Transfer Cash ISAs Discussion Area

JohalaReewi

Crabman wrote: »

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.

That's what I thought but the HMRC said otherwise. Thanks to Jamesd for the link to the managers guide where I can see that the HMRC were wrong. If I don't put any new money in, I haven't actually opened the ISA for this year.

udydudy

I recently transferred last years Tax Beater ISa to the Leeds 3 yr 6.10 % fixed rate ISA, Barclays sent the ISa cheque with Interest upto 2nd April to Leeds. Leeds credited my account on the 5th April which means I lose 2 days interest Leeds is fobbing me off saying barclays is responsible and viceversa with barclays.

anyone here can assist me in who is liable. I was under the impression that an investor does not lose any interest during transfers.

rakesh_2

Hi

I recently transfered my Halifax ISA on 26 march to A+L Isa issue 4. However, the money has not arrived in the account. Is anyone in this situation as i am worried that halifax has lost my money. Does anyone know how long the transfer takes until the money has arrived in the new account. I have been ringing both halifax and A+L but they don't seem to give me stright answers.......

zoebel

zoebel wrote: »

Both me and my wife are having terrible trouble transfering our ISA's from Bradford and Bingley. There are long delays, they are not replying to multiple requests from my new provider for the funds. They have closed my account and claimed to have sent my cheque but the new provider states not to have received it 13 days after they Bradford and Bingley said that they sent it. Their email replies to me and my wife are curt, rude and unhelpful.

What I want to know is, is anyone having this problem? If they state in their website that the transfer takes less than 30 days, and it has now taken over 6 weeks and is not yet resolved, am I entitled to compensation?

This is sadly still going on! My advice to you is don't touch Bradford and Bingley with a bargepole. The latest is that Icesave have just written to me to advise that they are unable to accept the transfer as the documentation they received from Bradford and Bingley with my funds was "not completed correctly" and they have written to them again.

In the meantime Bradford and Bingley have closed the account and no interest whatsoever is being earned. I also cannot add any of this year's subscription to the ISA.

Me and my wife have launched a formal complaint seeking compensation from Bradford and Bingley with regards to the loss of income and inconvenience caused.

I'll keep you posted.

jamesd

udydudy, your impression was wrong. An ISA manager may choose to pay interest while the money is in transit but that is not required. The interest up to the date of the transfer will be paid, though, so you don't lose out for partial years (subject to any conditions relating to fixed term ISAs or penalties in the outgoing ISA's contract).

Consider: if the first paid, they would have to pay until the second got their act together without control over how long that would be and would have the added cost of a second cheque to send for what is likely to be only a few Pounds (at 6.5% it's about 17p per day per thousand Pounds being transferred). If the second paid, they would be paying interest on money the first still holds.

bristolleedsfan

jamesd wrote: »

If the second paid, they would be paying interest on money the first still holds.

While that is true, the counter argument is that the "second" provider keeps the interest on its transfer outs many days after it stops paying interest to the transferring out customer.

Also, The transferring out customer has no control over when or how the transfer out is administered and a ISA transfer out is effectively an account transfer with the saver not touching the funds so why should he/she lose out.

Ive been told that fully backdating interest on ISA transfer in(s) is a recommendation of the Banking Code, because its only a voluntary recommendation nobody is bound by it.

Theres obviously a reason why Halifax, Abbey, Nationwide, Leek BS and Saffron BS all fully backdate interest on ISA transfer in(s).
Scottish BS did so after only after i queried the matter with them, KRBS refused to in December 2007 citing that they dont do many transfers out being as their ISA rate had been consistently one of the highest. ( times have changed quickly)

funkyhitman

Crabman wrote: »

You're in the same situation as me - last week I opened an Alliance & Leicester Direct ISA online. Once I'd been sent the account details & transfer form by post, I filled it in and posted it to NS&I.

That's all you need to do!

Hopefully in the next couple of weeks the ISA will be transferred into the new Alliance & Leicester account.

Hello Crabman, I have just opened an A&L Direct ISA and also want to transfer my NS&I ISA to it but I am a little confused about the transfer form. I wonder if you can help me.

Firstly I thought you had to send the A&L transfer form to A&L and they will contact NS&I? How do you know NS&I will accept the form direct from you? Do A&L send this form onto NS&I anyway?

Secondly, the last section 'Authority' on step 10 of the form states:

'Please accept this letter as my authority to transfer previous years' subscriptions: £___________'

Now, do I write in the amount I paid into the NS&I account initially (£3000) or do I include the interest which has just been paid? If I write £3000 does that mean that the current interest will stay in the account and only £3000 will transfer? If I include the interest that was paid on 6th April what happens to any interest after that date? I want to transfer everything, including any interest that hasn't been paid yet, into my A&L ISA.

Thirdly, the form also states 'My evidence of investment/passbook is enclosed.' I don't have a passbook so what evidence should I send? A copy of my NS&I account confirmation letter?

It really frustrates me that so little is explained. Am I really expected to know all this?

Thanks for your help Crabman.

heathers_3

Hey all,

I have a Cash ISA with IF for a number of years (approx £5K-7K) which is at a current rate of 5.35% AER/Gross. After reading about the various current improved Cash ISA rates around, I would like to tranfer to either Alliance & Leciester (rate 6.25%) or Icesave (6.05% and a rate guarantee until 2011).
As this is an ISA that I've never transferred previously, is it worth transferring it to A&L for this financial year 06 Apr 08/05 Apr 09 and then transfer it to Icesave for the following financial year 06 Apr 09/05 Apr 10.

Can this be done and is worth (I think it calculate better) implementing a transfer like this?

Now, Halifax has a fixed ISA for 4 years of 6.20%! Would this better?

Look forward to the advise thanks,

Crabman

Hi funkyhitman

Doesn't the form have a box to tick saying "All of my Cash ISA" or something to that effect?

You need to send the transfer form to NS&I Glasgow. They will then close your account, add interest up to the date of closure and send the amount directly to A&L. Don't worry, they will accept this form provided it has been filled in correctly

Regarding evidence of investment - your NS&I account confirmation letter should suffice, I think that's what I sent in.

EDIT - is this the form (Page 5) you're filling in? If so, I'm not sure what you'd put in the amount box. I'd say "entire balance + interest due" but really not sure... anyone?

funkyhitman

Crabman wrote: »

Hi funkyhitman

Doesn't the form have a box to tick saying "All of my Cash ISA" or something to that effect?

You need to send the transfer form to NS&I Glasgow. They will then close your account, add interest up to the date of closure and send the amount directly to A&L. Don't worry, they will accept this form provided it has been filled in correctly

Regarding evidence of investment - your NS&I account confirmation letter should suffice, I think that's what I sent in.

EDIT - is this the form (Page 5) you're filling in? If so, I'm not sure what you'd put in the amount box. I'd say "entire balance + interest due" but really not sure... anyone?

Thanks very much for the help. Yes that is the form i'm filling in. I have not received any postal correspondance from A&L yet so is the postal form you received different from online form? The A&L help pages say that the form should be sent to them, which is why I found it strange you sent your form to NS&I!