Banks accepting APS ISA allowance with monthly pay away option.

lohr500

Not sure if this is best posted here or in the finance section, but as it relates to bereavement, I thought I should post in this section first.

I am trying to find a Cash ISA provider (Easy access or Fixed) who will pay monthly interest away to a nominated account AND accept an APS ISA allowance to initially fund the ISA.

When I look on the Moneyfacts website, it appears that virtually every ISA provider with a decent interest rate DOES NOT accept APS Allowance funding.

Short of contacting each of the higher interest paying providers individually, I'm struggling to establish the best option. I have fired off a few emails this morning and I am awaiting responses.

Has anyone been in the same situation recently and found a high interest ISA provider that will accept APS funds AND allow monthly payment of interest away?

I did read a suggestion elsewhere that a way round this was to initially use the APS allowance to move the money to any Easy Access Cash ISA that would accept it and then do a regular ISA transfer to a more suitable provider. I guess I could do this, but I would prefer to avoid a two step process if possible.

Thanks in advance for any input.

Keep_pedalling

Trading212 would seem to fit the bill/

https://helpcentre.trading212.com/hc/en-us/articles/10012124553373-Can-I-transfer-an-APS-allowance-to-my-ISA

lohr500

Thanks for that @Keep_pedalling .

I just need to check if they will pay the interest away monthly or if mum would need to manually initiate a transfer each month.

As an interim measure until we can get a professional IFA to plan a strategy, we are just trying to avoid building excess capital. So better to get the tax free interest on her Cash ISAs paid away as income.
She and my dad were gifting from surplus income before his passing  and she will be fortunate enough to continue having a sizable surplus income which she would like to continue gifting.

poseidon1

lohr500 said:

Thanks for that @Keep_pedalling .

I just need to check if they will pay the interest away monthly or if mum would need to manually initiate a transfer each month.

As an interim measure until we can get a professional IFA to plan a strategy, we are just trying to avoid building excess capital. So better to get the tax free interest on her Cash ISAs paid away as income.
She and my dad were gifting from surplus income before his passing  and she will be fortunate enough to continue having a sizable surplus income which she would like to continue gifting.

Yes, appears they pay 3rd of each month-

https://helpcentre.trading212.com/hc/en-us/articles/28354646612253-Cash-ISA-Interest-Rate-Tracker#:~:text=Yes, you'll continue to,calendar day of each month.

lohr500

I think as you say, the interest is paid on the 3rd of the month, but there is no automatic way to get the interest paid into a a separate account.
It would be a case of manually requesting a withdrawal each month covering the interest earned over the preceding month.

lohr500

I had a good discussion with the Skipton Building Society Bereavement Team yesterday over the best way to consolidate the three Cash ISAs that my late father held into a single ISA in my mother's name.

One of his ISAs is with Skipton which gives a good starting point.

Skipton only offer a Legacy Cash ISA for receiving APS money.
When I said the interest rate was poor, the chap confirmed that once all the APS allowances had been added to the Legacy ISA, then the Legacy ISA is treated like a regular easy access Cash ISA.
And so can then be transferred to any other ISA product, subject to the usual ISA transfer rules.

The process seems pretty simple and Skipton have been really helpful in providing all the forms needed, including the APS Allowance request forms that they will send to the other two ISA providers to get confirmation of the individual APS values.

At the same time, the other two providers close my father's other Cash ISAs and send the funds to my mother's current account.

Once Skipton receive the APS Allowance forms back, they confirm the total permissible APS Allowance that can be paid into the new legacy Cash ISA , which will include the value that was previously held in my father's Skipton ISA.

Probate has been granted and we are just waiting for the documentation to arrive in the post. Once I have this, we can initiate the closure process for the three ISA's in my father's name so the funds become available for the new Legacy ISA. 

After the Legacy ISA id fully funded, I can then shop around for the best Cash ISA that pays monthly interest away.