Cash ISA transfer

MDTDTD

Evening Guys,

I have a cash ISA that I've topped up this tax year. I would like to know whether it is possible to transfer my ISA balance to 2 new providers in this tax year.

I understand I won't be able to add any new money to these new ISAs but is it possible to do 2 separate transfers (50% each) from my existing ISA to 2 new ISAs with different banking institutions and close my existing ISA.

Or am I only allowed to transfer my balance to 1 new provider?

Thank you for any answers to my questions.

Please stay safe!

colsten

If you transfer any of the money deposited in the current tax year, you must transfer all of that new money, in the same transfer. Whether you can then make further deposits into the ISA you transfer to depends on the T&Cs of that ISA, and on how much of your allowance is left.

Any money remaining in your old ISA can then be transferred to another ISA, or to several other ISAs.

The above are the HMRC rules but ISA providers are not obliged to offer partial transfers out, or in. You would have to check with your old and new providers what they offer.

MDTDTD

colsten said:

If you transfer any of the money deposited in the current tax year, you must transfer all of that new money, in the same transfer. Whether you can then make further deposits into the ISA you transfer to depends on the T&Cs of that ISA, and on how much of your allowance is left.

Any money remaining in your old ISA can then be transferred to another ISA, or to several other ISAs.

The above are the HMRC rules but ISA providers are not obliged to offer partial transfers out, or in. You would have to check with your old and new providers what they offer.

So for example, I've deposited £5,000 into this tax year and my ISA balance is £50,000.

I can just transfer £25,000 to 2 separate ISA providers if they both allow partial transfers out, and then I can close my existing ISA.
I believe my existing ISA allows for partial transfers out .

Would that be correct?

Sorry if I'm asking a dumb question, I just want to ensure I've got it right.

Thank you for your answer!

colsten

You will have to tell new provider A that your transfer amount (£25K) contains a subscription (deposit) for the current tax year (£5K) and that you request the transfer of that complete subscription

You have to tell new provider B that your transfer request does not contain any current year's subscription. You can either ask then to transfer £25K, or the remaining balance.

If both transfer amounts are for £25K, you will be left with interest in your old ISA. You can withdraw this amount to a non-ISA account. If you prefer to keep it in an ISA wrapper, you can either leave it in the old ISA, or you can wait until transfer to provider A has been completed, and the request provider B to transfer the full remaining amount. This would transfer the £25K plus interest up to closing date, and also close your old ISA.

Hope this makes sense. Have a look at the transfer request forms, that should help you understand what is required.

MDTDTD

colsten said:

You will have to tell new provider A that your transfer amount (£25K) contains a subscription (deposit) for the current tax year (£5K) and that you request the transfer of that complete subscription

You have to tell new provider B that your transfer request does not contain any current year's subscription. You can either ask then to transfer £25K, or the remaining balance.

If both transfer amounts are for £25K, you will be left with interest in your old ISA. You can withdraw this amount to a non-ISA account. If you prefer to keep it in an ISA wrapper, you can either leave it in the old ISA, or you can wait until transfer to provider A has been completed, and the request provider B to transfer the full remaining amount. This would transfer the £25K plus interest up to closing date, and also close your old ISA.

Hope this makes sense. Have a look at the transfer request forms, that should help you understand what is required.

Thanks, you've made it very clear.

badger09

MDTDTD said:

colsten said:

You will have to tell new provider A that your transfer amount (£25K) contains a subscription (deposit) for the current tax year (£5K) and that you request the transfer of that complete subscription

You have to tell new provider B that your transfer request does not contain any current year's subscription. You can either ask then to transfer £25K, or the remaining balance.

If both transfer amounts are for £25K, you will be left with interest in your old ISA. You can withdraw this amount to a non-ISA account. If you prefer to keep it in an ISA wrapper, you can either leave it in the old ISA, or you can wait until transfer to provider A has been completed, and the request provider B to transfer the full remaining amount. This would transfer the £25K plus interest up to closing date, and also close your old ISA.

Hope this makes sense. Have a look at the transfer request forms, that should help you understand what is required.

Thanks, you've made it very clear.

In addition to what colsten has said, my strong advice would be to wait until the first transfer of £25k has completed before initiating the second transfer. Then the second transfer can be for the full balance & to close the account. I've posted elsewhere about Santander rejecting one of my requests. 

MDTDTD

Like many of you guys, I'm planning to transfer my cash isa to a new provider. I'm currently with Coventry BS and their rate of 1.5% is dropping on 5th May.

I want to split my currently Isa balance between 2 providers. I'm currently looking at transferring half of my balance to the Charter Savings Bank who have 1.26% (1 year fixed rate) and once that transfer is completed, I plan to transfer the other half to Paragon as  it's a flexible Isa, which allows withdrawals and transfer in. I have already contributed 13,000 to this year's tax allowance contribution, so id prefer an Isa that'll allow me to contribute another 7,000 so I can fill my 20,000 allowance for this year and also allow me to withdraw if I end up needing to.

Can I can is there always a section on Isa transfer forms that allows you to state how much you have contributed to this year's tax free allowance, so the new provider knows how much contributions you are allowed to add or will my existing provider (coventry) inform the new providers I'm transferring too?

Does anyone have any other cash isa providers they'd recommend?

Also thank you to all the guys who've provided answers on my threads. You've been extremely helpful.

The rates seem to be dropping on a range of ISAs and I wish all easy access providers would just allow their products to be flexible, allow withdrawals and transfers in.

badger09

MDTDTD said:

Like many of you guys, I'm planning to transfer my cash isa to a new provider. I'm currently with Coventry BS and their rate of 1.5% is dropping on 5th May.

I want to split my currently Isa balance between 2 providers. I'm currently looking at transferring half of my balance to the Charter Savings Bank who have 1.26% (1 year fixed rate) and once that transfer is completed, I plan to transfer the other half to Paragon as  it's a flexible Isa, which allows withdrawals and transfer in. I have already contributed 13,000 to this year's tax allowance contribution, so id prefer an Isa that'll allow me to contribute another 7,000 so I can fill my 20,000 allowance for this year and also allow me to withdraw if I end up needing to.

Can I can is there always a section on Isa transfer forms that allows you to state how much you have contributed to this year's tax free allowance, so the new provider knows how much contributions you are allowed to add or will my existing provider (coventry) inform the new providers I'm transferring too?

Does anyone have any other cash isa providers they'd recommend?

Also thank you to all the guys who've provided answers on my threads. You've been extremely helpful.

The rates seem to be dropping on a range of ISAs and I wish all easy access providers would just allow their products to be flexible, allow withdrawals and transfers in.

The ISA transfer form allows you to choose whether to transfer Current Year and/or Previous Year subscriptions.

If you choose to transfer Current Year subscriptions, it is up to the ISA manager transferring out to tell the receiving ISA manager the relevant amount. 

If you choose to transfer some, or all of your Previous Year subscriptions, you get to say how much should be transferred.

I can't recommend any particular ISA provider as it depends what you're looking for. I assume you are certain that a Cash ISA is the best place for your savings?

MDTDTD

badger09 said:

MDTDTD said:

Like many of you guys, I'm planning to transfer my cash isa to a new provider. I'm currently with Coventry BS and their rate of 1.5% is dropping on 5th May.

I want to split my currently Isa balance between 2 providers. I'm currently looking at transferring half of my balance to the Charter Savings Bank who have 1.26% (1 year fixed rate) and once that transfer is completed, I plan to transfer the other half to Paragon as  it's a flexible Isa, which allows withdrawals and transfer in. I have already contributed 13,000 to this year's tax allowance contribution, so id prefer an Isa that'll allow me to contribute another 7,000 so I can fill my 20,000 allowance for this year and also allow me to withdraw if I end up needing to.

Can I can is there always a section on Isa transfer forms that allows you to state how much you have contributed to this year's tax free allowance, so the new provider knows how much contributions you are allowed to add or will my existing provider (coventry) inform the new providers I'm transferring too?

Does anyone have any other cash isa providers they'd recommend?

Also thank you to all the guys who've provided answers on my threads. You've been extremely helpful.

The rates seem to be dropping on a range of ISAs and I wish all easy access providers would just allow their products to be flexible, allow withdrawals and transfers in.

The ISA transfer form allows you to choose whether to transfer Current Year and/or Previous Year subscriptions.

If you choose to transfer Current Year subscriptions, it is up to the ISA manager transferring out to tell the receiving ISA manager the relevant amount. 

If you choose to transfer some, or all of your Previous Year subscriptions, you get to say how much should be transferred.

I can't recommend any particular ISA provider as it depends what you're looking for. I assume you are certain that a Cash ISA is the best place for your savings?

Im too scared to put my savings in anything other than a cash isa, especially during this climate. I'm not very well versed in stocks and shares ISAs.

Do you have any advice alternatives to cash ISAs?

badger09

Not allowed to give advice as that's a regulated activity. Would need more info to provide any meaningful suggestions - age, debts, existing pension provision, other savings etc.

If you're keeping large amounts in cash ISAs over many years, you will lose buying power due to inflation. If you're sure you want to keep so much in cash, could you find better interest rates outside an ISA? Assuming you're a basic rate taxpayer, you can have £1000 interest per annum without paying tax on it.  

Albermarle

Im too scared to put my savings in anything other than a cash isa, especially during this climate

When looking at investing in Stocks and shares , it is ( or should be ) a long term project. The current climate is not that relevant, indeed many people would say, from an investment point of view 'this climate' could well be a good time to invest .

Despite all the newspaper headlines about market crashes, the typical medium risk fund is down around 7 to 12 % this year,  and most will be back to the same level as a year ago, and considerably higher than they would have been 5 years ago. 

You should reconsider your 'fear' if only for a small part of your overall funds.

Charters have good reviews , as does Ford Money who offer a similar one year fixed rate .

To follow up Badger09's comments - a non ISA one year fixed savings account will pay between 1.5% and 1.65%.