Barclays 1 & 2 year flexible fixed rate ISAs - one of each?

TiVo_Lad

eskbanker said:

I think that all comes across as more complicated than it needs to be, but worth bearing in mind that if you pay £1200 of new money into X or Y with plenty of old money in them already, then you can effectively transfer out as much as you like, because you wouldn't generally be moving £1000 of the £1200 as such, you're simply moving £1000, which can be deemed (not necessarily expressly) to be prior year money.  Your point does apply to the new ISA Z though....

If you've put the new money into X or Y, you'll need to make a statement on the transfer form whether you're moving old money or new money so the rule about not moving only partial amounts of new money applies.

If you put the £1,200 into Account X the new balance would be £11,200. If you later wanted to move £5,000, you could move £5,000 of old money or £3,800 of old money and the £1,200 of new money. If you wanted to move £11,000 however, you could ONLY move £9,800 of old money and the £1,200 of new money. On the face of it, this might not make a practical difference, but it's relevant for the statement that you have to make on the transfer form.

I suspect when ISAs were first invented, they didn't think long term so the prospect of people have many different ISAs with old and new money either didn't seem realistic, or only an edge case. But, if you've been using your ISA allowance each year, you could now have a tidy sum and then the FSCS protections have an effect causing people to split up their pots.

howryoo

Thanks @TiVo_Lad

So if you were me, already having their 1 yr account subscribed with current year funds, you'd be comfortable to also apply for their 2 yr ISA (with the intention of transferring in prior year external funds), despite during the application process essentially forcing you to declare you're applying for the 2022-23 tax year?

Comfortable in terms of not having HMRC ramifications.

eskbanker

TiVo_Lad said:

eskbanker said:

I think that all comes across as more complicated than it needs to be, but worth bearing in mind that if you pay £1200 of new money into X or Y with plenty of old money in them already, then you can effectively transfer out as much as you like, because you wouldn't generally be moving £1000 of the £1200 as such, you're simply moving £1000, which can be deemed (not necessarily expressly) to be prior year money.  Your point does apply to the new ISA Z though....

If you've put the new money into X or Y, you'll need to make a statement on the transfer form whether you're moving old money or new money so the rule about not moving only partial amounts of new money applies.

If you put the £1,200 into Account X the new balance would be £11,200. If you later wanted to move £5,000, you could move £5,000 of old money or £3,800 of old money and the £1,200 of new money. If you wanted to move £11,000 however, you could ONLY move £9,800 of old money and the £1,200 of new money. On the face of it, this might not make a practical difference, but it's relevant for the statement that you have to make on the transfer form.

I suspect when ISAs were first invented, they didn't think long term so the prospect of people have many different ISAs with old and new money either didn't seem realistic, or only an edge case. But, if you've been using your ISA allowance each year, you could now have a tidy sum and then the FSCS protections have an effect causing people to split up their pots.

Yes, I wasn't disputing the factual correctness of your post, just questioning the value of devoting so much text to defining an improbable niche problem that has such an easy and obvious solution - I genuinely can't think of any reason why someone would specifically want to try to subdivide current year money in the scenario where they could simply access prior year funds (and this would become even less likely as old money outweighs new money more significantly for serial depositors)!

TiVo_Lad

howryoo said:

Thanks @TiVo_Lad

So if you were me, already having their 1 yr account subscribed with current year funds, you'd be comfortable to also apply for their 2 yr ISA (with the intention of transferring in prior year external funds), despite during the application process essentially forcing you to declare you're applying for the 2022-23 tax year?

Comfortable in terms of not having HMRC ramifications.

Yes because you'll not be subscribing to that ISA (i.e. putting in new money), you're merely opening one and transferring old money into it. That's allowed by the ISA rules (and mentioned in the Barclays Terms whereby you can have a zero balance if you're transferring in).

TiVo_Lad

eskbanker said:

Yes, I wasn't disputing the factual correctness of your post, just questioning the value of devoting so much text to defining an improbable niche problem that has such an easy and obvious solution - I genuinely can't think of any reason why someone would specifically want to try to subdivide current year money in the scenario where they could simply access prior year funds (and this would become even less likely as old money outweighs new money more significantly for serial depositors)!

You are fortunate to have got your head around the ISA rules, but not everyone has, so an explanation helps other people who are not as fortunate as you.

BillTee

AlwaysLearnin said:

andyhicks88 said:

I don't see how this is possible and people are doing it because when i went to open one yesterday it was making me fund the account as part of the process, so if you open two then you need to fund two....which isn't allowed is it?/

They specifically say you can open with a zero balance if transfering in

https://www.barclays.co.uk/savings/isas/1-year-flexible-cash-isa/

Tried it and they won't let me.  Say I don't have an ISA available to transfer.  How do they know? It's with another bank. Say I have go to a branch - none in my area. Very frustrating

soulsaver

BillTee said:

AlwaysLearnin said:

andyhicks88 said:

I don't see how this is possible and people are doing it because when i went to open one yesterday it was making me fund the account as part of the process, so if you open two then you need to fund two....which isn't allowed is it?/

They specifically say you can open with a zero balance if transfering in

https://www.barclays.co.uk/savings/isas/1-year-flexible-cash-isa/

Tried it and they won't let me.  Say I don't have an ISA available to transfer.  How do they know? It's with another bank. Say I have go to a branch - none in my area. Very frustrating

Have you tried online? In the app, it didn't appear to have an option to open it without funding immediately, but there is an option for transfers-in online.