Internal transfer of Virgin ISA

Frogletina

I have a fixed ISA with Virgin maturing in a few days which is going to automatically transfer into Virgin's easy access ISA version 2 paying 0.35%. I already have a Virgin easy access ISA version one paying 0.50%. The advice that I've been given is that once it is in the version 2 I can self transfer it into the version1 myself as they are both with Virgin and getting Virgin to do it would involve more time and forms to be filled. Has anyone done a self transfer with Virgin?

After all monies are in the Version 1, am planning to move most of this transferred money into a fixed rate with another ISA provider.

I'm intending to top up the balance of my current easy access flexible ISA to £20,000 at some point in the future. It originally had a balance of £20,000 for the current tax year, but I've been withdrawing from it steadily to pay my regular savers, but I have several regular savers maturing in the next two months. I like the flexibility of the easy access ISA. 

Virgin confused me as they said I cannot transfer to a fixed rate ISA, until I said that I knew the money didn't have to stay in an easy access ISA forever! I know that I need to ask the new provider to arrange the transfer. I was completely unaware that a self transfer could be done when doing Virgin to Virgin. 

soulsaver

If you can evidence the advice came from Virgin then you're home & hosed. If not, ask Virgin and ask for written confirmation (by email) or point to it on their webby.

Frogletina

I was advised I could do that via a telephone call today.

masonic

This isn't a transfer as far as HMRC is concerned. How providers choose to arrange money held within an ISA wrapper is up to them. If the facility exists to directly move money from one ISA account to another then such a facility would only exist if Virgin was ok with it, and it would certainly be the most convenient way to do it. Remember that if you go on to transfer out to a different provider, you cannot split any current year subscriptions.

Albermarle

Are you aware that Cash ISA's are largely unnecessary nowadays for most people ?
A basic rate taxpayer can earn up to £1000 in interest tax free. ( higher rate taxpayer £500)

So if you are not close to that figure and never likely to be , then a non ISA account will normally pay more interest than an ISA one . 

Frogletina

I gone over the £1000 limit a few times. Its a fine balance. That's  why I use the flexible isa to feed my regular savers but I have two fixed as well.

At the end of the tax year I try to ensure my isas are at the max but happy to withdraw afterwards to higher interest rate accounts.

I have a two year isa that matures in April and will be looking for somewhere to put that money. With interest rates rising I don't want tie it up long term.

Albermarle

Frogletina said:

I gone over the £1000 limit a few times. Its a fine balance. That's  why I use the flexible isa to feed my regular savers but I have two fixed as well.

At the end of the tax year I try to ensure my isas are at the max but happy to withdraw afterwards to higher interest rate accounts.

I have a two year isa that matures in April and will be looking for somewhere to put that money. With interest rates rising I don't want tie it up long term.

You must have a lot of cash savings . You may want to consider switching some of it to increased pension constributions/Stocks and shares ISA/ mortgage overpayment etc 
Although without knowing you /your circumstances it is difficult to know what might be best.

Frogletina

Frogletina said:

I have a fixed ISA with Virgin maturing in a few days which is going to automatically transfer into Virgin's easy access ISA version 2 paying 0.35%. I already have a Virgin easy access ISA version one paying 0.50%. The advice that I've been given is that once it is in the version 2 I can self transfer it into the version1 myself as they are both with Virgin and getting Virgin to do it would involve more time and forms to be filled.  

Oh dear. I knew this would end in tears

I've come back from my holiday and rather than do the transfer myself I decided to ring once more and the advisor said there would be no problem and that he would do the transfer. Except when he tried to he couldn't transfer it all as a lump sum.

He started to make smaller transfers until my original flexible isa reached £20,000 and then said he couldn't transfer anymore as I had reached my limit! I told him I had not reached my limit as this was a transfer of a previous year's Isa and he said I'd have to go to a branch to resolve the issue.

I said I was not going to accept that, and that I wanted to speak to a manager - when he couldn't find one I said that I wanted to raise a complaint. I eventually got put through to the complaints team and was told there that I had gone over my limit as during the year I had put in £23,000. I then had to explain with flexible isas you can take money out and put it back in during the tax year so long as you don't go over the £20,000. She was not convinced. 

That aside, I told her my issue was that I wanted to transfer in a previous years isa and had been told twice that there would be no problem with me doing it, but I decided to ring anyway to ensure once more that it was ok to do so.

She told me that as I wouldn't accept what she said as being correct that she would raise it as a complaint and I would get a call back. It could take up to 4 days!

Oh dear...

masonic

Suggest you point them to their website if there is still some doubt about ISA flexibility: https://uk.virginmoney.com/virgin/isa/flexible-isa/#FlexISA
There is, however, nothing in the T&Cs to suggest that Virgin money operate any kind of internal transfer process whereby money can be moved from one account to another without counting as a new subscription. I couldn't see anywhere that they said that they treat multiple ISAs held with them as one either. Worst case, you can flexibly withdraw the £20k "newly subscribed" to the old ISA and pay it back into the new ISA as replacement subscriptions in order to get back to where you started and free up this years allowance.

Frogletina

masonic said:

Suggest you point them to their website if there is still some doubt about ISA flexibility: https://uk.virginmoney.com/virgin/isa/flexible-isa/#FlexISA
There is, however, nothing in the T&Cs to suggest that Virgin money operate any kind of internal transfer process whereby money can be moved from one account to another without counting as a new subscription. I couldn't see anywhere that they said that they treat multiple ISAs held with them as one either. Worst case, you can flexibly withdraw the £20k "newly subscribed" to the old ISA and pay it back into the new ISA as replacement subscriptions in order to get back to where you started and free up this years allowance.

I also couldn't see anywhere that said I could do it online, which is why I contacted them originally to ask them how to transfer the fixed rate ISA, and contacted them again today as I was still unsure I'd been given the right advice. They specifically said that it would avoid the paperwork if I did it online, and would be quicker, and today the advisor said he could do it for me, but then found out that he couldn't transfer the whole amount. 

I'm not going to move the money back myself as I can imagine that it won't let me transfer the whole amount back to the new ISA. I will leave it as it is and wait to see what the complaints team have to say. I am planning to replace this year's subscriptions which I flexibly withdrew and then transfer the whole lot before the end of this tax year. 

Frogletina

After 3 letters to say the complaints team were still looking into this, my complaint has now been dealt with. 

Compensation of £50 was offered which I have accepted and all monies are now in the correct account. I am now in the process of replacing the amount I had withdrawn flexibly, but had not been able to put back.