Transfer Cash ISAs Discussion Area

adonis10

chipp wrote: »

Sorry Adonis10, I didn't spot your original post.

So you have 2 ISAs currently with different providers and you want to consolidate them with Santander, have I got that right?

If so, then apart from the application to open the account, you should fill in 2 transfer forms at Santander. If they only send you one you should be able to pick one up at a branch if you can get to one during opening hours, or else take a copy of the one they do send you or print the one you've found online if it looks broadly similar to the one that comes through the post. It's important that you fill in a form for each account that you want to transfer in, because these get sent (whether electronically or snail mail I have no idea) to the banks who currently hold your ISA money, ie Barclays and Halifax.

I imagine the 14th April deadline is the date by which you need to fund the new account. This will only apply if you're putting in "new money", if the account is being opened purely to receive funds transferred in from another ISA that you already hold, then the important things is to get at least one transfer form and your app form back to Santander before that date. You don't have to do both transfers at the same time, the T&Cs of the Santander ISA (assuming you've gone for the 3.3% Direct ISA Issue 9) are quite flexible in this respect.

Today (6th April) is the first day of the new tax year. If you've not put any "new money" into an ISA today then later in the year, if circumstances permit and you choose to do so, you should be able to up to £5640 to the Santander account you are in the process of opening, or alternatively open a new ISA wherever you want for the "current year" money.

Whatever you do, DON'T CLOSE any existing ISA if you want to retain its tax-free status.

Cheers for the the info.

Re the bit in bold: kinda pointless keeping it open given the fact that the interest rate is 0.5% now (2.8% bonus for a year has now ended) so it won't be used.

DragonQ

Yes but you can transfer it to a new ISA that pays much better rates. Closing it means you lose tax-free status on that money forever so is stupid unless you want to spend the money now.

adonis10

DragonQ wrote: »

Yes but you can transfer it to a new ISA that pays much better rates. Closing it means you lose tax-free status on that money forever so is stupid unless you want to spend the money now.

You haven't read my post properly. I said that I am transferring the isa with 8k in and closing the barclays one and depositing the cheque into the new ISA (the balance is 5.5k so under the annual allowance) and that I will have ZERO more cash to deposit during the year. So, how exactly am I losing the tax free status of that money?

chipp

Hi Adonis10

I appreciate that the advice not to close an account is confusing when the rate it's paying is peanuts and you can do better in a normal savings account pretty much anywhere else, the point we're all trying to make is that you shouldn't withdraw the money or close the account yourself if you want to transfer that money into another ISA, you should allow the transfer process to take its course and that will close the account after the capital and interest has been transferred.

I take your point that if the account balance is under £5460 it makes no odds at the time if you close it yourself and reinvest elsewhere (where it will be seen as "new money") or go through the transfer process, but it's possible that say 6 months down the line you may find some extra cash to open a new ISA with and you might be kicking yourself for having used up your allowance. ISAs don't have to be opened in April, you can do it any time.

Lungboy

Does the minimum deposit for an ISA have to be new money, or will the transferring in of old money qualify? For example the Santander 3.3% ISA requires £2500 deposit, would transferring my full 11/12 ISA be fine with no new money being used?

MB1919

Lungboy wrote: »

Does the minimum deposit for an ISA have to be new money, or will the transferring in of old money qualify? For example the Santander 3.3% ISA requires £2500 deposit, would transferring my full 11/12 ISA be fine with no new money being used?

You'll be fine as long as your old ISA has at least £2500 in it.

On the Santander website:

"*Minimum opening deposit of £2,500 applies. You can open the account with a zero balance if you are transferring in an existing cash ISA (min £2,500). Account balance can drop below £2,500 and be eligible for the above variable rate bonus. **Includes 2.80% tax free/AER (variable) bonus."

leaphaze

adonis10 wrote: »

Applied online for 12/13 ISA yesterday. I was asked how much I'd be depositing but nowhere did it ask about transferring in. I was told that this info would be sent with the welcome letter. However, there is a transfer form on the website so wondered if it may be worth doing that, even though I obviously haven't got an account number yet.

Also, I'd like to transfer in two old ISA's; is this possible?

Anyone else gone through this process with santander?

Hi adonis10, I've just opened an ISA with Santander & transfered some ISA's in. I woiuld suggest you do not wait for the welcome letter since I'm a few weeks ahead of you and I haven't had one. What I did get instead and quicker was an email stating the ISA had been opened and the sort code and account number.

I used the transfer form on the website with a 75% success rate (3 ISAs transfered, 1 appears to be staying put). I think with Santander, it's a waste of time partially filling out the form, I suspect you'll just get it returned. Ring them up to see if you can get the sort code and account number, and if you can, fill out the form completely and send it off.

epm-84

Regarding the address of the existing ISA managers. Are the addresses shown here: http://www.hmrc.gov.uk/isa/isa-managers.pdf the correct ones to use?

For instance for Natwest would you use:
NatWest ISA Office
Princess House
27 Bush Lane
London, EC4R 0AA
opposed to the branch address?

choccyface2006

Good luck to anyone trying to get a transfer to Santander before the deadline, I'm on day 24 of my transfer and getting mightily fed up!

bobblebob

Seems Halifax work weekends. Filled the online form in yesterday to transfer to the new Online ISA from my old Halifax Direct Reward, and its been done just now.

Says this on my statement:

10 Apr 12INTEREST (GROSS)
5.22

I assume that because the old ISA didnt mature until the 19th so its interest from the 5th to the 19th. Why does it say a date in the future tho?