Transfer Cash ISAs Discussion Area

bb1942

Good day all. I have this problem every March. I have a Halifax fixed rate ISA which has £44k in it. Halifax will give me 3.5% if I lend them the money for 2 years with no withdrawals. I think the interest rate will improve over the next year so only want to invest for a year plus I might need some of the money. I have found some 1 yr ISA but they all have drawbacks. Santander, no cash transfer in, although their Issue 6 will at 2.75%. Where could I put this cash and get some return? Am I expecting too much from our grabbing finance industry?
Sorry If I have posted in the wrong place.

Bert b

margaretlouise

I have only 3 ISA's - one with Fidelity European (GBP 1700) through a broker, Sterling and the other two bought by myself - Alliance & Leicester GBP 3032 and Scottish Widows GBP 3119, which only paid interest of 19.38 and 24.70 respectively last April. I am thinking of transferring them before the end of the tax year, one to Nationwide as I have a Flexaccount with them, but where else would be the best. Can I top these up in this current tax year also. After 6 April, I think I will come out of the Fidelity and top that up as well. Can anyone please advise me. I am over 65.

Baldur

bb1942 wrote: »

Good day all. I have this problem every March. I have a Halifax fixed rate ISA which has £44k in it. Halifax will give me 3.5% if I lend them the money for 2 years with no withdrawals. I think the interest rate will improve over the next year so only want to invest for a year plus I might need some of the money. I have found some 1 yr ISA but they all have drawbacks. Santander, no cash transfer in, although their Issue 6 will at 2.75%. Where could I put this cash and get some return? Am I expecting too much from our grabbing finance industry?

Many of us are in the same predicament.

I, along with some other posters, have decided to opt for M&S 3-year fixed rate ISA @ 4%, which permits early closure/transfer for a fixed charge of £100.

On my balance, I calculate that even if I transfer out after one year and pay the £100 charge, I will have still earned around £330 more than I would have on LTSB's offer of a one-year easy access account @ 3.1%.

Baldur

margaretlouise wrote: »

I have only 3 ISA's - one with Fidelity European (GBP 1700) through a broker, Sterling and the other two bought by myself - Alliance & Leicester GBP 3032 and Scottish Widows GBP 3119, which only paid interest of 19.38 and 24.70 respectively last April. I am thinking of transferring them before the end of the tax year, one to Nationwide as I have a Flexaccount with them, but where else would be the best. Can I top these up in this current tax year also. After 6 April, I think I will come out of the Fidelity and top that up as well. Can anyone please advise me. I am over 65.

Are these Cash ISAs or Stocks & Shares ISAs or a mixture of the two types?

margaretlouise

Sorry - now you mention it the Fidelity one was a (Maxi ISA in its day) so probably is a mix of cash and stocks and shares (when GBP 700 was the limit). It has been dipped into when the going was good! The other two are cash ISA's.

Baldur

margaretlouise wrote: »

Sorry - now you mention it the Fidelity one was a (Maxi ISA in its day) so probably is a mix of cash and stocks and shares (when GBP 700 was the limit). It has been dipped into when the going was good! The other two are cash ISA's.

The Fidelity one will probably have been redesignated as a S&S ISA in April 2008, so cannot be transferred to a Cash ISA. Cash ISA to S&S ISAs are permitted but not vice versa.

The two Cash ISAs could both be transferred to Nationwide, subject to any Terms & Conditions applicable to the old accounts, if you wish.

You don't say whether you have made any subscription to a Cash ISA in the 2009/10 tax year. You can only subscribe to one Cash ISA per tax year, so you certainly couldn't 'top-up' both.

margaretlouise

I did not subscribe in year 2009/2010 so presumably could top up both??

Baldur

margaretlouise wrote: »

I did not subscribe in year 2009/2010 so presumably could top up both??

No, as I said above, you can only subscribe to ONE cash ISA per tax year.

You could pay up to £5,100 into a new Cash ISA for 2009/10 or add it to one of your old Cash ISA accounts, Ts & Cs permitting, if you wish. If you have not subscribed to an old Cash ISA for a full tax year, it will have to be reactivated - probably via a new application form.

pok_2

Baldur wrote: »

Yes - presumably you are talking about the 2-year FRISA for your transfer.

Dividing your (what will then be) current tax year allowance is not generally permitted, although some providers (Nationwide springs to mind) have been known to treat multiple ISA accounts as a single entity.

IMHO this is unlikely with A&L.

I would keep the plan simple, as per your first post. Trying to be too creative, knowing A&L/Santander customer service/efficiency, is likely to lead to tears - yours.

Thanks for the swift response! I'm going to keep it simple as u advised. 5100 fresh fund with flexible isa 3.5% with A&l, and transfer 7600 old funds to nationwide 1yr fixed rate 2.75% :rotfl:

One more query, if in tax year 11/12 a good ISA product appears, can I transfer both ISA funds into one new ISA a/c or is that a bit tricky?

Baldur

pok wrote: »

....if in tax year 11/12 a good ISA product appears, can I transfer both ISA funds into one new ISA a/c or is that a bit tricky?

No problem, as long as the new provider accepts ISA transfers.

The most complicated thing that you may have to do is to complete a different ISA transfer form for each old account.