Transfer Cash ISAs Discussion Area

Cryoman196

Can anyone help here. I'm looking for a cash ISA that allows transfers and also pays monthly interest. I'm happy to fix for up to two years if the price is right. The only one I can find is with SAGA, who use Birmingham Midshires as the operator. The problem is that I already have a fixed bond with BM that does not expire until Aug 2011, so I'd be exposed should the worst happen since my transfer plus the current year's £5100 plus the BM bond would put me over the £50k limit. (I assume the FSA would not consider SAGA as a different entity in this case for purposes of protection)
Suggestions anyone? It would help if monthly interest options were spelt out on Martin's articles btw...

10_66

Cryoman196 wrote: »

Can anyone help here. I'm looking for a cash ISA that allows transfers and also pays monthly interest. I'm happy to fix for up to two years if the price is right. The only one I can find is with SAGA, who use Birmingham Midshires as the operator. The problem is that I already have a fixed bond with BM that does not expire until Aug 2011, so I'd be exposed should the worst happen since my transfer plus the current year's £5100 plus the BM bond would put me over the £50k limit. (I assume the FSA would not consider SAGA as a different entity in this case for purposes of protection)
Suggestions anyone? It would help if monthly interest options were spelt out on Martin's articles btw...

Cheltenham & Gloucester BS offer a fixed rate (up to 30 June 2012) Cash ISA, 3.50% AER, monthly 3.44%.

timbridge

I was hoping for some help on an ISA provider that would allow me to transfer my 09/10 balance to improve the rate.

It is my intention to put my 10/11 allowance into A&L - but that account doesn't allow transfers.

Martin's article suggests the Birmingham Midshires account but the blurb on the website implies (it actually contradicts itself...) that you have to put in at least £500 for this tax year (at another point it talks about a minimum balance of £500 which is clearly not the same thing...).

Can anybody help? Will BM allow me to open an account just to transfer mu 09/10 balance into whilst putting my 10/11 allowance elsewhere?

Thanks

10_66

timbridge wrote: »

...Will BM allow me to open an account just to transfer mu 09/10 balance into whilst putting my 10/11 allowance elsewhere?

Yes, you can open an account with BM and just transfer your previous year/s ISAs to them if you want to. You'll need to complete one of their transfer forms along with the application. For the one I had with them last year, I had to send the transfer form to the old provider (you usually send the transfer form to the new provider along with the application form and they send it on for you). You need to check on what their transfer procedure is now, though.

calcotti

Bit that confuses me is this. "Transfer in" ISAs typically have a clause such as this:
"I apply to transfer my existing Cash ISA to Alliance & Leicester plc and to subscribe to this Cash ISA for the tax year 2009/10 and each subsequent year until further notice". This appears to be a commitment to not only tansfer in money but also to put the 2009/2010 allowance into the same account rather than opening a separate "new money only" account with a different provider.

"New money only" accounts sometimes have better rates.

Can anybody ease my mind on this?

julesaver

Ive just noticed on ING Direct website they'll pay 3% on isa transfers for accounts opened up to 30th april provided you open a direct savings account with them too, hope this hasnt been mentioned already i couldnt see it featured on page where birmingham midshires is mentioned. Ive saved my max allowance for 2009/10 and want to transfer it to somewhere else as am only getting 1.98% interest! Just wondering what others think if this deal before I commit myself

learntosave

calcotti wrote: »

Bit that confuses me is this. "Transfer in" ISAs typically have a clause such as this:
"I apply to transfer my existing Cash ISA to Alliance & Leicester plc and to subscribe to this Cash ISA for the tax year 2009/10 and each subsequent year until further notice". This appears to be a commitment to not only tansfer in money but also to put the 2009/2010 allowance into the same account rather than opening a separate "new money only" account with a different provider.

"New money only" accounts sometimes have better rates.

Can anybody ease my mind on this?

I have the same query. While opting for the A&L transfer in Direct ISA Issue 6 - it clearly says that "You have not contributed to another Cash ISA in the same tax year that you subscribe to this Cash ISA". I was interested in transferring my old ISA at M&S to this account and open a new one with Barclays for this tax year.

A little clarification will help.

Thanks

DUS

learntosave wrote: »

I have the same query. While opting for the A&L transfer in Direct ISA Issue 6 - it clearly says that "You have not contributed to another Cash ISA in the same tax year that you subscribe to this Cash ISA". I was interested in transferring my old ISA at M&S to this account and open a new one with Barclays for this tax year.

A little clarification will help.

Thanks

Yes, the wording defined by HMRC regularly confuses people.

You are absolutely fine transfering the old M&S ISA to A&L and open the Barclay´s account for new money for the 2010/11 tax year. In the terms of HMRC/the banks, you are not subscribing to the A&L ISA this year, only to the Barclay´s one. Transfers do not constitute subscribing to a new ISA.

DUS

calcotti

DUS wrote: »

Yes, the wording defined by HMRC regularly confuses people.

You are absolutely fine transfering the old M&S ISA to A&L and open the Barclay´s account for new money for the 2010/11 tax year. In the terms of HMRC/the banks, you are not subscribing to the A&L ISA this year, only to the Barclay´s one. Transfers do not constitute subscribing to a new ISA.

DUS

Thanks for the reply. I understand the logic of what you are saying in respect of HMRC but the terms and conditions (Alliance & Leicetster in this case) say

"I apply to transfer my existing Cash ISA to Alliance & Leicester plc AND to subscribe to this Cash ISA for the tax year 2009/10 and each subsequent year until further notice" so it appears to be a commitment to do both, OR

Does the act of putting new money into a different ISA act as "the further notice" referred to?

Bri1

Whats the current best transfer in rate ISA with no strings/long term attached?