Transfer Cash ISAs Discussion Area

boobbby

captain_mainwaring wrote: »

Originally Posted by captain_mainwaring
What I will need to do is get the new provider to transfer for me on one ISA and the 2nd one close and return to my main bank account and then start another in my wifes name with another new provider.
Why? Isn't that a waste of your wife's allowance. Why not transfer in your name and then you have your wife's allowance to put more money in an ISA.

Thanks for the reply. On the second part of your reply: I will do this because I understand that you can only have 1 ISA per year in one name so, I will have one and my wife will have the other. Is that correct?
Regards Captain

I assume the reason to cancel one of your ISA's is because you cannot afford to open a new ISA in your wifes name this tax year. What would make better sense is that you transfer your two ISA's into a new ISA after your bonus period (you could transfer before if its not a FRISA) and add to it next tax year and your wife starts an ISA this tax year so she can add to it next tax year.

captain_mainwaring

boobbby wrote: »

I assume the reason to cancel one of your ISA's is because you cannot afford to open a new ISA in your wifes name this tax year. What would make better sense is that you transfer your two ISA's into a new ISA after your bonus period (you could transfer before if its not a FRISA) and add to it next tax year and your wife starts an ISA this tax year so she can add to it next tax year.

Both ISA's are atm in my name. Both will be offering low fixed rates if I leave them where they are. (One's with Cheshire and one is with AA) Cheshire's rate is dropping but their new ISA Issue 1 is higher but cannot transfer in (their rules). So, I was going to transfer from Cheshire to Metro Bank fixed rate ISA. The AA one is a rubbish rate if I leave it there so I was going to close this one and open a new one with Cheshire (Issue 1) in the wifes name.
Hope this is clear and makes sense.
Now you see why I get confused! lol

boobbby

captain_mainwaring wrote: »

Both ISA's are atm in my name. Both will be offering low fixed rates if I leave them where they are. (One's with Cheshire and one is with AA) Cheshire's rate is dropping but their new ISA Issue 1 is higher but cannot transfer in (their rules). So, I was going to transfer from Cheshire to Metro Bank fixed rate ISA. The AA one is a rubbish rate if I leave it there so I was going to close this one and open a new one with Cheshire (Issue 1) in the wifes name.
Hope this is clear and makes sense.
Now you see why I get confused! lol

Nobody normally cancels an ISA as any money paid in cant be replaced into this tax free fund. Instant ISA funds such as Nationwide 3.1% and Santander 3.3% and both allow transfers and offer a good return but obviously up to you how you decide on your savings.

swanduck_2

Hi,
This may be in the wrong place but I don't know where to post a new question.

I am going to transfer all my old ISAs into one place but does it matter if I do it now before the end of the year or are there usually better deals once the new tax year starts?

badger09

swanduck wrote: »

Hi,
This may be in the wrong place but I don't know where to post a new question.

I am going to transfer all my old ISAs into one place but does it matter if I do it now before the end of the year or are there usually better deals once the new tax year starts?

This is as good a place as any:p

You don't say whether you want to lock your old ISAs away in one (or more) Fixed Term accounts, or whether you want to be able to access some or all of your savings. You could hedge your bets and split - some into best Fixed Rate for however long you want to tie up, and some into best instant access which allows xfers in. Then, if better rates come along, you can xfer again

There may be better deals around just after 6th April, but very often they are targetting 'new' money only.

How's your crystal ball ? :rotfl:

leaphaze

swanduck wrote: »

Hi,
This may be in the wrong place but I don't know where to post a new question.

I am going to transfer all my old ISAs into one place but does it matter if I do it now before the end of the year or are there usually better deals once the new tax year starts?

Quick question - quick answer. The institutions know there's a rush of customer's money before the financial year end, i.e. now, so they tend to have their highest rates now. In the past, many have dropped their rates for new accounts once the deadline has past. If it was me, I'd wouldn't hang around.

leaphaze

captain_mainwaring wrote: »

Both ISA's are atm in my name. So, I was going to transfer from Cheshire to Metro Bank fixed rate ISA. The AA one is a rubbish rate if I leave it there so I was going to close this one and open a new one with Cheshire (Issue 1) in the wifes name.
Hope this is clear and makes sense.
Now you see why I get confused! lol

Hi captain_mainwaring, since you have 2 ISA's then either:

A: one ISA is for a previous tax year and the other ISA is for this tax year;

B: both ISAs are for previous tax years;

C: both ISAs are for this tax year and you're in trouble!


For cases A and B, the rules allow you to transfer both ISAs and they will remain in your name, for case C, you've strayed outside of the rules so close one ISA asap!

captain_mainwaring

leaphaze wrote: »

Hi captain_mainwaring, since you have 2 ISA's then either:

• A: one ISA is for a previous tax year and the other ISA is for this tax year;

• B: both ISAs are for previous tax years;

• C: both ISAs are for this tax year and you're in trouble!

For cases A and B, the rules allow you to transfer both ISAs and they will remain in your name, for case C, you've strayed outside of the rules so close one ISA asap!

ATM both ISA's are in my name but for different years. (no problem there) Both ISA rates are dropping if I leave them where they are so I intend to transfer one (in my name) to another provider. The second ISA (also in my name but differenet years) I intend to close (because the provider I want to use doesn't allow transfers in on this issue only, new business) and return to joint account and then start a new ISA in the wifes name with another provider. So we will both have one each with different providers.
Hopefully this is ok.
I therefore presume 'B' is the answer

leaphaze

captain_mainwaring wrote: »

ATM both ISA's are in my name but for different years. (no problem there) Both ISA rates are dropping if I leave them where they are so I intend to transfer one (in my name) to another provider. The second ISA (also in my name but differenet years) I intend to close (because the provider I want to use doesn't allow transfers in on this issue only, new business) and return to joint account and then start a new ISA in the wifes name with another provider. So we will both have one each with different providers.
Hopefully this is ok.
I therefore presume 'B' is the answer

Ok, I can see you're determined to fund this new ISA that doesn't allow transfers in. Other than putting new money in, the only way to fund it is to close one of your ISAs. You'll lose the tax-free status of that pot of money, but if you're unlikely to have new new money to put into an ISA, then your approach makes sense since you'll be earning more interest.

Still not sure where the idea of opening this new ISA in your wife's name fits in: you could do this in your own name; no extra interest for doing this. The only advantage I can see is if you want to split the risk of the institution failing between you, but then you only need to worry about this if you have more than £80k.

captain_mainwaring

leaphaze wrote: »

Ok, I can see you're determined to fund this new ISA that doesn't allow transfers in. Other than putting new money in, the only way to fund it is to close one of your ISAs. You'll lose the tax-free status of that pot of money, but if you're unlikely to have new new money to put into an ISA, then your approach makes sense since you'll be earning more interest.

Still not sure where the idea of opening this new ISA in your wife's name fits in: you could do this in your own name; no extra interest for doing this. The only advantage I can see is if you want to split the risk of the institution failing between you, but then you only need to worry about this if you have more than £80k.

Why will I lose the tax free status of that pot of money? It's been in that particular ISA for 2 years surely, (and don't call me Shirley!) I still have 2 years interest whether I take it out or leave it in.
You see, this is why I think ISA's are confusing.
With the rubbish rates at the moment I feel as if I just as well leave it in a joint account. Is 3/4% really worth it? Unless of course you have loads of money! Which I don't.
Onward and upward. Thanks for your comments.