Switching cash ISA (nationwide ,v13 to v14)

Bod_1234

I'm with nationwide and have a cash ISA triple access (v13) earning 1%.  I have opened a v14 that earns a slightly better 1.35%

I get easily confused by cash ISAs and the rules behind them.  Can I just shift the balance from the old one to the new one and start earning the extra interest?

Is there any reason why I shouldn't do this, and just close down the old one?

Thanks.

jimjames

No reason but you can't do it yourself, you need to transfer or you'll lose the ISA status

Rodders53

Nationwide ISAs state:

You can only have one 'active' cash ISA every year. This means, for example, that you can't open multiple cash ISAs in a single tax year, and benefit from the tax-free savings allowance in each of these cash ISAs.
As the Nationwide cash ISA is a portfolio ISA you can hold more than one Nationwide cash ISA product within your portfolio. You can then split your allowance between the products.

You should be able to (or ask ask Nationwide to) transfer between the ISAs without any loss of ISA status within online banking.  https://www.nationwide.co.uk/savings/help/manage-your-isa/

Note that you can get 1.5% with v15 of the non-ISA triple access online saver.

Do transfer from ISA to ISA and not via your current (or another) savings account though.  Double-check with Nationwide if uncertain.

Olinda99

when you open the new account then provided you are logged on it asks you how you want to fund the new account and list all your existing accounts

Simple choose the old ISA and put the full balance as the amount it will close the old one.

Bod_1234

Olinda99 said:

when you open the new account then provided you are logged on it asks you how you want to fund the new account and list all your existing accounts

Simple choose the old ISA and put the full balance as the amount it will close the old one.

Actually this isn't what happens with nationwide, they ask if you have an existing ISA with someone else.  If you say no, you don't get any transfer in options.  This doesn't help on my understanding of the tax free status.

I have  both ISA open, so can I just move cash from the old to the new without losing tax free status?

refluxer

Bod_1234 said:

I have  both ISA open, so can I just move cash from the old to the new without losing tax free status?

I wouldn't risk doing it yourself - get in touch with the Nationwide and get them to sort it to make sure it's transferred properly.

isasmurf

Bod_1234 said:

I have  both ISA open, so can I just move cash from the old to the new without losing tax free status?

The answer is in the link Rodders53 gave.

Moving money between your Nationwide cash ISA accounts

When you open one or more cash ISA accounts with us, they form part of a portfolio cash ISA. This means you can move money between the accounts in your ISA portfolio without it counting towards your annual ISA allowance.

alinkliter

Wouldn't it be simpler, fairer and make more sense if the Nationwide just increased the rate on the old ISA to the same as the new one? Others do this such as Ford.. The interest rate is supposed to be variable but how many customers get left in the old ISA  earning less interest without knowing about the new one?

MA260

Nationwide have announced the new interest rates today. They have updated the new issue issue to 1.50% from today. They have increased the rates on the other issues by 0.50% but they are still lagging this rate by a long way with some issues only increasing to 0.80%.  Also they do not have any Easy Access ISA or ISA bonds on sale now. They seem to be reluctant to have bonds in ISAs as probably wary about customers being able to close with penalty and reopen at higher rate.