Trapped in Virgin non-flex Isa

The_stingemeister

I have the Virgin defined access cash e-isa issue 35. And in a flummox over it. I (wrongly it seems) thought it was a one year term. So I was waiting for the supposed maturity to arrive so I could transfer part of it elsewhere to another ISA. There is no maturity, (and it's non-flexible, although you're allowed 3 withdrawals a year). So how do I transfer all or any of it without losing the tax free status? Internal transfer to a 1 year fixed Virgin ISA? There must be a way out?

The_stingemeister

I'd add that I was fooled into thinking it was a 1 year fix because of the "3 withdrawals per year" rule.

fuzzzzy

So have you already made 3 withdrawals from it?

The_stingemeister

https://forums.moneysavingexpert.com/discussion/comment/82153687#Comment_82153687

No, only one.

fuzzzzy

Then you can transfer part or all of it to any ISA provider who accepts transfers in.

A transfer counts as a withdrawal.

Just make sure you transfer using the correct process by opening an ISA with the new provider you want and initiating the transfer through them. Don't just withdraw the funds.

Sherlock33

You transfer out by opening a new ISA with whoever you want to be your new provider and ask them to transfer the balance from Virgin to your new ISA. An ISA transfer counts as a withdrawal so if you do a partial transfer (if this is allowed) then any remaining monies would be subject to whatever impact that withdrawal would have on your interest rate.

The_stingemeister

I have transferred a partial Virgin ISA amount to another provider (today) where I already had an ISA with them. By the way, I've already used up my £20k ISA allowance with a different provider earlier in the year. Where do I stand, have I broken the ISA rules now, and has the amount I transferred lost it's tax free status?

Sherlock33

The 20K allowance is for new money. A transfer is not new money. A transfer does not count towards the 20K.

You can open as many new ISA's as you like. You can have as many ISAs as you like.

Transferred ISAs always keep the tax free wrapper. The only time you loose the tax free wrapper is if you withdraw the money out of an ISA into a none ISA account.

fuzzzzy

How did you transfer the partial Virgin ISA amount. Did you ask the other provider to transfer the funds as an ISA transfer?

The_stingemeister

https://forums.moneysavingexpert.com/discussion/comment/82153698#Comment_82153698

I did initiate through them, but it was an existing ISA.

Sherlock33

So long as they did all the moving of money you are fine.