Can I transfer a partial amount from a matured ISA to a new one?

Diamonte_Sandal

Hi all, newbie here. I've been reading so much lately and using the info on ISAs that my head is spinning slightly. I need to make a decision asap and wondered if you could clarify something for me?

I have a recently (end Sept) matured fixed ISA with Lloyds containing around £53k (at 5.37%, sob!). I will shortly be moving £16k of that into a pension (whilst consolidating some old pensions into a new one), leaving around £37k to be reinvested in a new ISA.

I have been looking at the options and I think I am going to go for the Natwest 1yr fixed ISA at 4.2%. I need to open this by 23rd Oct then finalise any further deposits by 11th Nov. I cannot add any further deposits during the term.

The information on transferring in from another ISA says this: "an ISA transfer from any previous tax year's allowance won't count towards your annual allowance for the current tax year. If you want to transfer any money you've saved in an ISA during the current tax year, you have to transfer the full amount - you can't just transfer part of it."

Am I correct in reading this as meaning that I would not be able to specify £37k for transfer and leave the £16k in the ISA to move to the pension later? 
In an ideal world the pension amount would go out first, but I need to open the NW ISA in the next couple of days.
I guess I could transfer out £1000 to open the account (minimum deposit £1k) by putting it in my current account first (I know I'd lose the tax free element of that amount, but I won't be anywhere near £20k allowance for this tax year anyway). I could then do the pension transfer and finally transfer the remainder as a full amount to NW. 
Alternatively, should I firstly move the £16k to my Savings account (easy access) temporarily on its way to the pension, leaving the 37k in the ISA to open the NW account?

Does that make sense? Sorry for the ramble and thank you for your help.

anniecave

If your current ISA has matured and you are wanting to move the money in a split way to different places then read the information on transferring out, not the information on transferring in.   You should be a able to do what you mentioned in the "Alternatively... section" as the most logical. 

The information on transferring in sounds like the standard rules on transferring (there are specific rules about transferring part year amounts) and declarations have to be made on transfers in because there is a difference between new funds (for a new amount for the current tax year allowance) and transferred in funds for balances invested in previous years. 

Ch1ll1Phlakes

Diamonte_Sandal said:

Hi all, newbie here. I've been reading so much lately and using the info on ISAs that my head is spinning slightly. I need to make a decision asap and wondered if you could clarify something for me?

I have a recently (end Sept) matured fixed ISA with Lloyds containing around £53k (at 5.37%, sob!). I will shortly be moving £16k of that into a pension (whilst consolidating some old pensions into a new one), leaving around £37k to be reinvested in a new ISA.

I have been looking at the options and I think I am going to go for the Natwest 1yr fixed ISA at 4.2%. I need to open this by 23rd Oct then finalise any further deposits by 11th Nov. I cannot add any further deposits during the term.

The information on transferring in from another ISA says this: "an ISA transfer from any previous tax year's allowance won't count towards your annual allowance for the current tax year. If you want to transfer any money you've saved in an ISA during the current tax year, you have to transfer the full amount - you can't just transfer part of it."

Am I correct in reading this as meaning that I would not be able to specify £37k for transfer and leave the £16k in the ISA to move to the pension later? 
In an ideal world the pension amount would go out first, but I need to open the NW ISA in the next couple of days.
I guess I could transfer out £1000 to open the account (minimum deposit £1k) by putting it in my current account first (I know I'd lose the tax free element of that amount, but I won't be anywhere near £20k allowance for this tax year anyway). I could then do the pension transfer and finally transfer the remainder as a full amount to NW. 
Alternatively, should I firstly move the £16k to my Savings account (easy access) temporarily on its way to the pension, leaving the 37k in the ISA to open the NW account?

Does that make sense? Sorry for the ramble and thank you for your help.

Ok. Hopefully the following makes sense.

You say your fixed rate ISA with Lloyds matured in September after earning 5.37%. Based on the interest rate and the fact that most ISA fixes are a year or longer, this ISA is probably from a previous tax-year. It's when the money is added to the ISA, not when it matures, changes or is transferred.

As it's previous tax-year money, the second part of the information doesn't apply i.e If you want to transfer any money you've saved in an ISA during the current tax year, you have to transfer the full amount does not apply.

This means you should be able to transfer part of the funds in the matured ISA to your new ISA with NatWest. Though the NatWest website is poor at providing this information there should be no issues as long as you follow their ISA transfer procedure.

EDIT: I checked through NatWest's chat service how an ISA transfer would work and it confirms that you will be able to do a partial transfer into them, either at account opening or before the last transfer request date. See the following.

singhini

As pointed out by others, it sounds like your Lloyds ISA is old/previous ISA money and not this years ISA money (2025/2026 year). So, as its old ISA money, you can transfer part of it i.e. yes you can transfer £37k and leave £16k still with Lloyds.

You need to open the 4.2% NatWest ISA first 
Then In the app, choose the newly opened 4.2% ISA and tap “Move ISA from elsewhere” into this ISA
NB: if you going to use Online Banking and not the app, instead select the newly opened 4.2% ISA and go to “View account details.” Then choose “Transfer in savings from another ISA to us” and select “Find out more”

The questions it asks are the usual basic ones, like name, email and you have to give the sort code and account number of the new NatWest ISA aswell as the details of the old Lloyd's ISA. it will also ask you 
Please confirm the type of ISA you want to transfer -----> you click Cash-ISA.
It then asks if you want to transfer all the money and close the old ISA or transfer some money -----> You choose Some money.
It then asks Does the ISA your transferring from have a notice period ----> you tick NO (bcoz the Lloyds ISA has already matured).
You then tick the confirmation/declaration box 
That's it!

NB: It can take upto 14 days for the Lloyds ISA to transfer into NatWest

flaneurs_lobster

There's mention above about giving NatWest details of the old matured Lloyds ISA. 

Will the funds now more likely be in a Lloyds Easy Access ISA maturity product (earning not much interest)?