Transfer Cash ISAs Discussion Area

purplestar133

boobbby wrote: »

Mine matured on the 15 December ...about 3 weeks before this date I had a letter from Northern Rock with loads of options. I could have been paid the money on maturity. Transfered to another provider or taken out one of their new offers (This is the option I selected as it was for 3.05% and was only for 1 year) I could have also done nothing and it would have been converted to a 30 day cash ISA although during the first 30 days only I could transfer or withdraw the cash without notice. After the first 30 days you need to give 30 day notice or suffer a penalty. Hope that helps !

Thanks, that does help!

purplestar133

Zeusiblue wrote: »

So if i had an isa every year does that mean at the end of each tax year i need to find a home for everyone of the isas? Or could i transfer them all into one isa? Would i need to transfer the isa before the 5 April so i can start a new one on the 6th?

You don't have to wait til the end of the tax year to transfer variable rate ISAs, you can transfer them to other accounts paying better rates at any time, as long as they accept transfers in.

Alternatively, you don't have to transfer them at all. You can leave them where they are but, at some point their interest rate will no doubt drop to a poor rate.

Once the new tax year starts you can either:

1) pay in the new tax year's allowance to the ISA you already have open with last year's money in it or

2) You can open a new ISA for the new tax year's money and leave last year's money where it is or

3) you can transfer last year's money into an ISA that accepts transfers in and you can pay the new tax year's allowance into that too.

Hope that makes sense!

Wheely_Wonderful

Can you tell me if you can transfer shares ISAs from one provider to another as per cash ISAs?
Do the same rules apply re transferring not cashing them in and taking out another?
Can shares ISAs br transferred to cash ISAs without losing some interest?
Many Thanks

ISA_ISA_Baby

My ISA has matured and the rate has dropped so its time to move it to a new one. The letter from my bank (Northern Rock) suggest their best fix term rates however there is a line that concerns me. It states that after transferring the funds to the new account (by the proper ISA transfer process) I am given 30 days to put any further funds (new money) into the account. Then "after the 30 day period you will not be able to make any additional deposits in to this or any other cash ISA in the current tax year."
I understand that they are restricting the time the account is open to new funds but its last bit that confuses me. Why, if I have not used my full allocation for that year may I not put it into another account? Surely I can transfer my existing ISA plus add a lump sum of what I have available and then leave it to mature, while spending the rest of the year adding savings (up to my allocation) to a new account month by month.

Can anyone shed any light on this? Is it the bank being silly bug-ers

boobbby

ISA_ISA_Baby wrote: »

My ISA has matured and the rate has dropped so its time to move it to a new one. The letter from my bank (Northern Rock) suggest their best fix term rates however there is a line that concerns me. It states that after transferring the funds to the new account (by the proper ISA transfer process) I am given 30 days to put any further funds (new money) into the account. Then "after the 30 day period you will not be able to make any additional deposits in to this or any other cash ISA in the current tax year."
I understand that they are restricting the time the account is open to new funds but its last bit that confuses me. Why, if I have not used my full allocation for that year may I not put it into another account? Surely I can transfer my existing ISA plus add a lump sum of what I have available and then leave it to mature, while spending the rest of the year adding savings (up to my allocation) to a new account month by month.

Can anyone shed any light on this? Is it the bank being silly bug-ers

After your ISA matured it is transfered into a new 30 day ISA which pays very poor interest. As you can only have one ISA each tax year they have allowed you 30 days grace to add to this new ISA before they close payments into this ISA. Your only option then would be to transfer this new ISA to another provider if you wanted to add this years allowance to it. The problem you would have is that we will probably be into next years allowance before the transfer can take place. If you dont want one of NR's fixed rate ISA's then bite the bullet and pay the rest of this years allowance into the 30 day ISA... give 30 days notice and transfer to another provider who next year will allow you to pay into it monthly.

WhiteSpace

ISA_ISA_Baby wrote: »

Surely I can transfer my existing ISA plus add a lump sum of what I have available and then leave it to mature, while spending the rest of the year adding savings (up to my allocation) to a new account month by month.

AFAIK you cannot do this; with any ISA. Although you can have more than one ISA, you can only contribute/subscribe to just one Cash ISA (and one Stocks and Shares ISA) in any given tax year. So, if you transfer AND add funds (subscribe to) then you won't be able to subscribe to another Cash ISA (month by month) in the same tax year.

Since transfers don't count towards your annual subscription then you might be able to transfer the ISA into a new Cash ISA without subscribing to it and open another Cash ISA in which you pay in month by month. Providing the ISA manager that you have transferred into doesn't insist you subscribe to it as well.

http://www.hmrc.gov.uk/isa/faqs.htm#8

laurel01

purplestar133 wrote: »

You don't have to wait til the end of the tax year to transfer variable rate ISAs, you can transfer them to other accounts paying better rates at any time, as long as they accept transfers in.

Alternatively, you don't have to transfer them at all. You can leave them where they are but, at some point their interest rate will no doubt drop to a poor rate.

Once the new tax year starts you can either:

1) pay in the new tax year's allowance to the ISA you already have open with last year's money in it or

2) You can open a new ISA for the new tax year's money and leave last year's money where it is or

3) you can transfer last year's money into an ISA that accepts transfers in and you can pay the new tax year's allowance into that too.

Hope that makes sense!

I have approx. 11k in a Yorkshire Building Society e-isa which has an interest rate of 2.1% at the moment. I can't decide whether to transfer it to Halifax's ISA Direct Reward which pays 2.8% or wait until the end of the tax year and then transfer.

purplestar133

laurel01 wrote: »

I have approx. 11k in a Yorkshire Building Society e-isa which has an interest rate of 2.1% at the moment. I can't decide whether to transfer it to Halifax's ISA Direct Reward which pays 2.8% or wait until the end of the tax year and then transfer.

There's no need to wait til the new tax year, although having said that, it won't be too long before banks start bringing out new ISAs with headline interest rates to coincide with the new tax year.

You could transfer to Halifax and then transfer again to a higher rate when the high rate ISAs come out around the new tax year, but with the time it takes for an ISA to be transferred it may not be worth the hassle, or the interest lost in the transfer process.

loweshillgraham

hi, i helped my mother-inlaw oraganise here finances and get the best deals, including tranfserring an ISA as per this good site. All went well when we organised it over the phone, but as only my mother-inlaw could get there, they then insisted at the branch she get the money out and put it in an ISA. Against all previous planning. I hear that this is a big no-no but i have no idea what to challenge the bank on or indeed what was lost as a monetary value. cheers if you could provide some info to challenge them.
PS this happened in November and i've only just been told the story!

MarkyMarkD

They can't have "insisted" she took the money out ... it was her money! And if it was a transfer between two ISAs with the same institution, there's no way in a million years that it would make sense to "take the money out".

If it was reinvested in an ISA which doesn't accept transfers, that might start to make sense ... and might be good advice at this stage in the tax year, if there's no way she would use up her ISA allowance with "new" money.