Opening a new cash ISA and transferring

tallgoddess

I have a cash ISA which i have had for a number of years.  I have not put my full allowance into it this year and have about 3/4 of my allowance still to use for this financial year.   I want to open a cash ISA with a different provider that has a better rate of interest.  The provider says you can't transfer the contents of one ISA to the other.  Can i close the old one, withdraw the cash and put it into the new one in the same financial year?  

PeskyBlunder

tallgoddess said:

 The provider says you can't transfer the contents of one ISA to the other.  Can i close the old one, withdraw the cash and put it into the new one in the same financial year?  

That is not correct - who is the new provider? Whatever you do, you shouldn't withdraw the cash yourself as it will lose its ISA status and, furthermore, you will only be able to pay in the remaining 3/4 of this year's allowance.

tallgoddess

This is what the T+Cs of the new one i'm looking at says "You can’t add money by transferring in from an existing cash ISA account with another ISA manager"

PeskyBlunder

Sorry - my mistake. Yes, some don't allow transfers in but I think that tends to be less common than those that do. I would probably look at a provider that does allow transfers in instead. But don't withdraw the cash yourself.

Did you read the article on the main website:

https://www.moneysavingexpert.com/savings/best-cash-isa/

eskbanker

tallgoddess said:

I have a cash ISA which i have had for a number of years.  I have not put my full allowance into it this year and have about 3/4 of my allowance still to use for this financial year.   I want to open a cash ISA with a different provider that has a better rate of interest.  The provider says you can't transfer the contents of one ISA to the other.  Can i close the old one, withdraw the cash and put it into the new one in the same financial year?  

If the new provider doesn't allow inward transfers (as is their prerogative) then you could withdraw and redeposit, but only if the total amount you pay into the new ISA is less than about £15K (and you make no further deposits until 2025/26).