Moving Money Between Two Virgin "flex" ISAs

Qyburn

Lady Q has an "Exclusive Flexi ISA2" paying 4.76%.  Her fixed ISA has recently matured and turned into an "Exclusive Flexi ISA3" paying 4.51%.

Is there any reason she can't use the "move money" function to transfer the balance from the ISA3 to the better paying ISA2?  I'm just a bit worried it would screw up ISA status or allowances or something.

masonic

There was an incident a few years ago where a forum regular was advised to do something like this incorrectly by a member of BS staff and it backfired (it turned out only £20k could be moved, which she interpreted as some sort of single transaction limit, but then could not transfer any more, and it eat up her allowance IIRC). So a cautious approach is recommended. Will it let her use the standard transfer process for external ISAs? That would be the safer approach.

Qyburn

Thanks, it probably would. That was how she (and I) set up the fixed ISAs, opening new account and funding by a partial transfer from the easy access - the same ISA2 that we want it to go back into.

slinger2

I'd try and find out in advance. Some providers used to treat all your ISAs with them as a single ISA officially, a so called "portfolio" ISA. So moving from one ISA to another was just an internal movement within what was officially a single ISA and worked easily.

However if the two ISAs are reported to the HMRC as two separate ISAs then I suppose the movement of funds needs to be done by a "transfer". Whether "move money" function would do it as a transfer I wouldn't know.

Qyburn

 Masonic's comment suggests the "move money" was treated as withdrawal from one and new money into the other. Obviously not what's wanted.

MDMD

On the VM ISA transfer page it lists an option For transferring between them

https://uk.virginmoney.com/savings/learn/isas/transfer-your-isa/get-started/

There’s an online form you can fill in

xylophone

Lady Q has an "Exclusive Flexi ISA2" paying 4.76%.  Her fixed ISA has recently matured and turned into an "Exclusive Flexi ISA3" paying 4.51%.

Will decrease to 4.51% on 24 Feb?

Qyburn

Probably not worth worrying about then.