Transfer Cash ISAs Discussion Area

10_66

BigApples84 wrote: »

Hi All, Apologies if I have posted this in the wrong section. I have £4100 in a Santandar eSaver account (3.12%) and my girlfriend has £12100 in a Nationwide Champion ISA (2.01%). I have no ISA. We will be using all funds in about 3 or 4 months time for a house deposit. Is it worth me opening up an ISA, and also for her to transfer to a higher interest earning ISA? Any suggestions on ways to make the most of our money for what will not be a full financial year? Thanks guys! George

If your girlfriend transfers to an instant access ISA, she could get something like 3%, which would mean around an extra £120 in a year, or around £30 in 3 months, so it might be worth her while doing this for the extra £30. If you opened 3% ISA now with your £4100, you'd only gain around £5 extra interest in the 3 months (rather than keeping it in the 3.12% Santander esaver on which you'd pay tax).

xylophone

ChrissyD Your existing provider won't do the transfer - this is down to the new one.
You find an ISA you want that allows transfers in. You fill in the transfer form. The new provider contacts your old one. The transfer is arranged and capital and interest go over to the new provider. The interest is paid at the new provider's rates. So much for the 11-12 ISA.

Come April 6, you may wish open your new ISA with the provider to whom you've recently transferred or you may wish to choose a fresh provider. It's up to you.

leaphaze

schultzee123 wrote: »

Hi

I'm sorry if I've misssed the answer to this as this discussion has been going for a while, but I have a simple (I think) question.

If my husband and I have saved £4k by the end of March 2012 in my current ISA, then transfer it into a new ISA in my name, can I still pay into that one to make it up to £5,640 (the new limit now), and then pay the rest into a new ISA (up to £4,000)?

Then my husband can open a new ISA and pay £5,640 into that as well?

So, situation would look like this:

My ISA: £4k from old ISA, £1640 new money paid in top up to new limit

plus £4,000 totally new money into a new ISA

His ISA: £5640 to be paid in

Is this allowed, and is this the best way to do it?

Thanks

Maria

If you wait until the end of March before transferring (which can take several weeks), you'll be into the next financial year before you can pay in your £1,640. So, amending your details above, the situation could be:

My ISA: £4k from old ISA

£1,640 + £4,000 totally new money into a new ISA

His ISA: £5,640 to be paid in

schultzee123

I see, can I just ask though, if I pay the old £4k into a new ISA, plus another £1,640, can I pay any more in at all?

Maria

leaphaze

schultzee123 wrote: »

I see, can I just ask though, if I pay the old £4k into a new ISA, plus another £1,640, can I pay any more in at all?

Maria

You'll have:
My ISA: £4k from old ISA (2011/2012)

£1,640 + £4,000 totally new money into a new ISA (2012/2013)

His ISA: £5,640 to be paid in

So you can't pay any more into your new ISA until the next year.

But, if you have this £1640 new money available at the end of March, why not pay it into your old ISA, using up your allowance for 2011/2012, then transfer to the new ISA? Then you'll have:

My ISA: £4k from old ISA + £1,640 (2011/2012)

£4,000 totally new money into a new ISA (2012/2013)

His ISA: £5,640 to be paid in

Still some unused allowance in your new ISA, so in this case you could pay more in.

Shawn_2

leaphaze wrote: »

You'll have:
My ISA: £4k from old ISA (2011/2012)

£1,640 + £4,000 totally new money into a new ISA (2012/2013)

His ISA: £5,640 to be paid in

So you can't pay any more into your new ISA until the next year.

But, if you have this £1640 new money available at the end of March, why not pay it into your old ISA, using up your allowance for 2011/2012, then transfer to the new ISA? Then you'll have:

My ISA: £4k from old ISA + £1,640 (2011/2012)

£4,000 totally new money into a new ISA (2012/2013)

His ISA: £5,640 to be paid in

Still some unused allowance in your new ISA, so in this case you could pay more in.

Following this up, I'm in a similar situation:

I have an existing ISA which I opened for 2011/2012 tax year. There is already £5340 in it.

For the coming 2012/2013 tax year, I'm thinking of switching to a new ISA provider.

So if I transfer my existing ISA (£5340) to my new ISA (another provider), can I pay £5640 into this new ISA account to make it £5340+£5640 = £10980?

PS: Of course I could only pay them in after 6th Apr 2012 right?

boobbby

Shawn wrote: »

Following this up, I'm in a similar situation:

I have an existing ISA which I opened for 2011/2012 tax year. There is already £5340 in it.

For the coming 2012/2013 tax year, I'm thinking of switching to a new ISA provider.

So if I transfer my existing ISA (£5340) to my new ISA (another provider), can I pay £5640 into this new ISA account to make it £5340+£5640 = £10980?

PS: Of course I could only pay them in after 6th Apr 2012 right?

You can move your exisiting ISA now or after the 6th April to a new ISA provider if it allows transfers. Then pay next years allowance after the 6April into that ISA. I like Nationwide that allows instant access yet gives a rate of 3.1% calculated on a daily basis while it in the account. To get this rate your minimum amount in the ISA is £1000

Shawn_2

boobbby wrote: »

You can move your exisiting ISA now or after the 6th April to a new ISA provider if it allows transfers. Then pay next years allowance after the 6April into that ISA. I like Nationwide that allows instant access yet gives a rate of 3.1% calculated on a daily basis while it in the account. To get this rate your minimum amount in the ISA is £1000

Great, thanks boobbby!!

VoucherMan

As interest rates seem likely to stay low for a while I'm thinking of transferring my existing ISA to the best two or three year fixed rate I can find when it matures (5th April I think).

Since it probably wont accept extra deposits I'd open a new one year ISA for fresh deposits.

Apart from the drawback of having more than one to keep track of in the future, the interest penalty in the unlikely event that I need to access the money, and the chance that I may miss out on a better deal next year - can't think of any other issues - would this be okay to do?

My biggest issue would possibly be getting as much into my existing ISA before the year end, but having enough to open a new one before the best rates disappear, but so long as there are still some good one year deals around at the end of April it shouldn't be a problem.

mrs_T

I have received a letter today from the BoS saying my ISA direct reward rate finishes on 22/03/12 and will drop to 0.5% from that date. Interest is paid annualy on 5th of April so do I have to wait till then to transfer to a new account or can I do that for 22/03 and then transfer the interest in April?