Moving part of ISA for better rate

Tarquinius

Hi

I wonder if anyone could offer me advice about moving my ISA to another provider please?

A few months ago (during this current tax year) I opened a Cash ISA with the Post Office and put the cash into 3 different ISA products - Easy Access,  1 year fix and 2 year fix.

However the Easy Access part is now underperforming market rates (its paying 4.4%, but market leaders are paying 5%).

So I am wondering whether it is possible to move the Easy Access balance across to a different ISA provider,   whilst leaving the fixed rate ISA products with the Post Office?

Or am I effectively stuck with the Post Office because I am committed to the fixed rate products I have with them?

Thank you in advance

[Deleted User]

Hi,

does Post Office allow a partial transfer, then you need to find a provider that accepts a partial transfer.

ColdIron

It's not a partial transfer problem, the problem would be that the OP would have subscribed to more than 1 ISA Manager for an ISA of the same type in the financial year

[Deleted User]

Hi,

ColdIron said:

It's not a partial transfer problem, the problem would be that the OP would have subscribed to more than 1 ISA Manager for an ISA of the same type in the financial year

but he's not putting new money in.

refluxer

The Post Office does seem to offer a 'portfolio' approach whereby you can spread the current tax year's allowance over different types of cash ISA, so I guess the question is - can the OP transfer the Easy Access ISA portion away to an alternative provider, while leaving the fixed rate ISAs with the Post Office, when the current year's ISA allowance is spread among them ? 

As the latest issue of the Post Office's Easy Access ISA is paying 4.90% (which isn't too far under the best available elsewhere) then I suspect the easiest option would be to arrange an internal transfer to that one, as this would ensure that the current tax year's allowance remains together in the same place (with the one provider).

refluxer

frugalmacdugal said:

Hi,

ColdIron said:

It's not a partial transfer problem, the problem would be that the OP would have subscribed to more than 1 ISA Manager for an ISA of the same type in the financial year

but he's not putting new money in.

That might be the case but if the easy access portion was transferred away, then the current tax year's allowance would end up spread over 2 different cash ISA providers which isn't allowed under the current ISA rules. The 'portfolio' approach only allows the current tax year's ISA allowance to be spread over different cash ISAs held with the same provider.

It's definitely an interesting question and one I've not seen debated on here before.

ColdIron

frugalmacdugal said:

Hi,

ColdIron said:

It's not a partial transfer problem, the problem would be that the OP would have subscribed to more than 1 ISA Manager for an ISA of the same type in the financial year

but he's not putting new money in.

It is new money

Tarquinius said:

A few months ago (during this current tax year) I opened a Cash ISA with the Post Office and put the cash into 3 different ISA products - Easy Access,  1 year fix and 2 year fix.

So at the end of the year HMRC would see 2 subscriptions. It's no different to subscribing to one ISA and transferring part of it to another
It has been discussed here a few times in the past and not allowed, although it will be from April 2024

Reed_Richards

Wait until April 6th 2024 and you can do a partial ISA transfer.  Before then, the only partial ISA transfer you can do, I presume, is from one Post Office ISA to another one.

[Deleted User]

Hi,

thanks ColdIron and refluxer, understand now.