Think I've made a big mistake

isasmurf

There are no restrictions on transfers nor on the number of transfers you can make in a year. All providers must allow ISA funds to be transferred in full within 30 days of your instruction to your new ISA provider (15 days for cash ISAs).

With the RBS account, you need to clarify whether a part transfer will be treated as being from the first £20k or the remainder. My understanding of this account is that if you withdraw from the first £20k, everything else is paid without the bonus.

babe-ruth

isasmurf wrote: »

There are no restrictions on transfers nor on the number of transfers you can make in a year. All providers must allow ISA funds to be transferred in full within 30 days of your instruction to your new ISA provider (15 days for cash ISAs).

With the RBS account, you need to clarify whether a part transfer will be treated as being from the first £20k or the remainder. My understanding of this account is that if you withdraw from the first £20k, everything else is paid without the bonus.

Thank you, I feel armed with information for when the rbs lady calls me back to confirm the Status of my account. That is if she does in fact call me back over the next couple of days. Thank you

jimjames

babe-ruth wrote: »

Thank you, I feel armed with information for when the rbs lady calls me back to confirm the Status of my account. That is if she does in fact call me back over the next couple of days. Thank you

You don't need to speak to RBS at all. Just deal with whichever company you are moving to.

However if you have already filled all current accounts and have £46k in cash ISAs on top, are you sure you really need so much cash?

babe-ruth

jimjames wrote: »

You don't need to speak to RBS at all. Just deal with whichever company you are moving to.

However if you have already filled all current accounts and have £46k in cash ISAs on top, are you sure you really need so much cash?

Thanks Jimjames, I would welcome any suggestions what else I could do. I don't fancy the idea of stocks and shares.

Also, our current situation has meant we have had to use some savings i.e. Dip into Santander money and it did cross my mind if I should top it back up with money taken from our Isas. What say you?

Thanks

isasmurf

babe-ruth wrote: »

Thanks Jimjames, I would welcome any suggestions what else I could do. I don't fancy the idea of stocks and shares.

That's fine. Stocks and Shares aren't for everyone. You should keep your money where you are comfortable.

babe-ruth wrote: »

Also, our current situation has meant we have had to use some savings i.e. Dip into Santander money and it did cross my mind if I should top it back up with money taken from our Isas. What say you?

Thanks

You should certainly keep topped-up any high interest current accounts and regular savers you have. They will accrue more interest, even after tax if you exceed your personal savings allowance, than a cash ISA.

I would also suggest transferring the ISA to somewhere where you can take advantage of the ISA flexibility rules by withdrawing the money from the ISA and placing it in a higher interest account before remembering to put it back in the ISA at the end of the tax year. Most of my cash ISA has been withdrawn and placed in a notice account to earn a higher rate of interest than in the ISA. To make sure I don't forget to give sufficient notice, I've already given notice to withdraw at the end of March to put it back in the ISA.

If you do this then you need to make sure that either you don't exceed your personal savings allowance, or where you do, the interest after tax is still higher than in the cash ISA.

babe-ruth

isasmurf wrote: »

That's fine. Stocks and Shares aren't for everyone. You should keep your money where you are comfortable.


You should certainly keep topped-up any high interest current accounts and regular savers you have. They will accrue more interest, even after tax if you exceed your personal savings allowance, than a cash ISA.

I would also suggest transferring the ISA to somewhere where you can take advantage of the ISA flexibility rules by withdrawing the money from the ISA and placing it in a higher interest account before remembering to put it back in the ISA at the end of the tax year. Most of my cash ISA has been withdrawn and placed in a notice account to earn a higher rate of interest than in the ISA. To make sure I don't forget to give sufficient notice, I've already given notice to withdraw at the end of March to put it back in the ISA.

If you do this then you need to make sure that either you don't exceed your personal savings allowance, or where you do, the interest after tax is still higher than in the cash ISA.

Thank you so much Isasmurf for your guidance, I just need to get my head around this now!