Transfer Cash ISAs Discussion Area

bristolleedsfan

MiserlyMartin wrote: »

Hi

I have a Skipton mini cash ISA. I wanted to transfer it to Lloyds. I've just read the T's&C's and it says they they require 30 days written notice and a £30 payment to cover their 'administration costs'. I did not know about the fee, if i had I would never have opened the account years ago.

quote]

Have u different T&Cs to these?


http://www.skipton.co.uk/savings_and_investments/isas/mini_cash_isa/disclaimer.aspx

delwboy

How often can you transfer to a new provider. Can you do it more than once in the same tax year?

10_66

You can transfer as often as you like, as long as the new provider permits transfers in. You need to make sure that you're not losing too much interest by moving often, if your new provider doesn't open the new account either on day or day after that old one was closed and transferred. Some don't and you may lose interest during the transfer period.

jamesd

delwboy, for those that you're currently contributing to the limit is about 90 switches per year, assuming you need a postal application, no processing time, that the money is transferred by cheque and that the receiving provider is willing to send out a cheque to the next one in the chain before the cheque to them has cleared. The practical limit is nearer 20-30 switches per year.

For money from past years there's no effective limit, it just depends on how finely you want to split the money and the minimum transfer value that providers will accept. If you can find 300 providers that'll take a 10 transfer just one year's money can be split into 300 different accounts. Then you can start doing circular transfers from each of the 300 to the next one in the circle as fast as you're able. Realistically you probably couldn't do more than a few hundred transfers per year from a 3,000 contribution. Continue and I suppose providers might eventually start to blacklist you for wasting their admin money.

libertine_2

Hi, hope this question isn't too dumb!

We had a class today on ISAs and I had a question on transfers -

If you have £10,000 in Mini Cash ISA with Bank A and you wanted to transfer it to Mini Cash ISA in Bank B because the interest rate is better, would you be able to transfer the whole £10,000? Or would you only be able to transfer £3,000 as that is the limit, and then not be able to invest any more that tax year.

I thought you would be able to switch the whole lot, otherwise there isn't any point in switching, as you have £10,000 in total still (£7,000 in Mini Cash ISA A and £3,000 in Mini Cash ISA when you could just put £3,000 more in ISA A.

My teacher said that you would only be able to transfer £3,000 between the 2 ISA's, and that would use up your allowance for the year, which I didn't think made much sense. But then my friend said she transfered £3,500 from one ISA to another and £3,000 was treated as tax-free but the additional £500 was taxed on the interest.

Thanks

Crabman

Hi libertine,

Transferring an ISA has no effect whatsoever on your allowance. So in your example you'd be free to transfer the £10,000 ISA to any provider that accepts the transfer in.

The £3000 limit only applies if you're putting new cash into an ISA account. From 6 April this limit increases to £3600 but still doesn't affect transfers of existing ISAs as in your example.

Have a read of the Cash ISA Transfers article and then you can explain to your teacher how it really works!

MiserlyMartin

bristolleedsfan wrote: »

MiserlyMartin wrote: »

Hi

I have a Skipton mini cash ISA. I wanted to transfer it to Lloyds. I've just read the T's&C's and it says they they require 30 days written notice and a £30 payment to cover their 'administration costs'. I did not know about the fee, if i had I would never have opened the account years ago.

quote]

Have u different T&Cs to these?


http://www.skipton.co.uk/savings_and_investments/isas/mini_cash_isa/disclaimer.aspx

Thanks yes I think, its a 'Mini Cash ISA (182)' it says on the passbook. I was going by the leaflet I still have from when I opened the account in 2002. Is it possible that they have changed them I wonder and that it will effect me or will I be stuck with the old ones for my ISA. In any case surely I could claim that older customers have been penalised if newer ISA holders don't have the same restrictions.

Perhaps I should just sent the form off to Lloyds and see what happens?

bristolleedsfan

MiserlyMartin wrote: »

bristolleedsfan wrote: »

. Is it possible that they have changed them I wonder and that it will effect me or will I be stuck with the old ones for my ISA. In any case surely I could claim that older customers have been penalised if newer ISA holders don't have the same restrictions.

Perhaps I should just sent the form off to Lloyds and see what happens?

]


Make an enquiry through the Skipton site.

english-setter

Hi, I have read all the messages and am confused - it doesn't take much!

1) I have a fixed rate ISA and a Cash ISA with Legal & General from about 5 yrs ago, into which I have been paying monthly (to pay off interest only mtge). I have just had a letter from L&G saying that my Cash ISA will automatically be changed to a stocks and shares ISA. This is obviously not happening across the board, only with L&G. Can they do this?

2) I also have an old Fixed Anniversary ISA with Yorkshire BS which I opened in Nov 2004. Having read the messages it seems that you can only have one Cash ISA open into which you are putting funds. I didn't know this and put money into the Yorks BS ISA every year until 2007, but none this year. Am I in trouble because of the L&G ISAs? (I would not have exceeded the total amount allowed just, potentially, the number of providers.)

If so, what do I do?!?!? Eeeeeeek...

10_66

You can only contribute to one cash ISA in the current tax year. This can either be into a new one, or into an existing ISA opened in a previous year. You can't add more than £3,000 per year (increased to £3,600 for tax year 08/09).

The T&C's for ISA's are changing from new tax year, so it could be that the automatic change over L&G are doing is something to do with that. Click the following link to "See what's changing?"