ISA transfer and opening

Adly812

I have a fixed rate cash isa with kent reliance and I have paid into it this tax year £19k. It is due to mature in December. I’m aware that the new rules with Isas suggest you can open multiple cash isas in a tax year, provided you stay within the limit of funding.  Kent reliance is a company who don’t allow you to pay into more than one tax isa a year as they never adopted this new rule. However they said I’m allowed to transfer to another provider and close this account, if I transfer the full balance and this years amount I paid in. 

Ideally I’d like to do this for a higher rate once it matures next month, but I’m so confused as I will need to open up another cash isa (trading 212 easy access is my preference) first, and I’ll need to deposit a minimum amount of £1 to open the account and then request the transfer the full balance of my kent reliance, and my previous years amounts held in the account, to Trading 212, and close my kent reliance. 

But wouldn’t that mean I’m paying into a cash isa account whilst the Kent reliance is open, as if i want to do this, all banks have a minimum opening balance Kent reliance says I can do this but I mustn’t fund it until after the transfer, yet how is this possible as I can’t open it without a minimum amount, be it £1. 

So confused, as I want to transfer out after maturity but I don’t know the steps to do this without an issue paying into another cash isa first to initiate the transfer ? 

Rodders53

Adly812 said:

I will need to open up another cash isa (trading 212 easy access is my preference) first, and I’ll need to deposit a minimum amount of £1 to open the account and then request the transfer the full balance of my kent reliance, and my previous years amounts held in the account, to Trading 212, and close my kent reliance. 

Not necessary in my experience with other ISA transfers... 
One opens the new account with a 'transfer' in of an ISA only. 
Normally with fixed rate one asks for the transfer to be done at the fixed rate maturity date (or you agree to take a hit with an early closure penalty).

Recently did two maturing ISA transfers from Santander to United Trust Bank with zero additional funds from this tax year (they had a minimum of £5k deposit, too).

Even so, Kent can't stop you opening another Cash ISA this year with your remaining £1k allowance with another provider.

Adly812

Thank you. I just  thought that I’d have to open the account, initially fund it and then choose a transfer option to bring across my money from Kent Reliance. If I can open Trading 212 with a transfer option then that would work, as technically I won’t be paying into another cash isa account.

Kent Reliance stats that you can only pay into one cash isa account and if you have already paid into them, which I have I’m not allowed to pay into another cash isa this year, they are still practicing the old rules. 

Yet having spoken to them on the phone they said I can request to transfer my account to another provider and use my remaining balance left to pay into them, but only once the transfer is completed. 

t0rt0ise

Adly812 said:

Thank you. I just  thought that I’d have to open the account, initially fund it and then choose a transfer option to bring across my money from Kent Reliance. If I can open Trading 212 with a transfer option then that would work, as technically I won’t be paying into another cash isa account.

Kent Reliance stats that you can only pay into one cash isa account and if you have already paid into them, which I have I’m not allowed to pay into another cash isa this year, they are still practicing the old rules. 

Yet having spoken to them on the phone they said I can request to transfer my account to another provider and use my remaining balance left to pay into them, but only once the transfer is completed. 

Kent Reliance are wrong. If you open another ISA with a different bank and fund it with the rest of your allowance, they won't even know.

Adly812

Possibly, but if I them request to transfer my Kent Reliance account to the new ISA surely they will check ? I hope I can open the trading 212 without adding new money into it and request the transfer across. Kent reliance said I’m allowed to do this and withdraw all funds and move to another provider, I just must not pay into them beforehand as it’s against their terms and conditions.

frustrating that parliament has allowed individuals to open more than one cash isa, yet some companies are not adopting the new rules, it’s so confusing too as they are not even giving clear advice in doubts.