Transfer of easy access cash ISA to fixed rate

Loyalandtrue77

Hi there, I'm new to the forum, I posted on what I thought might be a more appropriate thread, but think that may be fairly inactive now.

I have one easy access cash ISA (BOS) that I renewed prior to the new tax year 22/23, and contributed the whole allowance on the 6th April 2022. I have decided to look around for a better rate of interest.

My question is, can I transfer some of the balance accrued over past tax years on my existing account, given that I've already used up my full allowance ? I'm struggling to interpret a lot of the wording on this subject.

I tried to open a new account (1 year fixed cash ISA) with ABL UK and was asked if I wanted to fund via current subscription, transfer of existing ISA, or both. Can anyone explain to me what this means ?

Any help is much appreciated, cheers.

Daliah

Subscription is new money for the current tax year - which obviously you cannot use as you have used your allowance already.

Transfer of existing ISA is as it says on the tin - a transfer of one or more existing ISAs. This can include your current year's ISA, and if it does, you must get the entire current year ISA transferred. For prior years, you can transfer some or all of your balance. You can transfer fixed term ISAs but this would come at a cost, usually x months of interest. Easy access ISAs can be transferred at any time without cost.

The most important thing about an ISA transfer is that you must ask the new ISA provider to do it for you. Don't attempt it yourself, as your money would lose its ISA protection. Your new provider will have a transfer request form. If you want to transfer more than one ISA, you will most likely have to fill in a separate transfer request for each.

Loyalandtrue77

Daliah said:

Subscription is new money for the current tax year - which obviously you cannot use as you have used your allowance already.

Transfer of existing ISA is as it says on the tin - a transfer of one or more existing ISAs. This can include your current year's ISA, and if it does, you must get the entire current year ISA transferred. For prior years, you can transfer some or all of your balance. You can transfer fixed term ISAs but this would come at a cost, usually x months of interest. Easy access ISAs can be transferred at any time without cost.

The most important thing about an ISA transfer is that you must ask the new ISA provider to do it for you. Don't attempt it yourself, as your money would lose its ISA protection. Your new provider will have a transfer request form. If you want to transfer more than one ISA, you will most likely have to fill in a separate transfer request for each.

Thanks for your help Daliah.

So, looks like I would be good to transfer, and make sure I select the 'transfer existing ISA' option only.

When you say previous tax year ISA, do you mean separate, dormant accounts that you haven't paid into in the current tax year ? My existing account (opened within 21/22 tax year) has funds that have been accrued over several previous years, but alos with the addition of 22/23 tax year allowance added on April 6th.

Do you mean that I'd have to transfer the entire balance ?

Loyalandtrue77

Looking more into this, the guide on transfer of ISA's on this website says that I can only pay into one cash ISA in any tax year. Doesn't that mean that I can't actually transfer my existing account, that I've paid into, to another new ISA ?

Everywhere I look seems to have either a similar statement to the above, or the complete opposite, saying that I can transfer a current year ISA to another one whenever I like.

This is probably extremely straightforward, and maybe I'm over thinking.

Albermarle

As already said you can have a cash ISA with new money in this tax year, and still transfer it to another one, as long as you transfer it all. So effectively you will still only have new money in one cash ISA.

When you say previous tax year ISA, do you mean separate, dormant accounts that you haven't paid into in the current tax year ? My existing account (opened within 21/22 tax year) has funds that have been accrued over several previous years, but alos with the addition of 22/23 tax year allowance added on April 6th.Do you mean that I'd have to transfer the entire balance ?

It means ISA's where the contribution was made in previous tax years- dormant is the wrong expression as they will still be earning interest.
Whether you have to transfer the entire balance will depend on the providers. Some will not allow partial transfers at all(either in or out) and I am guessing that just transferring the current years money will be possible with some, but not others.

Loyalandtrue77

Thanks for your help Albermarie.

My plan was to transfer the majority, but keep some since this was accrued in previous tax years. I think I'll probably just go for selecting the 'transfer from existing ISA' and see what happens.

Daliah

Loyalandtrue77 said:

Looking more into this, the guide on transfer of ISA's on this website says that I can only pay into one cash ISA in any tax year.

An ISA transfer does not count as paying into an ISA.

You can request an ISA transfer of your existing ISA to a new one, no problem.

Loyalandtrue77 said:

When you say previous tax year ISA, do you mean separate, dormant accounts that you haven't paid into in the current tax year ? My existing account (opened within 21/22 tax year) has funds that have been accrued over several previous years, but alos with the addition of 22/23 tax year allowance added on April 6th.

Do you mean that I'd have to transfer the entire balance ?

If you make a transfer, you only have to transfer the entire 22/23 balance, into one new ISA. You can optionally also transfer some or all of the previous year's money into that new ISA.


At the risk of confusing you further: you could also request transfers of some or all of the previous years' funds to more than one new ISA.

Loyalandtrue77

Daliah said:

Loyalandtrue77 said:

Looking more into this, the guide on transfer of ISA's on this website says that I can only pay into one cash ISA in any tax year.

An ISA transfer does not count as paying into an ISA.

You can request an ISA transfer of your existing ISA to a new one, no problem.

Loyalandtrue77 said:

When you say previous tax year ISA, do you mean separate, dormant accounts that you haven't paid into in the current tax year ? My existing account (opened within 21/22 tax year) has funds that have been accrued over several previous years, but alos with the addition of 22/23 tax year allowance added on April 6th.

Do you mean that I'd have to transfer the entire balance ?

If you make a transfer, you only have to transfer the entire 22/23 balance, into one new ISA. You can optionally also transfer some or all of the previous year's money into that new ISA.


At the risk of confusing you further: you could also request transfers of some or all of the previous years' funds to more than one new ISA.

Thanks, I'm getting there slowly, haha. That clears things up. The article is actually worded as only allowing one tax year cash ISA to be open at once, but think leaving the older funds from previous tax years doesn't count in that respect.

Think I'm definitely over thinking this. Thanks for your help.

Loyalandtrue77

Thanks for all the help.

I've actually decided to cancel my application and will pursue a branch based account where I can talk to someone locally, face to face. I'm not completely sure which of the provider's funding options of: 1.Utilize subscription 2. Transfer existing ISA  3. Both are the one for me.

I want to be sure I'm doing the right thing here.

Albermarle

and will pursue a branch based account where I can talk to someone locally, face to face. 

This will almost certainly mean you will get a poorer interest rate than you can get on line.

xylophone

will pursue a branch based account where I can talk to someone locally, 

You might find that you are not getting the best available interest rate.

https://www.thisismoney.co.uk/money/saving/article-1583864/Best-savings-rates-Isas-Cash-Isa-accounts-fixed-rate-Isas.html

I have one easy access cash ISA (BOS) that I renewed prior to the new tax year 22/23, and contributed the whole allowance on the 6th April 2022. I have decided to look around for a better rate of interest.

Are you saying that you have only one ISA account and it is held with BOS?

The account holds your full subscription for the current tax year (£20,000 presumably) AND

subscriptions for previous tax years?

This means that you cannot now make any further subscription to this or any other ISA for this tax year.

However, you can transfer part or all of the money in the account to another provider.

If you want to transfer the current year's subscription then you must transfer the whole £20,000.

You could also transfer the balance of the existing account to the provider accepting the transfer of this year's subscription.

Or you could transfer it in whole or in part elsewhere.

You just need to check that your existing provider permits partial transfers out and that any new provider accepts transfers in.

Your new provider must arrange the transfer.