Transfer Cash ISAs Discussion Area

SuperMum2010

Hi - can I transfer part of my previous years cash isa to a better paying cash isa and part to a different provider's stocks and shares isa without losing any tax benefits?

The_Only_Homer_Simpson_UK

Might seem a silly question but if i am at or near the limit of an institution's advised limit in Isa's ( ie without risking loss if the bank goes belly up) and I want to open a new ISA this year, how( and can i ) transfer my accumulated savings into another account to keep that earning best interest yet still open one this year elsewhere?
so eg have say 40k in a good isa rate from last year that ends in July this year and want to move that to a good account this year , yet also want to open a new ISA this year to (a) earn good interest on the new one this year and (b) keep the accumulated pot away from this year to ensure there is no risk of all monies in one pot that is over and above the recommended safe limit in one place?

thanks

10_66

The_Only_Homer_Simpson_UK wrote: »

Might seem a silly question but if i am at or near the limit of an institution's advised limit in Isa's ( ie without risking loss if the bank goes belly up) and I want to open a new ISA this year, how( and can i ) transfer my accumulated savings into another account to keep that earning best interest yet still open one this year elsewhere?
so eg have say 40k in a good isa rate from last year that ends in July this year and want to move that to a good account this year , yet also want to open a new ISA this year to (a) earn good interest on the new one this year and (b) keep the accumulated pot away from this year to ensure there is no risk of all monies in one pot that is over and above the recommended safe limit in one place?...

You can keep your previous years' accumulated ISA (£40K) with a different ISA provider from the one with which you choose to hold this year's subscription.

For the previous years' ISA you'd first have to check that the provider to which you want to move permits transfers in. Open an account with them (making sure you don't pay any new money into it), and request a transfer form, which is usually sent back to the new provider along with the application form. They then usually send this to the old provider to start the transfer process (sometimes the new provider asks you to send the transfer form to the old provider yourself instead).

You can open another ISA with a different provider into which you can subscribe this year's allowance.

jamesd

SuperMum2010, yes, you can do that split, just be sure that you specify it's a partial transfer since some transfer forms might not make it easy to do that.

The Only Homer Simpson UK, you can have an unlimited number of ISAs with money from past years so if you want 100 of them just get transfer forms from 100 ISA providers and ask to transfer £400 each from your existing ISA. A couple is easy by comparison. The one of each type rule (cash and S&S) applies only to the ones holding new money paid in during the current tax year. Some ISA providers may have individual rules that only allow transferring all of the money out from past years.

stuteach

WhiteSpace wrote: »

You could be transferring (ie. combining) more than one ISA. By the sounds of it you just have the one. I have previously transferred two old ISAs into one new ISA account.

Thanks for the help. Think that's me cooking with gas now!

gulliver_bear

I am in a dilemma - and would need your expertise out there who can advise on this quandary.
1. Should i close my ISA account ( worth two years worth of savings so far) and transfer it into a normal account, and i can get reimbursement of $100 ?
2. Or should I forget about the $100 reimbursement and wait for the isa transfer to get through which takes up to 30 days ?

the problem is i need to close the isa in 4 days time, if i want to be reimburse $100 by the financial institution but it can take up to 30 days for the ISA to be tranferred to the new bank. or is it worth forgetting $100 reimbursement on an isa that is only woth 2 years of casth saved up and start my isa all over again with this years allowance of $5100 ?

so the question is whether the $100 is worth loosing 2 years worth of cash isa status ?

Gulliver bear

boobbby

gulliver_bear wrote: »

I am in a dilemma - and would need your expertise out there who can advise on this quandary.
1. Should i close my ISA account ( worth two years worth of savings so far) and transfer it into a normal account, and i can get reimbursement of $100 ?
2. Or should I forget about the $100 reimbursement and wait for the isa transfer to get through which takes up to 30 days ?

the problem is i need to close the isa in 4 days time, if i want to be reimburse $100 by the financial institution but it can take up to 30 days for the ISA to be tranferred to the new bank. or is it worth forgetting $100 reimbursement on an isa that is only woth 2 years of casth saved up and start my isa all over again with this years allowance of $5100 ?

so the question is whether the $100 is worth loosing 2 years worth of cash isa status ?

Gulliver bear

If anybody can understand what Gulliiver bear is trying to say maybe they could explain it to me !!

SuperMum2010

gulliver_bear wrote: »

I am in a dilemma - and would need your expertise out there who can advise on this quandary.
1. Should i close my ISA account ( worth two years worth of savings so far) and transfer it into a normal account, and i can get reimbursement of $100 ?
2. Or should I forget about the $100 reimbursement and wait for the isa transfer to get through which takes up to 30 days ?

the problem is i need to close the isa in 4 days time, if i want to be reimburse $100 by the financial institution but it can take up to 30 days for the ISA to be tranferred to the new bank. or is it worth forgetting $100 reimbursement on an isa that is only woth 2 years of casth saved up and start my isa all over again with this years allowance of $5100 ?

so the question is whether the $100 is worth loosing 2 years worth of cash isa status ?

Gulliver bear

Are you in America? Not sure why USD used in this thread? If you are, perhaps different rules apply?!

murphydavid

gulliver_bear wrote: »

I am in a dilemma - and would need your expertise out there who can advise on this quandary.
1. Should i close my ISA account ( worth two years worth of savings so far) and transfer it into a normal account, and i can get reimbursement of $100 ?
2. Or should I forget about the $100 reimbursement and wait for the isa transfer to get through which takes up to 30 days ?

the problem is i need to close the isa in 4 days time, if i want to be reimburse $100 by the financial institution but it can take up to 30 days for the ISA to be tranferred to the new bank. or is it worth forgetting $100 reimbursement on an isa that is only woth 2 years of casth saved up and start my isa all over again with this years allowance of $5100 ?

so the question is whether the $100 is worth loosing 2 years worth of cash isa status ?

Gulliver bear

I take it that for $ we read £ and the reimburse is some sort of compensation for a bank not being able to comply with there own rules. So its a mathematical thing for which we need to know.
What is your tax rate
How much went in the first 2 years
How long do you expect to leave your money before you spend it.
What rate of interest do you expect to get on your ISA
What rate of interest do you expect to get on your savings account.
How much time and effort will you take in moving your money to get bonus rates etc
With all that I expect you can work it out.
ie How much interest you loose in 30 days (if any)
against How much money you are likely to gain from tax relief over your expected period. (Probably £50 or less a year)

dasim

Don't forget that ISA interest doesn't have to be declared on a tax return. That can save some hassle.
Also you need to be able to predict interest rates which is virtually impossible. Just make sure you don't leave the money in an account which drops it's rate after a time. I was never an interest rate tart, but I am now as the banks are penalising loyal savers.