ISA transfer questions

esselle_aitch

Hi, first timer on here looking for some advice and guidance as I’m currently going round in circles. Bear with me, it could be a long one…

In the current tax year I’ve opened a Monument easy access cash ISA and have transferred in money from previous tax years which is slightly over the £85k threshold. I’ve not subscribed any new money into any cash ISA this tax year yet. Last year I opened and subscribed into a Kent Reliance easy access cash ISA (current interest rate 4%). 

I wanted to open a new KR cash ISA at a better interest rate (4.51%) by doing a partial transfer from Monument to take that one down to under £85 plus extra as I’m planning on subscribing into that cash ISA this year (when I have the funds) and also by transferring the full amount from the other KR ISA I already have. I started filing out the online application but Monument doesn’t come up as one of the providers in the list for transfers so it seems the only option I have is to print a copy of their transfer form and send by post. Unfortunately I don’t have access to a printer though so I’ve now scrapped that idea. 

My next choice is to open a Charter Savings Bank easy access ISA (4.59%) and to do the same transfers as outlined above. However I’m now stuck on how to answer some of their questions on the online form. The first question asks if I’ve already opened a cash ISA with another provider this tax year. If I answer ‘YES’ as I’ve opened the Monument one (but not subscribed any ‘new’ money yet) it then gives some blurb about how under HMRC regs I’m unable to subscribe with them if I’ve already subscribed to another provider so if I’m transferring current subscription it has to be done in full. It then asks what type of ISA I want to transfer so it seems to have made the assumption that by opening an ISA I’ve already subscribed which I haven’t! So I’m not sure if I should be answering Yes or No as both seem wrong!

I then have to agree to the ISA declaration which states that ‘I apply to subscribe for a cash ISA for the tax year 2025/2026 and each subsequent year until further notice’. And also to declare that ‘I have not subscribed and will not subscribe to another cash ISA in the same tax year that I subscribe to this cash ISA’. I have a few issues with these statements as I’m not planning to subscribe to this cash ISA at all (at least not in this current tax year), I want to add money to the Monument one, and this is purely to transfer previous subscriptions into another ISA with a better interest rate. 

I now feel as though I have to start all over again and look for another ISA provider which allows me to do the above transfers but seem to be running out of choices (with better interest rates than I’m currently getting). My main concern is having over £85k in the Monument ISA especially as I want to start paying new money in soon. 

Thanks so much for your patience in reading all this and TIA for your help!

masonic

HMRC do not consider that you have opened a cash ISA unless and until you have paid money into it. So you can answer "no" to the relevant question. Applying to subscribe to an ISA does not mean that you have subscribed, or must subscribe, to that ISA. It merely allows the provider to accept your money if you choose to pay any in.

esselle_aitch

Thanks Masonic! It feels strange to answer ‘No’ when I have opened an ISA this year but I think I understand what I need to do now. It’s a shame they can’t make that question more specific to ask if you’ve subscribed to a cash ISA this year instead of opening one but perhaps there’s a reason why they can’t ask it in that way which I haven’t thought of. Thanks for your help, much appreciated!