Transfer Cash ISAs Discussion Area

Crabman

bellpiero wrote: »

hi,

i have an ISA with hsbc with about £7k in it. i have already lumped this years allowance (£3600) into it a couple of days ago.

i have only just started looking into sorting out my finances and now realise i would be far better off with A&L however reading their form it would suggest that the minimum balance for their ISA is £1. What i would like to know is will A&L let me open an ISA today with nothing in it and then let me transfer my £7k in or do i actually need to start the account off with the minimum £1 (which obviously i wouldn't be able to do as i've already used my £3600 allowance)

any help appreciated!

Yep just open the account (no new money needed) and send the transfer form to HSBC - the balance being transferred will cover the minimum investmet of £1

Crabman

Mike_J wrote: »

With a least one drop in interest rates expected in the near future, Im looking to transfer some of my instant access variable rate money (an amount I can tie up for 12 months) into a fixed rate one. Initial looks are about 6%(Cheshire, 6.1Nationwide). What rates have others seen?

Lloyds TSB (details in article) has a 6.5% fixed rate 1-year ISA (only on balances of £9000+).

I've noticed posts about this account being pulled in the near future (could just be rumour!) so if it appeals to you, best act sooner rather than later

winebox

I've see variations of this question asked several times bit I'm STILL not sure of the definitive answer! Probably I'm stupid but.....
I have opened a 2008/09 ISA with NCBS at 6.26% with just £10, intending to top up to £3600 via internet when I get the account number. I have old ISAs at rubbish interest rates. Can I ALSO open another ISA eg with A&L only to transfer the old ones into, obviously I cannot subscribe to it as have already chosen NCBS? It means that technically I am opening 2 isas, I am not sure if A&L would allow transfer only or if I have boobed & should have chosen them for my allowance this year???

Crabman

winebox wrote: »

I've see variations of this question asked several times bit I'm STILL not sure of the definitive answer! Probably I'm stupid but.....
I have opened a 2008/09 ISA with NCBS at 6.26% with just £10, intending to top up to £3600 via internet when I get the account number. I have old ISAs at rubbish interest rates. Can I ALSO open another ISA eg with A&L only to transfer the old ones into, obviously I cannot subscribe to it as have already chosen NCBS? It means that technically I am opening 2 isas, I am not sure if A&L would allow transfer only or if I have boobed & should have chosen them for my allowance this year???

Hi winebox, welcome to MSE

You can open as many ISAs as you like. The limit of one per year only kicks in when you put new money in (subscribe) to an ISA. Transferring existing ISAs has no effect on your current allowance.

As you're looking to transfer old ISAs into the A&L Direct ISA, you'll need to open the account, then send the transfer form(s) off to previous provider(s).

I did the same recently and it looks like A&L either backdated interest to the date of transfer or were exceptionally efficient in processing the transfer documents on the day following closure of my old ISA.

suelees1

Woodentop wrote: »

Has anyone considered moving to the Lloyds TSB fixed rate ISA? Seems to be a nice rate Guaranteed as well, i am thinking about moving my money from HSBC to Lloyds unless there are any other places to look at?

Yes we did it at the weekend.

boobbby

Woodentop wrote: »

Has anyone considered moving to the Lloyds TSB fixed rate ISA? Seems to be a nice rate Guaranteed as well, i am thinking about moving my money from HSBC to Lloyds unless there are any other places to look at?

Better be quick as it is rumoured to close today !!

BB

boobbby

Last year I paid £3000 into a provider than transfered part of the ISA to a fixed rate with another provider. I.e £10k to the new provider 5k remaining with the old provider. Can I choose this year to pay by using BACs into either provider. (I do realise I can only choose to pay into only one unless I do a further transfer)
Can you pay into an ISA using cash?

JohalaReewi

Crabman wrote: »

You can open as many ISAs as you like. The limit of one per year only kicks in when you put new money in (subscribe) to an ISA. Transferring existing ISAs has no effect on your current allowance.

Do you have a definitive source for this (under the new 2008 ISA rules)? When I went to open the A&L ISA just to transfer in, it said that I was also subscribing to an 08/09 ISA and would not be able to open a cash ISA with anyone else in the current year. I queried this with HMRC who said that once you have opened a cash ISA for 08/09, you cannot open another one even if you have not paid anything into the first ISA. The HRMC person was most insistent and I hope it isn't true but can't find anything official that says otherwise.

Maybe I should just try it and see what happens?

Crabman

JohalaReewi wrote: »

Do you have a definitive source for this (under the new 2008 ISA rules)? When I went to open the A&L ISA just to transfer in, it said that I was also subscribing to an 08/09 ISA and would not be able to open a cash ISA with anyone else in the current year. I queried this with HMRC who said that once you have opened a cash ISA for 08/09, you cannot open another one even if you have not paid anything into the first ISA. The HRMC person was most insistent and I hope it isn't true but can't find anything official that says otherwise.

Maybe I should just try it and see what happens?

Take a look at the thread isasmurf started. There is a link in the first post to the HMRC page explaining the changes: ISA rules have changed Discussion

Still doesn't look like there's a restriction on opening ISA accounts. The limit of one (of each type, i.e. Cash & Shares) per year kicks in only when you deposit new funds into the account.

jamesd

JohalaReewi,

Guidance Notes for ISA Managers:

"5.2 Before a manager can open an ISA, he must hold

• a valid application, which he has accepted (paragraphs 5.8 and 5.9), and
• a valid subscription (paragraphs 6.3, 6.6 – 6.12 and 6.19 – 6.34).

5.3 An ISA begins from the later of

• the date on which the ISA manager accepts the application form, and
• the date on which the subscription is made (paragraph 6.9).

The manager should record the date he accepted the application (which may not be before the date of application) in his records. This means that applications may be accepted before the tax year in which subscriptions can be made."

If you have only transferred money you have not subscribed for this year and you are entirely free to subscribe (deposit money in) another ISA of your choice this year.

Further, even if you had already deposited new money this tax year, see the Guidance Notes for ISA Managers

"12.35 In general, the invalid subscriptions to the second ISA can be repaired to the extent that the total subscriptions in the tax year to the two ISAs do not exceed £7000, or £3000 for subscriptions to cash components (see paragraph 12.38). ...

For Example

Mr James subscribes £3000 to a stocks and shares maxi ISA with Candobank plc in 2005-2006. Later in the same tax year he subscribes £7000 to a stocks and shares maxi ISA with Megafund plc. None of the subscriptions are used to purchase insurance products. The subscriptions to the Megafund plc ISA are invalid but repairable. The total subscriptions are £10000, which exceeds £7000. The excess subscriptions of £3000 must be removed from the Megafund ISA, but the other £4000 subscriptions can be repaired."

HMRC will write to the second manager if and only if the subscribing/depositing limit has been exceeded and tell them to return the excess. In any case they will write to the consumer telling them about the breach of the rules and not to do it again.