Transfer Cash ISAs Discussion Area

blueberrypie

mobydeek wrote: »

A quick question about the Fixed rate ISAs listed here: moneysavingexpert.com/savings/best-cash-isa

1. Is the "CLOSURE penalty" the same as a Transfer out penalty?

So if I transfer my ISA to another bank, the following year, would I incur this Closure penalty?

As a rule, yes. You need to read the t&c for the account, but usually a fixed-rate ISA does not allow partial withdrawals, and therefore the only way to move any money out of it (withdrawal or transfer) is to close the account.

Of course once the maturity date has been reached, you are free to withdraw/transfer as you wish.

2. For the non-fixed rate ISAs, is there a foolproof way to see what value the interest rate could drop to, if the BoE interest rates drop further?

There is no way to know what the interest rate on a variable-rate ISA will do in the future. And most of them aren't linked to the BoE base rate anyway, so even without any change in the base rate, the ISA provider could cut the rate...but:

Is there anything stopping a bank from giving you a 3% interest rate for 1 month, then cutting it to 0.5% the next WITHIN one ISA year?

Reputation. By that I mean: if an ISA provider made a habit of doing this, they would become known for it, and potential customers would simply go elsewhere. So while in theory the rate on a variable-rate ISA could drop the day after you fund it, in practice the rates hold for a year.

The_Bookman

Greetings all,

My current Halifax ISA (MSE best buy this time last year) comes to an end on 5th April. Am I correct in assuming I can't do anything until 6th April?

Is anyone out there offering a 'scheduled', for want of a better word, product that I can apply for now, but that won't open yet, so I can dump next year's (2012-2013) allowance in immediately on 6th April........and in an ideal world would also accept a transfer in of the Halifax ISA?

Or am I only dreaming?

All thoughts gratefully received.

blueberrypie

The_Bookman wrote: »

My current Halifax ISA (MSE best buy this time last year) comes to an end on 5th April. Am I correct in assuming I can't do anything until 6th April?

It depends which Halifax ISA it is. If it's a fixed-rate one, then you have to wait until it matures. If it's variable-rate, you can go ahead and transfer now. The interest will be calculated up to the date the funds are transferred, and sent to the new ISA provider along with the funds you deposited.

Is anyone out there offering a 'scheduled', for want of a better word, product that I can apply for now, but that won't open yet, so I can dump next year's (2012-2013) allowance in immediately on 6th April........and in an ideal world would also accept a transfer in of the Halifax ISA?

There's no way to know which ISAs will be available and which will be pulled before April 6th, but if you transfer your funds into a variable-rate ISA now, you can certainly add your 12/13 funds to it. There's also at least one fixed-rate ISA currently on offer which is allowing customers to add their 12/13 allowance within a short time from April 6th. Have a look at the first post in this thread: https://forums.moneysavingexpert.com/discussion/401374

The_Bookman

blueberrypie wrote: »

It depends which Halifax ISA it is. If it's a fixed-rate one, then you have to wait until it matures. If it's variable-rate, you can go ahead and transfer now.....

There's also at least one fixed-rate ISA currently on offer which is allowing customers to add their 12/13 allowance within a short time from April 6th.

Thank you very much for your time in replying...........it's the ISA SAVER DIRECT, and it seems (don't laugh!) to be a variable rate, paying 3% gross..........and now forgive me if I'm being thick, but having opened one already in this financial year, I didn't think I could open another one. What am I missing?

blueberrypie

The_Bookman wrote: »

Thank you very much for your time in replying...........it's the ISA SAVER DIRECT, and it seems (don't laugh!) to be a variable rate, paying 3% gross..........and now forgive me if I'm being thick, but having opened one already in this financial year, I didn't think I could open another one. What am I missing?

The Halifax ISA Saver Direct is indeed a variable rate ISA.

You can *open* as many ISAs as you want. You can only *subscribe* - i.e. fund with new money - to one. Transfers don't count as subscribing, so you can open any number of new ISAs and transfer funds into them from other ISAs however you wish. The only requirement is that you must keep the current year's subscriptions together - that is, if you are transferring funds that were subscribed during the current tax year, you must transfer them as a whole.

nargis82

I recently opened a cash ISA but have not yet put any money into it, i have now seen a better deal cash ISA- am i free to simply open it and put my money into that one instead before 5th April?

Thanks

blueberrypie

nargis82 wrote: »

I recently opened a cash ISA but have not yet put any money into it, i have now seen a better deal cash ISA- am i free to simply open it and put my money into that one instead before 5th April?

Yes. (And yep, indeed, you are correct...because the MSE forum won't let me post "yes" on its own!)

The_Bookman

blueberrypie wrote: »

The Halifax ISA Saver Direct is indeed a variable rate ISA.

You can *open* as many ISAs as you want. You can only *subscribe* - i.e. fund with new money - to one. Transfers don't count as subscribing, so you can open any number of new ISAs and transfer funds into them from other ISAs however you wish. The only requirement is that you must keep the current year's subscriptions together - that is, if you are transferring funds that were subscribed during the current tax year, you must transfer them as a whole.

Again, my thanks. I understand what you mean, but assuming you meant the Santander product in your first reply, I see a small problem (unless I'm still being thick)

Their eligibility criteria states

"You can apply if:

• You are at least 16 years of age and a UK resident
• Your opening balance will be at least £1

And one of the following statements is true:

• You haven't paid into a cash ISA in the current Tax year
• You want to transfer funds from another ISA provider into this cash ISA"

I see a problem with "Your opening balance will be at least £1", because I've already paid in my full amount this year, so I surely can't add any 'new' money to fund it? What did I miss?

leaphaze

The_Bookman wrote: »

You haven't paid into a cash ISA in the current Tax year

Hi Bookman, blueberrypie is correct. Halifax's statement would have been clearer if it had said:

You haven't paid into a cash ISA in the current Tax year, unless that cash ISA is transfered into this cash ISA

blueberrypie

The_Bookman wrote: »

I see a problem with "Your opening balance will be at least £1", because I've already paid in my full amount this year, so I surely can't add any 'new' money to fund it? What did I miss?

You didn't miss anything - the t&c are just badly-worded.

If an ISA allows transfers-in, then you can open it with a transfer. I suppose it's possible that one could exist that this doesn't apply to, but I've yet to see it.

The £1 deposit requirement is covered by your transfer. Just submit the transfer request at the same time you open the ISA.