Splitting previous year's Cash ISA into two by transferring to two different providers

info_maniac

I am looking to transfer out my easy access cash ISA from the existing provider to new fixed term cash ISA(s). I haven't opened the destination account(s) yet so am open to different options available at the moment.

Ideally I would want to split the amount I have in the present easy access ISA into two halves and park it in two different fixed term ISAs - probably a mix of 1-year fixed and 2-year fixed cash ISAs. I can split it 3 ways to 1, 2 & 3 year fixes with different providers (to create an ISA ladder with accounts maturing at different times), but I think that will cause a lot of confusion transferring out.

However, I am unclear about these two points:

1. How can I open one or more than one fixed term ISA(s) only to park previous year's ISA funds in them (partial transfer from existing ISA) and not adding any new money? Most of the ISA accounts I have seen have the requirement of an opening balance.
2. What is the best way to achieve the two way split by doing two partial transfer outs from my existing ISA. My present provider has given me conflicting information when I called them on two different occassions. First time, I was told that I can only do "one ISA transfer out" (full of partial) in a tax year. Second time, I was told that I can do two subsequent partial transfer outs, I just need to submit two different transfer out forms to the two new provides.



Any advice will be very helpful. Thank you!

eskbanker

info_maniac said:

1. How can I open one or more than one fixed term ISA(s) only to park previous year's ISA funds in them (partial transfer from existing ISA) and not adding any new money? Most of the ISA accounts I have seen have the requirement of an opening balance.

The transferred funds should effectively count as the opening balance.

info_maniac said:

2. What is the best way to achieve the two way split by doing two partial transfer outs from my existing ISA. My present provider has given me conflicting information when I called them on two different occassions. First time, I was told that I can only do "one ISA transfer out" (full of partial) in a tax year. Second time, I was told that I can do two subsequent partial transfer outs, I just need to submit two different transfer out forms to the two new provides.

There's nothing in the ISA rules that prevents multiple partial transfers, but you're in the hands of your existing provider - who are they and what do their Ts & Cs state?

info_maniac

eskbanker said:

The transferred funds should effectively count as the opening balance.

Ah..so this means that I don't have to deposit any "new" money at the time of account opening to satisfy the minimum opening balance requirements?

eskbanker said:

There's nothing in the ISA rules that prevents multiple partial transfers, but you're in the hands of your existing provider - who are they and what do their Ts & Cs state?

In the Ts & Cs I can see partial transfer outs are allowed, but I want to do multiple partial transfer outs to different providers and that's where they have given me conflicting information.

xylophone

You have an easy access ISA with XYZ Bank holding contributions from previous tax years.

You approach new provider A & B Bank and request them to arrange a  transfer of £......from the XYZ ISA to their Fixed Rate ISA.

You approach new provider C&D Bank and request them to arrange a transfer of £...... from the XYZ ISA to their Fixed Rate ISA.

It seems simple enough?

sparkiemalarkie

Do you want to keep the instant access ISA open?
If not I would personally do one transfer at a time over a period of a week or so.
The last transfer would then give instructions to close your instant access ISA and move across any interest owing from that account.

sx