ISA close down and open query

Unistore89

Hi everyone,

Hoping to get some good advice from this forum.

So I have a Cash ISA with nationwide (I call it OLD ISA), which was paying low interest. I decided to close it and open another Cash ISA (I call it New ISA) with Nationwide again with a better interest rate. I transferred all the money from the OLD ISA to the New ISA.

I have not made any deposits for over 3 years in any ISA or savings account. I also have not used my current yearly allowance of £20,000.
Am I allowed to open another NEW CASH ISA with another bank or building society (e.g. NatWest, Lloyds, HSBC etc) this year?
just want to ensure I am within ISA rules.

Thanks in advance!

refluxer

I've never done an internal transfer of ISA funds like that myself but, if the money went directly from your old ISA account and into your new ISA account (and not via a current or other savings account) then I think you should be OK ?

Hopefully another Nationwide member who's done something similar can confirm but if not, you could always check with the Nationwide to get the official line.

Provided that does count as an ISA transfer, then you'll be free to make use of the current tax year's allowance with any provider you like.

Albermarle

If you opened the new ISA first, and requested the New ISA to transfer in the funds from the old ISA, then the fact it is with the same provider, makes no difference. You can still open another new ISA and add money to it.
The slight worry is that you way you phrased this .
. I decided to close it and open another Cash ISA (I call it New ISA) with Nationwide again with a better interest rate. I transferred all the money from the OLD ISA to the New ISA.

Can you say exactly how you organised the transfer?

masonic

Most providers show what your remaining ISA allowance for the tax year is. If this shows as £20,000 at Nationwide, then you are ok. I believe Nationwide is a split-ISA provider, so moving money directly between ISAs should not affect your allowance or the money's tax status.

isasmurf

Albermarle said:

If you opened the new ISA first, and requested the New ISA to transfer in the funds from the old ISA, then the fact it is with the same provider, makes no difference. You can still open another new ISA and add money to it.
The slight worry is that you way you phrased this .
. I decided to close it and open another Cash ISA (I call it New ISA) with Nationwide again with a better interest rate. I transferred all the money from the OLD ISA to the New ISA.

Can you say exactly how you organised the transfer?

With Nationwide that is not an issue. As they are a flexible and portfolio ISA provider you take any money out of any of their ISA accounts and put it back into any of their ISA accounts within the same tax year without affecting your allowance including after you have closed (not transferred) all accounts in the ISA (as the ISA remains active with an empty portfolio). Also as a portfolio ISA, you can move money between Nationwide ISA accounts yourself without it affecting your allowance as you're moving money within the ISA, not between ISAs.

Unistore89

Albermarle said:

If you opened the new ISA first, and requested the New ISA to transfer in the funds from the old ISA, then the fact it is with the same provider, makes no difference. You can still open another new ISA and add money to it.
The slight worry is that you way you phrased this .
. I decided to close it and open another Cash ISA (I call it New ISA) with Nationwide again with a better interest rate. I transferred all the money from the OLD ISA to the New ISA.

Can you say exactly how you organised the transfer?

I had the old ISA account.
I then opened the new ISA account.
I transferred all funds from old to new.
I closed the old account.

Hope that makes sense.