ISA transfer in same year as opened?

frugalfella

Hi all,
I want to open a flexible cash ISA to take advantage of the 3 month bonus rate(which then drops for the remainder of the year).
After the first 3 months can I then open another cash ISA and transfer the whole of my original ISA into my new one? (Assumes I find one that pays a better rate).
The idea is to take advantage of introductory offers through the year.
Many thanks.

eskbanker

Yes, the ISA scheme rules allow that, but make sure you're complying with the individual provider/product terms if you're hoping to do this while benefitting from bonuses.

frugalfella

All in the small print I suppose!!

Uriziel

Avoid Plum if you are thinking of them as they pay you the interest 1 month late to get you to stay with them. Providers who do the 3 month perk are not stupid and know that people want to move after the 3 month period so make sure you are understanding fully what they are going to be doing and whether you can actually even get the interest plus bonus if you leave.

masonic

The Plum ISA is not flexible, so wouldn't fit anyway.

However I'm not sure how important flexibility is, as withdrawing would limit the benefit of the offer. If intending to go around the providers offering short term bonuses over the year, Plum is a good place to start, as at Plum the bonus rate only applies to new money, whereas elsewhere one can transfer in to a bonus rate.

Regarding the last month's interest, this is an annoyance as it requires a second transfer once paid, but if that's too much hassle it could be withdrawn instead.