Santander ISA matured

PoGee

My santander isa matured at the start of May. I opened a new isa online and transferred the money. They tell me that I should have 'filled out a form' with them and as I didn't, it's classed as new money. I asked for the transfer to be reversed but they they this isn't possible. Is it new money and if it is, can the transfer definitely not be reversed?

Aylesbury_Duck

They are right if you took the money out of the ISA wrapper. Now it's treated as new money into this year's ISA allowance.

NanookOfTheNorth

ISA transfers are done by the new account provider so if for example you opened a new ISA with Nationwide Building Society then you would tell the Nationwide to do the transfer from Santander.

If you withdrew the Santander ISA money yourself (ie to a current account) then it would be treated as new money when you added to to the new ISA account. I dont think you can reverse that.

PoGee

I transferred from one Santander ISA to a new Santander one. I didn't take money out of matured ISA and transfer to current account. It was a direct transfer from on ISA to another (both santander).

wmb194

https://forums.moneysavingexpert.com/discussion/comment/82025182#Comment_82025182

What was the sequence of events? Was it first transferred to a current account or taxable savings account?

vm2pensioner

How exactly did you 'transfer the money'? If you did this by withdrawing the money and closing the existing ISA and you then reinvested the money in a new ISA, then it would count as new money. If you actually requested an ISA transfer online, you should be OK. If you did a legitimate transfer you may have been able to reverse the transfer in a cooling-off period. Normally, however, once money is out of an ISA, it loses its status, unless the ISA is a flexible one and left open.

PoGee

https://forums.moneysavingexpert.com/discussion/comment/82025185#Comment_82025185

The matured ISA is still open, I didn't close it. There's still money in there but at 0.9% interest. I opened a new santander ISA online and then transferred 3/4 of the matured amount into the new santander isa.

vm2pensioner

https://forums.moneysavingexpert.com/discussion/comment/82025187#Comment_82025187

If yiu think you actually requested an ISA transfer, go back to Santander and ask for clarification regarding the transfer and why it is considered new money.

mebu60

Confusingly some providers do use their online internal transfer process for transfers-in where you close and transfer the old account. Don't know how that would work for a partial transfer though.

If you transferred directly from the older ISA into the new one using Santander's internal transfer process and there were no warning messages I would raise a formal complaint if they won't treat it as a transfer-in and escalate to HMRC if needs be.

maman

If Santander are saying you 'should have filled out a form'.presumably you think you transferred it by a different process. It would help if you could explain exactly what you did.

friolento

They require you to fill in this form for internal ISA transfers.