy

GingerBob wrote: »

This business of not being able to take all the money out of an ISA - not sure where that comes from, but it is categorically wrong.

It comes from the FD "Cash ISA KeyFacts and T&Cs" on their website, as I told you last night. Condition 3.2 (at the foot of page 7) in that document differs from that in the T&Cs in your possession, as it later transpired. I'm not sure why though, since they're the most recent, effective 6th April 2016.

GingerBob_3

YorkshireBoy wrote: »

It comes from the FD "Cash ISA KeyFacts and T&Cs" on their website, as I told you last night. Condition 3.2 (at the foot of page 7) in that document differs from that in the T&Cs in your possession, as it later transpired. I'm not sure why though, since they're the most recent, effective 6th April 2016.

I've seen it now. My Google search didn't list that one.