Halifax ISA renewal option - just checking I'm doing it right

ChasingtheWelshdream

I have a Halifax Instant ISA paying a rubbish rate that I am looking to change. My basic understanding was that I would need to transfer to a new provider.

However when I log in, there is the option to Renew, and lists with various ISA options including a fixed term I am happy with.

As far as I can tell, renewing would keep the same account and simply applies a new product/rate, but does not close or open a new ISA.

Can anyone tell me if if this is correct? We have already opened and maxed out a new ISA elsewhere this tax year, so I want to make sure I keep within the rules.

I can ring tomorrow but would rather not be on hold for hours if I can help it.

booneruk

There's no limit on the number of ISAs you can open in a financial year, it's just the 20k allowance (new money) that you need to keep within - so no problem with whatever Halifax are offering.

If you do decide you want to transfer, you'd need to sign up with an alternative ISA provider and kick off the transfer with them.

StewedApple

Can anyone tell me if if this is correct? We have already opened and maxed out a new ISA elsewhere this tax year, so I want to make sure I keep within the rules.

No, you must transfer-in with a new provider:-

Find an ISA elsewhere that accepts transfers-in

Open this ISA (but add no new money as you've already used up this year's allowance)

There will be a screen somewhere inviting you to transfer-in an existing ISA - enter the details of the existing ISA here, and the new provider will contact your existing provider for the money.

ChasingtheWelshdream

Thank you,

So to clarify, do you mean the renewal options that Halifax are giving me would effectively be opening a brand new ISA (which I don't want)?

The way the website words it, it makes it sound like renewing keeps the same ISA but simply agrees a new interest rate. In the same way as the previous fixed-rate product I had with them simply transferred at the end of the term to the Instant Access ISA is now is.

Sorry if that sounds a daft question…

ChasingtheWelshdream

Sorry I replied to StewedApple before I saw both replies.

To clarify, we have multiple ISAs that we max out each year with new deposits (our FA opens and looks after those). I simply forgot to do anything with this cash one and realise it is now only earning at 0.9%,

I am happy to keep with Halifax and their 4% for another year.

That is possible using the renew option? I'm understanding correctly that I am simply agreeing a new fix, not closing, opening or depositing anything?

masonic

I'm baffled by the previous responses. It is 100% valid for a provider to switch an ISA from one product to another. In this situation the existing ISA continues with either the same or a new account number and the contents retains its status. There is no requirement to change ISA provider if you have found a suitable product with your existing provider.

Many providers will support such "internal transfers". Every provider offering a fixed-term account has to.

I cannot personally vouch for Halifax's "renew" option when switching between cash ISA products, but I strongly suspect it is fine. There is an online chat facility if you need peace of mind and don't want to phone.

ChasingtheWelshdream

Thank you Masonic,

Your explanation is how I was reading Halifax's website, but I think I have maybe not explained my question properly and confused us all -sorry!

The ISA has already 'changed' to its current product once the fixed-rate ended, and I am assuming the renew option is just changing it again. It does say it keeps the same account number but I wanted to double check.

I can't see an option for webchat, so I guess it will appear during opening hours and will triple check with that tomorrow.

StewedApple

https://forums.moneysavingexpert.com/discussion/comment/82153082#Comment_82153082

It's quite common when an ISA matures that it is automatically renewed by the existing provider but on a lower rate, if you're not happy with this rate you can move your ISA to another product. You can either move to another product with the same provider (in this example Halifax) or to an external provider (such as The Nationwide).

In both cases the product you select must permit transfers-in - because this is what you are doing. When you go to complete the new ISA it will have an option to transfer-in (even the Halifax one) You would simply select your existing ISA and then transfer it in.

Typically, you might find Halifax offers say a 1 or 2 year fixed rate ISA with much better returns than the one your money is already in, provided it offers transfers-in then this will be prompted on-screen.

You should note that a transfer-in preserves the existing tax free status of the existing ISA - you're simply moving it to a better product. This has no impact on this year's tax allowance which you've commented has already been used up in an investment ISA.