Moving ISA to Another Bank?

Noneforit999

Hi

I have an instant access ISA with Lloyds which I opened a few years back, it has like £400 in it as I use it as a 'savings' account to stick money in for car repairs each month etc and then just draw out when I need it.

I already have a savings account with Lloyds which has our main savings in it but I wanted another savings pot to keep the car money separate, hence the Cash ISA.

The ISA move process seems over the top for the sake of £400 so can I not just move the money to my current account, shut down the ISA with Lloyds and open a new ISA with Barclays and stick the £400 into it?

I am looking to move away from Lloyds to Barclays but want to avoid visiting a branch if I can, hence not wanting the drama of the ISA move process.

Ta

eskbanker

The main benefit of the direct ISA transfer process is to safeguard the tax-free status of the transferred balance, but this is a complete non-issue for balances well below the annual ISA contribution limit of £20K, so no, there's nothing stopping you from doing what you propose.

Chances are that you'd earn a bit more interest in a non-ISA savings account anyway: https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

This may not make much difference to your £400 pot but if your main savings are with Lloyds then you might wish to relocate those somewhere where you'll earn more interest....

Noneforit999

eskbanker wrote: »

The main benefit of the direct ISA transfer process is to safeguard the tax-free status of the transferred balance, but this is a complete non-issue for balances well below the annual ISA contribution limit of £20K, so no, there's nothing stopping you from doing what you propose.

Chances are that you'd earn a bit more interest in a non-ISA savings account anyway:

This may not make much difference to your £400 pot but if your main savings are with Lloyds then you might wish to relocate those somewhere where you'll earn more interest....

Excellent, I was hoping this might be the case!

Yes, I am looking at alternatives for the other savings which is a decent enough amount that I could be doing better than the 0.25% Lloyds are giving me.

Thanks for your help.