Transfer Cash ISAs Discussion Area

Geoffsave

I have had a Nationwide e-ISA for a year and the introductory bonus was up, so I was ready to transfer somewhere else. I thought I would cheekily phone up to see if I could have it again at the introductory bonus rate.
Amazingly, of course you can.!!!!
You just apply for a new cash ISA, and when it says do you want to transfer in from outside, tick no, and then a new box pops up saying do you want to transfer in from an exiting NATIONWIDE isa. !!!
Tick yes and away you go.
And URGENTLY the helpful lady at Nationwide told me this issue was closing tomorrow Jun 30th and the new one will be less.
So go for it quick. I just hope someone else picks this up in time. :j

boomish

Geoffsave wrote: »

I have had a Nationwide e-ISA for a year and the introductory bonus was up, so I was ready to transfer somewhere else. I thought I would cheekily phone up to see if I could have it again at the introductory bonus rate.
Amazingly, of course you can.!!!!
You just apply for a new cash ISA, and when it says do you want to transfer in from outside, tick no, and then a new box pops up saying do you want to transfer in from an exiting NATIONWIDE isa. !!!
Tick yes and away you go.
And URGENTLY the helpful lady at Nationwide told me this issue was closing tomorrow Jun 30th and the new one will be less.
So go for it quick. I just hope someone else picks this up in time. :j

Thats odd as I just opened a new one as well, but my old one from last year was only 2.75, where as this one will be 3.10. So nothing to do with last year, as far as I know just the latest offer. The girl on the phone said log out of your banking, open a new ISA via the website and it will ask to transfer the old one into it. and it only takes a few days..! cool eh

Now one thing that might sound very obvious , but my new ISA will open with last years ISA in it, so 5k plus whatever interest, I don't exactly how much as the year finishes today so I presume it calculates it all once it's closed and transferred into the new one.
No if I add cash for this years allowance of £5340 it will make 10k plus, I am right in thinking that whole sum now gets the 3.1 interest?

The_Enforcer

All funds in the new account will earn 3.1% interest for as long as that rate applies.

rhys

Hi: long-time lurker, first-time poster.

I'm sure this has already been answered somewhere in the previous 2117 posts(!) but can't find an exact response. Briefly, do HMRC regulations allow me to open two cash ISAs in the same tax year, provided one of them's just for transfers (leaving the other one to contain 'new money' for that year)? If, as I suspect, the answer's 'yes', it would be great if someone could point me to the exact chapter and verse in the regs that state this.

Ark_Welder

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/SavingsAndInvestments/DG_4016062

http://www.hmrc.gov.uk/leaflets/isa.htm
http://www.hmrc.gov.uk/isa/transfer-isa.htm

http://www.legislation.gov.uk/uksi/1998/1870/contents/made
There are revisions to the above, you are most welcome to browse through them!!

Yawn

Hi everyone,

I am new to this forum but I've read the comments on the page above and went through the links posted. I still have one (simple) question and a mad scheme I would like to have some advice on.

I currently have a Halifax ISA Direct Reward 4 account which I opened in the 2010/2011 tax year when I used up about half of that year's limit. Since April I put in another 150 pounds or so. Now my circumstances have changed for the better and I should be able to save some money regularly for this year at least. I discovered the Starter ISA from The Nottingham which is a monthly ISA saver and pays 5% interest. It, for obvious reasons, does not allow transfers in. The simple question is simply this: having put some money into the Halifax account since April, can I still open a new cash ISA for this tax year?

In case the answer to this is no, I devised the following mad scheme. I withdraw the money I put in last year (and put it with National Savings & Investments) and transfer the 150 pounds I put in since April into a Stocks & Shares ISA. If I understand it correctly, this will reset the balance and allow me to open up a new Cash ISA.

What do people think? Your advice would be much appreciated.

murphydavid

Yawn wrote: »

Hi everyone,

I am new to this forum but I've read the comments on the page above and went through the links posted. I still have one (simple) question and a mad scheme I would like to have some advice on.

I currently have a Halifax ISA Direct Reward 4 account which I opened in the 2010/2011 tax year when I used up about half of that year's limit. Since April I put in another 150 pounds or so. Now my circumstances have changed for the better and I should be able to save some money regularly for this year at least. I discovered the Starter ISA from The Nottingham which is a monthly ISA saver and pays 5% interest. It, for obvious reasons, does not allow transfers in. The simple question is simply this: having put some money into the Halifax account since April, can I still open a new cash ISA for this tax year?

In case the answer to this is no, I devised the following mad scheme. I withdraw the money I put in last year (and put it with National Savings & Investments) and transfer the 150 pounds I put in since April into a Stocks & Shares ISA. If I understand it correctly, this will reset the balance and allow me to open up a new Cash ISA.

What do people think? Your advice would be much appreciated.

I think

No to the first bit. HMRC say "There are limits on the number of ISA accounts you can subscribe to each tax year. You can only put money into one cash ISA and one stocks and shares ISA - one each for cash and stocks and shares. But in different years, you could choose to save with different managers. There are no limits on the number of different ISAs you can hold over time."


Note they say subscribe.


As I see it

You don't have to do anything with last years payments all you need is to put this years payment into stocks and shares to allow you to open another cash ISA this year.


However 150 is a very small amount to play the stock market and with buy sell and or management fees you might want to consider the risk of loosing part or all of the 150 (you can loose the capital as well as the interest) is worth the small amount of extra interest the regular saver will net you in the remaining 8 months. In my experience if you don't know the stock market well the chances of loosing are quite high. So if it was me I would put the new money into the Halifax (its 3% isn't it) until the new tax year.


Mind you transferring your capital into the NS&I inflation proof bond (not because you have to do it to open an ISA) in today's climate may be the best bet. Pro's being you are likely to get more interest in the short term and Cons being you can't touch your money for (is it 5 years).

Lokolo

Yawn wrote: »

I currently have a Halifax ISA Direct Reward 4 account which I opened in the 2010/2011 tax year when I used up about half of that year's limit. Since April I put in another 150 pounds or so. Now my circumstances have changed for the better and I should be able to save some money regularly for this year at least. I discovered the Starter ISA from The Nottingham which is a monthly ISA saver and pays 5% interest. It, for obvious reasons, does not allow transfers in. The simple question is simply this: having put some money into the Halifax account since April, can I still open a new cash ISA for this tax year?

You can only subscribe to one ISA each tax year. Subscribe means to deposit new money into, which you have done in the Halifax ISA.

So no, you cannot as you have already subscribed to the Nottingham one because you have already subscribed to the Halifax one.

Yawn wrote: »

In case the answer to this is no, I devised the following mad scheme. I withdraw the money I put in last year (and put it with National Savings & Investments) and transfer the 150 pounds I put in since April into a Stocks & Shares ISA. If I understand it correctly, this will reset the balance and allow me to open up a new Cash ISA.

What do people think? Your advice would be much appreciated.

Yes it's a little crazy but can be done. It would free up your Cash ISA allowance to £5,340 and you can open one elsewhere (as the old £150 Cash ISA would now be treater as a S&S ISA). You will likely have to fill out a form to do this though, rather than take the money out and then deposit into a S&S ISA.

However, the Nottingham based ISA will likely be 12 months, which means it would take you into next years allowance, half way through the year. Meaning you would have to continue contributing to that ISA next year - even if the rate drops to 0.1% after the regular saver period has ended. You would need to transfer the ISA to a new one to keep up a good rate.

abarthman

Not sure if it has been mentioned in this thread already, but I seem to have made a bit of a rookie mistake with my Halifax ISA transfers.

I've currently got all my ISA money in their Direct Reward 4, which pays 3% plus a 0.2% bonus for having a current account.

I have made at least two internal transfers - most recently from their from their Direct Reward 3 - in order to get the better interest rates offered, but the account number/roll number has always remained the same.

I recently received a letter confirming the 0.2% bonus interest payment on one of my other HBoS savings accounts, but I heard nothing about my ISA.

I, therefore, contacted the Halifax and was advised that I'd have to wait until 7 March 2012 before I received the 0.2% bonus interest payment, exactly 12 months after I transferred my ISA from a Direct Reward 3 to a Direct Reward 4.

I asked when I would receive the bonus interest payment that applied to my Direct Reward 3 (and any earlier incarnations that also paid the 0.2% bonus interest payment) and was advised that the bonus interest payments for these accounts would not be paid, since I did not keep the accounts open for a full qualifying period - 12 months!

With the benefit of hindsight, I should have kept the minimum balance - £1 - in the Direct Reward 3 (and in any earlier incarnations that also paid the 0.2% bonus interest payment) in order to get the 0.2% bonus interest payment(s) after 12 months, but it never occurred to me at the time that I was making the transfer(s) to get a better rate of interest.

I guess what I have learned from this is that if Halifax offer a new ISA (Direct Reward 5?) that pays a better rate of interest within a year of 7 March 2011, is that I should leave the minimum balance - £1 - in the Direct Reward 4 to avoid losing the 0.2% bonus that's payable on 7 March 2012. And then, after the 0.2% bonus interest payment has been paid on 7 March 2012, transfer the balance to the new ISA and close the Direct Reward 4.

I thought I had this ISA stuff figured out, too! :doh:

unhealthyman

This is kind of a stupid/obvious question, but my bonus period on my A&L ISA has run out, but the interest won't be paid till the end of the year. How do I get the Interest if I transfer it? Do they just add it on if I ask to transfer the full amount or will it get paid to this ISA account at the end of the year?