Transfer Cash ISAs Discussion Area

Lokolo_2

scott_w wrote: »

i have £4500 in a santander isa,the rate is going to drop to 0.5%,why can i not physically remove the money,and open a new one at there 3.3% ?

Well, you CAN do this if you really want to, it's only not recommended as withdrawing and depositing that money will make it count as "new" money so it will count towards your annual ISA allowance that tax year.

You can transfer your existing ISA to Halifax and get 3% interest, and then also open another ISA such as Santander 3.3%, it depends on the amount you are able to save as to which is the better option for you.

chrisnrach

Hi all we are Max'd up 2010 -2011 and have every intention of moving our £5100 each out of the Santander into the Halifax. We would also like to open another new Santander for 2011 - 2012, with there current offer of 3.3%, however, the offer ends at the end of March. (before the new tax year 6th April) Does that disqualify us from opening a new A/C over the next day or so with £1 and then adding the £5339 on or after the 6th April

Lokolo_2

chrisnrach wrote: »

Hi all we are Max'd up 2010 -2011 and have every intention of moving our £5100 each out of the Santander into the Halifax. We would also like to open another new Santander for 2011 - 2012, with there current offer of 3.3%, however, the offer ends at the end of March. (before the new tax year 6th April) Does that disqualify us from opening a new A/C over the next day or so with £1 and then adding the £5339 on or after the 6th April

Since you've already used your full Cash ISA allowance and contributed to a Cash ISA this tax year, you are not allowed to fund another ISA until the next tax year, even by £1 or 1p as this breaks HMRC ISA rules!

However...you CAN open the Santander ISA WITOUT making a deposit, open it and then fund it when the new tax year begins, this is fully possible and then you are following ISA rules :j

hostertlady

thanks lokolo,
i have over 10.000 in my santander ISA, do you think it is best if i leave it there for now or shall i open a new ISA somewhere and then ttranfer the moeny over...
the rates all seem the same at the moment though dont they?

Lokolo_2

hostertlady wrote: »

thanks lokolo,
i have over 10.000 in my santander ISA, do you think it is best if i leave it there for now or shall i open a new ISA somewhere and then ttranfer the moeny over...
the rates all seem the same at the moment though dont they?

Are you earning 2.75% on your ISA then? you can still transfer it to Halifax to get 3%, this might not sound much better but it can work out at quite a bit of extra interest for £10k!

So I would transfer now, you can always transfer again if something better comes up as that ISA is instant access :j

hostertlady

Lokolo_2 wrote: »

Are you earning 2.75% on your ISA then? you can still transfer it to Halifax to get 3%, this might not sound much better but it can work out at quite a bit of extra interest for £10k!

So I would transfer now, you can always transfer again if something better comes up as that ISA is instant access :j

so all i do is go into a halifax BS with my ISA details and say I want to transfer my money in... is that all i do?

rb10

hostertlady wrote: »

so all i do is go into a halifax BS with my ISA details and say I want to transfer my money in... is that all i do?

Yes ... although you'll struggle to find a building society anywhere ... they've been a bank for about 15 years now.

Lokolo_2

rb10 wrote: »

Yes ... although you'll struggle to find a building society anywhere ... they've been a bank for about 15 years now.

Haha Love it :j :rotfl:

On a serious note: You should also be able to initiate the transfer online or over the phone if that's easier for you though.

hostertlady

rb10 wrote: »

Yes ... although you'll struggle to find a building society anywhere ... they've been a bank for about 15 years now.

how funny i very nearly said bank but then i thought that is sounded better if i said halifax Building Society LOL x

murphydavid

Lokolo_2 wrote: »

Are you earning 2.75% on your ISA then? you can still transfer it to Halifax to get 3%, this might not sound much better but it can work out at quite a bit of extra interest for £10k!

So I would transfer now, you can always transfer again if something better comes up as that ISA is instant access :j

£25 a year.- (0.25x10000/100)