Transferring Loyalty ISA into Fixed Cash ISA when used allowance already

caroline24_2

My Fixed Cash Isa matured into a Loyalty ISA with HSBC. I then added another 20k for this years tax allowance into the Loyalty ISA and I then wanted to transfer the Loyalty ISA into a Fixed Cash ISA. 
However, HSBC are saying that because I paid my allowance for this year into the Loyalty ISA, I am unable to open a new Fixed Cash ISA which the Loyalty ISA balance would be transferred into.
Is this correct? Did I make a mistake by adding the 20k into the Loyalty ISA when I should have opened a new Fixed Cash ISA and then transferred the money into that account? This doesn't seem fair and I am so confused!

clairec666

Some ISA providers only allow you to pay into one cash ISA per tax year with them. As you won't be adding any "new" money to any ISAs, you won't be breaking this rule, but presumably their system is doing a "computer says no" thing because they can see you've used this years allowance with them already. Try contacting HSBC about this - I had a similar situation with Principality and their customer support people sorted out an internal ISA transfer for me.

caroline24_2

Ah thanks so much. I did call HSBC customer services and they were pretty adamant that they couldn’t do it. So frustrating. I’m wondering if I open a Fixed Cash ISA with another provider maybe I can a transfer the money in that way? 🤷🏻‍♀️

clairec666

You could definitely open another fixed rate ISA elsewhere and transfer your HSBC loyalty ISA.

caroline24_2

I’m going to try that! Thank you so much for your help! 

badger09

caroline24_2 said:

I’m going to try that! Thank you so much for your help! 

HSBC have probably done you a favour as they are unlikely to be offering the best rate for a FRISA. High street banks rarely do, though currently Santander are offering 4.25% for a 1 year fix plus £50 gift voucher for a full ISA xfer of min £10k.  

Take a look at the Best ISAs thread for even better rates. 

caroline24_2

Just applied for the Santander FRISA! Fingers crossed and thanks for your help! 

badger09

caroline24_2 said:

Just applied for the Santander FRISA! Fingers crossed and thanks for your help! 

No problem. 

I actually split my existing ISA into 2 new ones, both over £10k, then opened a 1 year & 18 month fix with Santander. All done & dusted within a few days and codes for 2 x £50 vouchers received a few days later. 

I could have got slightly higher rates but am simplifying my affairs (no new providers) for my Executors. Hope yours is as smooth. 

caroline24_2

I got approved for my account with Santander within an hour! Now I have to complete the transfer form - my husband is adamant it’s not going to work. I’m looking forward to proving him wrong and choosing where to spend my voucher 🤣
I hope you enjoyed spending both of yours! 

badger09

caroline24_2 said:

I got approved for my account with Santander within an hour! Now I have to complete the transfer form - my husband is adamant it’s not going to work. I’m looking forward to proving him wrong and choosing where to spend my voucher 🤣
I hope you enjoyed spending both of yours! 

Not yet spent. But I’m not someone who needs instant gratification. As a child, I would have Easter egg left at Christmas & even now have at least 3 different unopened boxes of chocolate treats from Christmas. When I do open them, husband will eat them within a few days. So I bide my time😉

ericlered7

badger09 said:

caroline24_2 said:

Just applied for the Santander FRISA! Fingers crossed and thanks for your help! 

No problem. 

I actually split my existing ISA into 2 new ones, both over £10k, then opened a 1 year & 18 month fix with Santander. All done & dusted within a few days and codes for 2 x £50 vouchers received a few days later. 

I could have got slightly higher rates but am simplifying my affairs (no new providers) for my Executors. Hope yours is as smooth. 

Hi, does you mind me asking how you split your existing ISA into 2 new ones? I like what you have done here & I could potentially do this x 4 from my Zopa Smart ISA. Thanks