Transfer Cash ISAs Discussion Area

10_66

mrs_T wrote: »

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?

I think the general consensus of opinion is that, as long as you wait until after the anniversary date (so in your case the 22/3) you should be ok transferring out of this account, any interest due (standard and bonus) being paid on transfer/closure.

Neither OH or I have had a letter telling us when the bonus period ends on our Direct Reward ISAs. According the screen print I made when I opened my account it's 12 months from when the funds were received into the account, but someone else on the main thread covering this subject (Halifax ISA Direct Reward thread) has said the date they were given for when their bonus interest was to be paid was the anniversary date of when the account was opened, rather than when the funds were received. We opened our accounts on the 5th March and funds were received on the 14th March, either way, I'd have expected the letter by now.

10_66

VoucherMan wrote: »

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

You mention opening a new one year ISA for fresh deposits, but if you intend to open a one year fixed for the new tax year, don't forget you may not be able to add to this after the initial deposit.

VoucherMan

10_66 wrote: »

You mention opening a new one year ISA for fresh deposits, but if you intend to open a one year fixed for the new tax year, don't forget you may not be able to add to this after the initial deposit.

I'd make sure it was one that accepted further deposits, like the Halifax one I'm with now.

But I assume I'd be okay otherwise.

andrea1968_2

I've got about £6500 in an ISA and have used this years full allowance, my current providers has written saying the interst rate will drop at the end of this month.

If I transfer to a new provider can I only put in £5340 pre April or the full amount, and if I waited until April and then open a new account does the transferred amount mean I cant pay anymore in because I've met the new years allowance already.

Also, if my current provider has a good offer can I just transfer into a new account there or does it have to go to a totally different bank ?

Sorry if the're obvious questions and they've been asked before but I'm struggling getting my head around the transfer situation.

boobbby

andrea1968 wrote: »

I've got about £6500 in an ISA and have used this years full allowance, my current providers has written saying the interst rate will drop at the end of this month.

If I transfer to a new provider can I only put in £5340 pre April or the full amount, and if I waited until April and then open a new account does the transferred amount mean I cant pay anymore in because I've met the new years allowance already.

Also, if my current provider has a good offer can I just transfer into a new account there or does it have to go to a totally different bank ?

Sorry if the're obvious questions and they've been asked before but I'm struggling getting my head around the transfer situation.

Nationwide offer 3.1% instant access. You could transfer the full amount you have saved at present and add next years after the 6th April. You will need to open a card account like a flex account first then you can transfer your present ISA saving into the new ISA and add any amount up to your allowance to the ISA via the flex account after April. Two reasons for suggesting an instant access account is that if a new provider offers a much better interest rate you can transfer without penalty and have the opertunity to take out money also without penalty.

riko_uk

Hi All.
Sorry if I am asking basic questions but I have only just started with ISA's and am pretty confused :S

I opened my first ISA on Feb 1st 2011 with Santander and filled it with that years allowance. So far this year I have not added anything to the account and have not opened an ISA with anyone else. The bonus rate on my account has now run out so after I get my interest for this year I would like to transfer the money.

I was looking at the virgin ISA that has an AER of 2.85% and allows transfers in but I am confused about what my options are. Can I open this account this tax year even though I still have the ISA with Santander but have not paid anything in? Or would I be best to pay in this years allowance to my current Santander ISA, wait till after the tax year ends then open an Virgin account and transfer all the money?

Thanks for any help!

Graham

leaphaze

riko_uk wrote: »

Hi All.
Sorry if I am asking basic questions but I have only just started with ISA's and am pretty confused :S

I opened my first ISA on Feb 1st 2011 with Santander and filled it with that years allowance. So far this year I have not added anything to the account and have not opened an ISA with anyone else. The bonus rate on my account has now run out so after I get my interest for this year I would like to transfer the money.

I was looking at the virgin ISA that has an AER of 2.85% and allows transfers in but I am confused about what my options are. Can I open this account this tax year even though I still have the ISA with Santander but have not paid anything in? Or would I be best to pay in this years allowance to my current Santander ISA, wait till after the tax year ends then open an Virgin account and transfer all the money?

Thanks for any help!

Graham

Put your money where it can earn the most interest, which, since the bonus on your Santander ISA has run out, must be the Virgin ISA. And when you've opened your Virgin ISA, transfer your Santander ISA to it asap to get the most interest.

10_66

riko_uk wrote: »

...I opened my first ISA on Feb 1st 2011 with Santander and filled it with that years allowance. So far this year I have not added anything to the account and have not opened an ISA with anyone else. The bonus rate on my account has now run out so after I get my interest for this year I would like to transfer the money.

I was looking at the virgin ISA that has an AER of 2.85% and allows transfers in but I am confused about what my options are. Can I open this account this tax year even though I still have the ISA with Santander but have not paid anything in? Or would I be best to pay in this years allowance to my current Santander ISA, wait till after the tax year ends then open an Virgin account and transfer all the money?...

M&S and Nationwide offer 3% and 3.10% respectively. You can open a new ISA this tax year into which you can pay this year's subscription, eventhough you have an existing ISA with someone else from a previous year. There wouldn't be any point in adding this year's subscription to your Santander ISA if the bonus has expired. Once you open your new ISA (providing you choose one to which you can transfer), transfer the Santander one to it (by completing the transfer form from your new provider, not by closing and transferring it yourself).

Cleveleys

I have several cash ISAs with different providers including one opened in the current tax year.
Today I went to Yorkshire Bank to make an appointment to transfer an existing ISA to their current 4 year fix.
I was told I couldn't do it because I had already subscribed to a new ISA this tax year. The money I want to transfer is not part of this year's ISA - I said I thought they were wrong but they insisted the rules do not allow me to do it.

They can't be right - can they?

10_66

Cleveleys wrote: »

Help - sorry but am not sure how to post a new query.

I have several cash ISAs with different providers including one opened in the current tax year. Today I went to Yorkshire Bank to make an appointment to transfer an existing ISAs to their current 4 year fix. I was told I couldn't do it because I had already subscribed to a new ISA this tax year. The money I want to transfer is not part of this year's ISA - I said I thought they were wrong but they insisted the rules do not allow me to do.

You can definitely open an ISA into which you can transfer existing ISAs. You can only subscribe this year's allowance into one, but you can still transfer it elsewhere during this year if you want to (as long as its terms and conditions permit). So, if you have subscribed this year's allowance elsewhere, there is nothing to stop you (apart from its terms and condtions) transferring previous years' anywhere you want to.