Transfer Cash ISAs Discussion Area

10_66

Snowflake wrote: »

...If you have paid in to a cash ISA then transfer the ISA within the same tax year can you pay in to the 'new' ISA as the other one no longer exists?? or would it count as paying in to two separate ISAs in the same year which I do realize you cant do...

Yes, you can continue to pay in to the ISA into which your current year's funds have been transferred. You just have to make sure that the current year's subscriptions are all in the same ISA, you can still transfer as many times as you like (providing the terms and conditions permit it). Previous years' ISA can be split up.

Snowflake

Thank you very much for your replies-both of which are really helpful x

jampratt

If i pay my full allowance into a cash isa and get interset paid at the end of the tax year, in the new tax year can i then transfer this full amount into a new isa, ie £5340 plus the interest ive earned? And then pay an additional £5340 into the new isa as aprt of the new tax years allowance?

10_66

jampratt wrote: »

If i pay my full allowance into a cash isa and get interset paid at the end of the tax year, in the new tax year can i then transfer this full amount into a new isa, ie £5340 plus the interest ive earned? And then pay an additional £5340 into the new isa as aprt of the new tax years allowance?

Yes, as long as the terms and conditions of the ISA permit adding to it (ie some fixed rate accounts don't allow additions). The interest earned doesn't form part of the amount you're allowed to subscribe.

catwomanga

I wondered if anyone else had been through this and how it panned out. I went into a local bank for another matter, taking my latest ISA statement as a form of ID. The assistant sounded very helpful when she asked me if I'd like to transfer to their newer ISA with a better rate of interest. I said yes, of course, as long as it didn't involve loads of paperwork and she went ahead with it.

A couple of days later I was checking my account online when I noticed all my ISA money had been dumped into my current account, and I had been spending as usual but the cash was being eaten up. There was also a strange small amount of money which went in and out of my account. I called to see what was happening and the lady on the other end (again, very helpful) opened another ISA for me, although I did express concern as one ISA had already been opened and closed by the look of it. I requested she transfer the original amount minus £500, so I didn't go overdrawn and get charged.

I got a letter through the post a day later explaining the ISA money had gone back into my current account as I couldn't open another ISA in a given tax year. Had they phoned to tell my this I would have just left the money in the original account, but I'd phoned to try and sort the situation out before I was informed what was happening.

I checked back online again a few days later to find the same had happened again; my ISA money had been dumped back into the current account. When I spoke to the complaints officer they offered me £100 compensation but no more. Should I take it? Not only have I lost out on interest when the ISA money was being dumped into my current account without my knowledge, but that money should have been ringfenced and safe, but I've spent it.

boobbby

catwomanga wrote: »

I wondered if anyone else had been through this and how it panned out. I went into a local bank for another matter, taking my latest ISA statement as a form of ID. The assistant sounded very helpful when she asked me if I'd like to transfer to their newer ISA with a better rate of interest. I said yes, of course, as long as it didn't involve loads of paperwork and she went ahead with it.

A couple of days later I was checking my account online when I noticed all my ISA money had been dumped into my current account, and I had been spending as usual but the cash was being eaten up. There was also a strange small amount of money which went in and out of my account. I called to see what was happening and the lady on the other end (again, very helpful) opened another ISA for me, although I did express concern as one ISA had already been opened and closed by the look of it. I requested she transfer the original amount minus £500, so I didn't go overdrawn and get charged.

I got a letter through the post a day later explaining the ISA money had gone back into my current account as I couldn't open another ISA in a given tax year. Had they phoned to tell my this I would have just left the money in the original account, but I'd phoned to try and sort the situation out before I was informed what was happening.

I checked back online again a few days later to find the same had happened again; my ISA money had been dumped back into the current account. When I spoke to the complaints officer they offered me £100 compensation but no more. Should I take it? Not only have I lost out on interest when the ISA money was being dumped into my current account without my knowledge, but that money should have been ringfenced and safe, but I've spent it.

What a cockup..just as a matter of interest how much money was transfered from your ISA into your current account as this might give us an idea to advise if the £100 compensation was a fair offer !

Jewel1967

I hope someone can help me with a couple of queries:
I have a cash ISA with C & G which I took out last July & is coming to the end of its introductory rate on 29th July 2011 when the interest rate will fall to a pitiful amount. I have been paying into this ISA monthly but am nowhere near the £5340 limit for the tax year. I am thinking of transferring to the Halifax 3% ISA.
Firstly do I have to wait to transfer until after the 29th July to make sure I benefit properly from the C&G interest as it says its only added annually and
Secondly - can I transfer it all to the Halifax ISA & continue to make monthly deposits for the current year's allowance into that account or is that deemed as paying into two isas?

Manythanks for any assistance- I definitely want to avoid what's happened to poor catwomanga

AirlieBird

Jewel1967 wrote: »

Firstly do I have to wait to transfer until after the 29th July to make sure I benefit properly from the C&G interest as it says its only added annually

You don't have to wait as interest will be paid on closure. Whether you will get the bonus rate will depend on the account T&Cs although there are very few instant access ISAs that I know of that say you have to the money in for the full year to get the bonus rate.

Jewel1967 wrote: »

Secondly - can I transfer it all to the Halifax ISA & continue to make monthly deposits for the current year's allowance into that account or is that deemed as paying into two isas?

Yes you can make deposits in to the new ISA. When you transfer your current year deposits you are also transferring your remaining ISA allowance.

TheMatrix_2

Here is a interesting question for you, If I pay in by cheque my ISA allowance on the 5th April, i.e. the funds have not cleared in time for that tax year, would that payment still count for that tax year or the new tax year starting on the 6th April?

Not that I'm planning to do this, but I am curious.

Jewel1967

Many thanks Airlie Bird - much appreciated