Transfer Cash ISAs Discussion Area

MO2

My ISA account transfer story with Lloyds TSB:
· The ISA account was opened on 13th of February 2008. I signed the transfer authority form for my exiting ISA provider (Kent Reliance BS) on that day and was assured that the transfer process would be completed within few weeks.
· As that period elapsed, I did not hear or receive any response concerning my ISA transfer application. I then made numerous calls to Lloyds branch and the ISA helpline, but the staff could not update me with any further details regarding the transfer of more than £9700.
· On 20th March. I went to another Lloyds branch and I complained to the branch manager who called the staff at the branch where my ISA was opened to clarify the situation but again to no avail. So, I had to sign a second form for authorising the transfer to Lloyds on that day.
· On 3rd April, I received a letter informing me that the transfer of my ISA funds, which I hold elsewhere, is in progress. This letter did not mention the name of my existing ISA provider.
· Subsequent calls I made to the ISA Centre and further visits to a number of branches in Central London revealed that the transfer request was in fact sent to Skipton BS not to Kent Reliance BS,
· To date (more than 2 months), the funds have still not been credited to my ISA account due to errors made by Lloyds.
· I wrote a complaint letter to Lloyds head office requesting that the interest calculations, at the rate of 6.5%, on my ISA funds to be backdated to the date of my ISA application as compensation to any loss of interest incurred during the delay of the transfer.
· This is also delay the deposit of this tax year allowance.

Christabel

Yogi1309Cat wrote: »

I'd like to point out another problem with transferring to Icesave's top paying ISA.
You can only transfer current ISA's from the following companies - NatWest, Halifax, HSBC, LloydsTSB, Barclays or Nationwide.
If your ISA isn't with one of these companies you can forget it!
They also have to be variable rate ISA's or the same applies.
We have ISA's with Bradford & Bingley so we can't take advantage of this offer. Are there any other Banks out there we can transfer these to for a higher rate of interest?

So why won't B&B allow this transfer? I too am in the same position.

slppee

bristolleedsfan wrote: »

In addition to first response :

Whilst all 3 providers u mention do allow transfers into their products. ( two of which u "may" lose interest while transfer cheques are in transit and/or being banked ) you would need to check that they allow "partial" transfers in as some ISA providers that allow transfers in dont allow partial transfers in.

but,
it says
You can only open ONE ISA account in each financial year. You can pay £3600(e.g.08/09) in one go or pay a small amount to begin with and top it up by instalments as long as the pot is no more than £3600 in the same tax year. If you withdraw money from ISA, you are not allowed to put this amount back until the next financial year. You CANNOT open several ISA accounts in one tax year even if the total of all ISA accounts is not more than £3600. However you CAN have several ISA accounts if they are for different tax years.

Baldur

slppee wrote: »

but,
it says
You can only open ONE ISA account in each financial year. You can pay £3600(e.g.08/09) in one go or pay a small amount to begin with and top it up by instalments as long as the pot is no more than £3600 in the same tax year. If you withdraw money from ISA, you are not allowed to put this amount back until the next financial year. You CANNOT open several ISA accounts in one tax year even if the total of all ISA accounts is not more than £3600. However you CAN have several ISA accounts if they are for different tax years.

You are confusing 'opening' a new Cash ISA with ISA transfers which, while they require that an account is 'opened' with the new ISA provider, into which the whole or partial past year's (where permitted by that provider) Cash ISA funds or the whole current tax year's Cash ISA funds can be transferred - those accounts do not constitute 'opening' an account as far as the 1 per year rule is concerned.

For example, last tax year I opened a new Cash ISA, into which I paid the maximum allowance (then) of £3,000 and consolidated around 30k of past years' ISA funds (fom various providers) through transfers into that account.

The new ISA provider subsequently reduced interest rate levels & made a total mess of transferring one tranche of previous years' funds, which matured after the rest.

I therefore transferred partial previous years' Cash ISA funds from that provider to a different one and the balance of the partial previous years' plus the whole of the current year's funds to yet another provider.

Earlier this year, I transferred both of these accounts to a new provider which was offering a very good fixed rate & which accepted transfers in.

So I had although I had technically 'opened' five Cash ISAs in one tax year, I had only 'opened' one Cash ISA with NEW money, which is what counts.

MKUX3

i am going taway to open a cash isa with B & fixed for 1 year 6.25%

my situation is that
last year i opened fixed B & b isa and the previous year and the previous year and the previous year (all with the 3K each year)
all the rates are now variable which are lower

this is my question can i transfer the four previous year ISA (totalling 12K ) into a FIXED RATE ISA THIS YEAR OR
could i transfer say 3000 from previous year to tsb fixed year another 3K to say Heritable bank?

please help me on how best to transfer

thanks so much

Baldur

MKUX3 wrote: »

this is my question can i transfer the four previous year ISA (totalling 12K ) into a FIXED RATE ISA THIS YEAR OR
could i transfer say 3000 from previous year to tsb fixed year another 3K to say Heritable bank?

Have you read my post above? I thought that it was pretty clear.

1. Yes you could transfer them all (but check that there are no penalties in B&B's small print), to any ISA provider which accepts transfers - whether it's a fixed or variable rate ISA is immaterial.

2. As above, as long as the new providers accept partial past years' fund transfers - forget the £3,000 chunks, that only applied to previous years' allowances - you basically have previous years' ISA funds of £12,000 + interest, which you can split as you like, assuming partial withdrawals are permitted by B&B and accepted by the new providers.

Do Heritable do a Cash ISA?

MKUX3

thanks i will away and look at money supermarket to see what are the best fixed rates and i will phone some in the morning, i will also phone B & B to see if they will allow transfers so i will have 12 K plus interest to transfer.

if anyone has any suggestions of top fixed ones please advise

10_66

If it's a 1 year fixed you're after, Nationwide offer one @ 6.15% permitting transfers in.

Henwen

I've spotted a deal which looks better than the Alliance and Leicester ISA. A&L offers 6.25% but a) hasn't yet dropped after the last Bank of England cut and b) isn't a guaranteed rate although it includes a 1% bonus until 31 May 2009. Moneysupermarket lists Abbey Direct ISA (Issue 2) (tel and internet) as fixed 6.25% until May 2009 then 5.25/4.75% (rate as at 3 March 08). You can transfer old ISAs in too. Minimum investment is £1. Much better as you can relax till next year though there is a worrying reference in the T&Cs to changing the interest rate.....

Just give me a chance to open one before you all flood to Abbey!

Baldur

Henwen wrote: »

I've spotted a deal which looks better than the Alliance and Leicester ISA. A&L offers 6.25% but a) hasn't yet dropped after the last Bank of England cut and b) isn't a guaranteed rate although it includes a 1% bonus until 31 May 2009. Moneysupermarket lists Abbey Direct ISA (Issue 2) (tel and internet) as fixed 6.25% until May 2009 then 5.25/4.75% (rate as at 3 March 08). You can transfer old ISAs in too. Minimum investment is £1. Much better as you can relax till next year though there is a worrying reference in the T&Cs to changing the interest rate.....

Just give me a chance to open one before you all flood to Abbey!

The rate is clearly stated to be 'variable' by Abbey, the only thing which appears to me to be 'fixed' is the 13 months at a 'preferential rate' (whatever that may be). The rate actually only drops to 5.25% IF you have £9,000 or more in the ISA, otherwise it drops to 4.75%...........;)

See HERE for interest rate info.