Moving cash from one ISA to another .. transfers in not allowed

aurion22

I have read that it's important to TRANSFER from one cash ISA to another so that the money doesn't lose its tax-free status. I want to move some cash from one ISA to another with a higher interest rate which, unfortunately, doesn't allow transfers in. Where is the problem with simply withdrawing the cash to my current account and then paying it into the ISA with a higher interest rate? I will never be in a position to pay in £20K in a year so can't see a problem but thought I'd ask here just in case there's something I've missed.
Thanks.
Loretta

badger09

aurion22 said:

I have read that it's important to TRANSFER from one cash ISA to another so that the money doesn't lose its tax-free status. I want to move some cash from one ISA to another with a higher interest rate which, unfortunately, doesn't allow transfers in. Where is the problem with simply withdrawing the cash to my current account and then paying it into the ISA with a higher interest rate? I will never be in a position to pay in £20K in a year so can't see a problem but thought I'd ask here just in case there's something I've missed.
Thanks.
Loretta

BIB 
In that case, there is absolutely no problem doing what you suggest. 

However, if you are in the fortunate position to be able to add £20k new money to an ISA each year, transferring, using the new ISA provider’s process, means you don’t use up any of that £20k annual allowance. 

Ultrasonic

How much money is in the current ISA and how much was paid into it this financial year?

The sum of the current balance and however much you paid in this financial year needs to be at most £20k for what you propose to be OK.

Edit: oh, and any further amount you'd want to pay in this financial year added to the above total couldn't exceed £20k.

Ultrasonic

Also note that the current highest interest rate instant access ISA does allow transfers in anyway (5.07% varuable with Trading 212 if you're a new customer). What account are you thinking of moving to?

clairec666

aurion22 said:

I have read that it's important to TRANSFER from one cash ISA to another so that the money doesn't lose its tax-free status. I want to move some cash from one ISA to another with a higher interest rate which, unfortunately, doesn't allow transfers in. Where is the problem with simply withdrawing the cash to my current account and then paying it into the ISA with a higher interest rate? I will never be in a position to pay in £20K in a year so can't see a problem but thought I'd ask here just in case there's something I've missed.
Thanks.
Loretta

Yes you can do that, up to £20000.

If your existing ISA is a flexible ISA, you could leave the account open and put the money back in later in the year (just in case you suddenly have a windfall!)

aurion22

Ultrasonic said:

Also note that the current highest interest rate instant access ISA does allow transfers in anyway (5.07% varuable with Trading 212 if you're a new customer). What account are you thinking of moving to?

I moved away from T212 when I realised that they keep their fund with Barclays.
I'm moving some cash to an existing Marcus ISA.

Ultrasonic

aurion22 said:

Ultrasonic said:

Also note that the current highest interest rate instant access ISA does allow transfers in anyway (5.07% varuable with Trading 212 if you're a new customer). What account are you thinking of moving to?

I moved away from T212 when I realised that they keep their fund with Barclays.
I'm moving some cash to an existing Marcus ISA.

For info. the money is split across multiple places. I have this account and right now it says 37% of my money is with Barclays.

If you posted full details of your situation and requirements it may be that someone could suggest a better option for you. 

aurion22

Ultrasonic said:

aurion22 said:

Ultrasonic said:

Also note that the current highest interest rate instant access ISA does allow transfers in anyway (5.07% varuable with Trading 212 if you're a new customer). What account are you thinking of moving to?

I moved away from T212 when I realised that they keep their fund with Barclays.
I'm moving some cash to an existing Marcus ISA.

For info. the money is split across multiple places. I have this account and right now it says 37% of my money is with Barclays.

If you posted full details of your situation and requirements it may be that someone could suggest a better option for you. 

Thanks. I have been given the information I needed. 
:-)