Transferring ISA

Victorwelldue

A few years ago I put £15,240 into a Coventry cash ISA which is still there and I've had the annual interest payments every year. Unfortunately I never got round to using my subsequent years allowances or taking advantage of the increase to £20K but I am now trying to get my savings in order and maximise my ISA interest. I've seen Paragon suggested as current best rate for easy access ISA so plan to deposit £20K with them. What's the best way to go about this? Do I close my Coventry account then start afresh with Paragon or transfer the £15,240 from Coventry to Paragon then top up to £20K? I am a higher rate tax payer and I will maximise my £500 interest savings allowance in a savings account elsewhere.

eskbanker

Once you open the Paragon account, it doesn't matter in which order you deposit the £20K or initiate the transfer, but ensure you use Paragon's ISA transfer process to move the funds from Coventry....

grumiofoundation

You can contribute £20000 to ISAs (across all types) each tax year. Previous years contributions do not count towards this. 

You can open a new ISA, pay in £20000 and transfer the £15240 from coventry to this new ISA.

If you close the account yourself and withdraw the money it will lose its ISA status. 

lisyloo

I recently did Coventry to paragon and it was easy, all online and really quick.
when you open your account make sure you say you are transferring in.

Victorwelldue

Thanks all, now done. The only fly in the ointment is that I have to send them documents to confirm my identity including passport or driving license and since I don't fancy sending originals I'll have to pay the post office £12.75 to certify copies. Not sure why they couldn't properly identify me online with credit checks etc as I don't usually have any problems being found with other online applications but cant be helped I suppose.

Albermarle

Victorwelldue said:

Thanks all, now done. The only fly in the ointment is that I have to send them documents to confirm my identity including passport or driving license and since I don't fancy sending originals I'll have to pay the post office £12.75 to certify copies. Not sure why they couldn't properly identify me online with credit checks etc as I don't usually have any problems being found with other online applications but cant be helped I suppose.

These identity checks crop up from time to time , usually without any obvious reason .