Transfer Cash ISAs Discussion Area

ejv

lkslacka wrote: »

I only have a few days before I will be internet and phone -less until after the new financial year and there is a risk that my current provider will take longer than that to finalise the transfer process... I had been trying to avoid having to transfer if at all possible, while still ensuring I had used up my allowance and secured a better rate. It would have been easier to simply look into this a few weeks ago.

Hi,
How about remitting your savings into that shoddy ISA before this F yr runs out , and then transfer it, provided you don't have a lock-in period (Natwest gives higher rate for transfers).

You cannot add anything to that £1 after 5/4/12

10_66

ejv wrote: »

...So, I'm I right in assuming----our current allowance cannot be split between different providers till the end of current F yr ie there should be only one provider for this F yr's money....but may be split/sliced/minced among any numbers thereafter(ie when it is "old")

I wonder what's the reason behind this?

Yes, you're right in that you must keep this year's subscription with one provider and cannot split it until it becomes a previous year's ISA. The reasoning behind this, I think, is that it helps them keep tabs on you not subscribing more than you should in the current year's ISA.

blueberrypie

lkslacka wrote: »

Sorry my queries were rather specific as I only have a few days before I will be internet and phone -less until after the new financial year and there is a risk that my current provider will take longer than that to finalise the transfer process... I had been trying to avoid having to transfer if at all possible, while still ensuring I had used up my allowance and secured a better rate. It would have been easier to simply look into this a few weeks ago.

In your position, I would put the rest of the current year's allowance into the ISA you've already opened, and then start the transfer process with another provider who offers a better interest rate and allows transfers-in.

Once the transfer process is started, the ISA providers will do the rest, so it won't matter if you can't get on-line. If there are problems (which is unlikely anyway), they'll write to you.

This does mean that you will have to choose a different ISA from the one you were considering, but I think, given the situation, it's probably the best option.

WhiteSpace

Would it make a difference if I closed the existing ISA altogether?

blueberrypie wrote: »

There is a "loophole" which allows you to completely close an ISA which holds subscriptions for the current year and open a second ISA with the current year's allowance. Have a look at the second loophole described in this article: http://www.moneywise.co.uk/news/2009-09-25/could-you-cash-isa-loophole

I think it's worth emphasising that in doing so (a "self-transfer") you'd lose the tax-free status of the money and you'd therefore only be able to invest upto £5340 into the new ISA (the current years allowance), regardless of how much you currently have in your ISA.

pfpf

how long after the old ISA has been cleared of funds should the funds appear in the new account?

transfer: Barclays to Lloyds.

transfer form handed into Lloyds branch 28th feb.

Barlcays ISA gone completely from online banking 7th March PM.

Lloyds ISA still showing £0 online.

thanks.

leaphaze

blueberrypie wrote: »

There is a "loophole" which allows you to completely close an ISA which holds subscriptions for the current year and open a second ISA with the current year's allowance. Have a look at the second loophole described in this article: http://www.moneywise.co.uk/news/2009-09-25/could-you-cash-isa-loophole

I wouldn't really describe this as a loophole since the intention is to have one active ISA for the current tax year. Whether you transfer from an existing ISA to a new ISA (which automatically closes the existing ISA), or whether you close the existing ISA and pay into a new ISA (observing the limits) are both within the rules; although the first is more tax efficient than the second.

DragonQ

Does anyone know if Santander will allow the conversion of last year's 3.3% ISA to their new 3.3% "Direct ISA Issue 9" to avoid the hassle of opening a new account with the same bank and having to fill in transfer forms?

KTF

Probably as I upgraded from that to their new 2 year 4% fixed one over the phone.

Account number, etc stays the same.

greencode

I always get a little confused around this time and this time I promise I will remember what to do!

I currently have 2 ISA's - one with Halifax and one with Santander.

Now when the 1 year introductory offer expires can I therefore transfer both of these ISA's to two new companies to gain a better rate of interest and also open a new ISA for the new tax year?

blueberrypie

greencode wrote: »

I always get a little confused around this time and this time I promise I will remember what to do!

I currently have 2 ISA's - one with Halifax and one with Santander.

Now when the 1 year introductory offer expires can I therefore transfer both of these ISA's to two new companies to gain a better rate of interest and also open a new ISA for the new tax year?

Yes, you can.

Or you can transfer both of your current ISAs to the same provider and open another one for the new tax year. Or you can split them and transfer them to any number of new providers.

Or you can transfer both of your current ISAs to another provider and top up that ISA with funds for 12/13 (depending on t&c).