Transfer Cash ISAs Discussion Area

badger09

markj_87 wrote: »

Hi all,

I have money from previous tax years in a Halifax ISA which 'expires' in a few days. I am yet to use my allowance for this new tax year - I'm thinking of opening the 1 year fixed 3.5% Santander ISA - will be I be able to both open the account with the ISA limit amount, and then transfer my Halifax ISA into the same account on top? Or does this account only allow one single payment in?

Thanks.

Yes you can do what you're suggesting .

The only condition is that the transfer request form, which I think you still complete online but have to print & sign, has to be received by Santander within 14 days of opening the account.

This account allows multiple transfers in (form must be received within 14 days of opening) and a payment of up to £5640, assuming you haven't already paid (new money) into an ISA elsewhere since 6th April

adonis10

Hmm. Appled online for a santander isa for my mother and father, one after the other, on Thursday and yesterday received two 'confirmation' emails; one to mother saying that her account had been opened and included new account details (sort code and a/c number) and another email to father asking for further ID. Now this is concerning given the application process was exactly the same. Why would they require proof of ID from one person and not the other? Am a little suspicious about how genuine this is.

Anyone else had the same issue?

Michael_Campbell

I have several questions which I don't think are covered in the ISA Q&A.

I have some money in a banks instant access ISA which as of April 3rd is at 0.5% interest, I used my full allowance last year, and have not contributed to it this new tax year.

1. Obviously I want to increase the interest rate, if I get that bank to change the account type from instant access ISA version 17 to version 18 (or whatever), does that mean that the money is then tied to that account for the whole of this tax year or could I then transfer it to another bank in this tax year should the offered rate improve?

2. If I transfer the ISA to another banks instant access ISA for example Santander, would the money then be tied to Santander for the rest of this tax year, or could I move it again and again to keep getting the best interest rate?

3. Does this depend on not contributing in to that ISA in this year?

4. If that is the case, then should it be recommended that old tax year ISA cash, and new tax year ISA cash be kept seperate. even if it is in a different ISA account with the same bank?

5. In this tax year say I get to November and I have contributed the full allowance in to a new ISA account, but the bank slashes the rate - could I then transfer that cash to another bank AS LONG AS I do not contribute to it any further.

Please only answer my questions if you know your answers to be factually correct, and thanks in advance for any reply.

Spiggle

Michael_Campbell wrote: »

I have several questions which I don't think are covered in the ISA Q&A.

I have some money in a banks instant access ISA which as of April 3rd is at 0.5% interest, I used my full allowance last year, and have not contributed to it this new tax year.

1. Obviously I want to increase the interest rate, if I get that bank to change the account type from instant access ISA version 17 to version 18 (or whatever), does that mean that the money is then tied to that account for the whole of this tax year or could I then transfer it to another bank in this tax year should the offered rate improve?

2. If I transfer the ISA to another banks instant access ISA for example Santander, would the money then be tied to Santander for the rest of this tax year, or could I move it again and again to keep getting the best interest rate?

3. Does this depend on not contributing in to that ISA in this year?

4. If that is the case, then should it be recommended that old tax year ISA cash, and new tax year ISA cash be kept seperate. even if it is in a different ISA account with the same bank?

5. In this tax year say I get to November and I have contributed the full allowance in to a new ISA account, but the bank slashes the rate - could I then transfer that cash to another bank AS LONG AS I do not contribute to it any further.

Please only answer my questions if you know your answers to be factually correct, and thanks in advance for any reply.

Hi,

1. No, it is not tied to that bank for the year provided you are changing it from one easy/instant access to another. If this is a Halifax instant ISA, I upgraded mine using the online facility very easily. As I haven't subscribed (paid new money) into it this year it is getting a better rate while options for other accounts are considered.

2. No, it would not be tied if moved to another easy access account. Yes, it could be moved again if you wished as it's an easy access account.

3. Matured ISA funds and current year ISA funds are treated differently for transfers. You could, if you wanted to, split the mature ISA funds and transfer part to one ISA and the other part to another. Transferring mature funds does not count in any way towards your £5,640 allowance for 2012-13. The current year ISA funds may be transferred to another provider but everything subscribed in the current year must be kept together. Once the financial year ends on 5th April 2013 the ISA funds will be mature and can then be split as above.

4. If you have a best paying easy access ISA that accepts transfers in then that is the best place for the mature funds. The only reason to have a separate easy access ISA for current year funds is if the best paying account does not accept transfers in. So, the Cheshire BS offer an easy access account paying 3.5% but they don't accept transfers in, which would be the best for your current year funds (there is also the Nationwide paying higher rate but requires current account etc). Santander offer 3.3% and accept transfers in so you could transfer your mature fund to them. It is up to you whether you pay your current year into Santander or want get a higher rate elsewhere. When you transfer the form from the new provider will have a space to say which year's money you want to move. Assuming your mature fund is all from 2011-12 that is what you would put on the form. If you decided to put both the mature and current year into for example Santander and then wanted to move it again later in the year you would put down 2011-12 and 2012-13.

5. As I said above, provided you move the whole of current year subscriptions together in one lump, you could move it in November if the bank you were with slashed the rate. In fact, if you had only contributed say £3k by November, provided you move all of the £3k together to another provider then you are still able to subscribe the further £2,640 to use your allowance up.

All the above advice is factually correct but it is up to you to check specific terms and conditions of accounts you choose. NEVER withdraw your ISA funds yourself (unless you want to spend it) and always use the transfer form from the new provider to effect the transfer within the tax free wrapper.

Hope that helps,
Spigs

rendo84

Hi

Some of the replies directly above cover some things for myself but I'm still confused about the whole ISA transfer thing.

I currently have an old e-Isa with Natwest and the rate is crap. If I moved the full amount to another provider would this class as me using this years allowance?

Also, say I transferred £10k, the limit for a Cash ISA is £5.6k so will this mean that the £10k goes into a Stocks and Shares ISA?

I've not paid any money into my NatWest isa so far this tax year, so if I transferred the full balance over to Cheshire, for example, could I then open another ISA with Santander and start paying into it monthly without causing an issue?

Thanks in advance

Spiggle

rendo84 wrote: »

Hi

Some of the replies directly above cover some things for myself but I'm still confused about the whole ISA transfer thing.

I currently have an old e-Isa with Natwest and the rate is crap. If I moved the full amount to another provider would this class as me using this years allowance?

Also, say I transferred £10k, the limit for a Cash ISA is £5.6k so will this mean that the £10k goes into a Stocks and Shares ISA?

I've not paid any money into my NatWest isa so far this tax year, so if I transferred the full balance over to Cheshire, for example, could I then open another ISA with Santander and start paying into it monthly without causing an issue?

Thanks in advance

Transferring your mature/old ISA does not count towards the current year allowance at all or in any way.

There is no limit on the amount of mature funds for transfer. Transfer funds are entirely separate from the £5640 allowance for new money/subscriptions in this 2012-13 financial year.

No, you will not be transferred into a stocks & shares ISA which is a completely differnet product to a cash ISA.

Yes, you can transfer mature funds into one ISA and then open a separate ISA for 2012-13 subscription (new money).

Hope that helps,
Spigs

alternate

adonis10 wrote: »

Hmm. Appled online for a santander isa for my mother and father, one after the other, on Thursday and yesterday received two 'confirmation' emails; one to mother saying that her account had been opened and included new account details (sort code and a/c number) and another email to father asking for further ID. Now this is concerning given the application process was exactly the same. Why would they require proof of ID from one person and not the other? Am a little suspicious about how genuine this is.

Anyone else had the same issue?

Normal. Used to be you had to provide ID on all savings accounts, money laundering laws, but since the age of the internet they try and check that ID info online and provide instant account opening. Just means one of your parents was in their database and one wasn't.
Banks use different databases and could be one parent once had an account with the bank, or maybe a bank years ago that got merged in with the current bank.
Usually just the case of sending a couple of utility bills etc.

greencode

I'm a little confused! I had a Santander ISA for the 2011-12 tax year and including interest added at the end of that year amounted to £5,502.23. As this was their old ISA I upgraded to their 3.3% ISA for this tax year. I then added my allowance of £5640 for this year and I though I would also be able to top up the amount I had amassed from last tax year i.e. add a further £137.77 to bring it up to £11280 in total.

I called them to ask whether this was possible and they said it wasn't. The person I spoke to spoke to a few other people their who all said the same thing.

Is this correct?

I though I was allowed to top up the previous year's amount to the new allowance and then also create a new ISA for this tax year?

badger09

greencode wrote: »

I'm a little confused! I had a Santander ISA for the 2011-12 tax year and including interest added at the end of that year amounted to £5,502.23. As this was their old ISA I upgraded to their 3.3% ISA for this tax year. I then added my allowance of £5640 for this year and I though I would also be able to top up the amount I had amassed from last tax year i.e. add a further £137.77 to bring it up to £11280 in total.

I called them to ask whether this was possible and they said it wasn't. The person I spoke to spoke to a few other people their who all said the same thing.

Is this correct?

I though I was allowed to top up the previous year's amount to the new allowance and then also create a new ISA for this tax year?

On this occasion Santander are correct

The cash ISA subscription allowance for last year was £5340, for this year its £5640.

greencode

badger09 wrote: »

On this occasion Santander are correct

The cash ISA subscription allowance for last year was £5340, for this year its £5640.

Thanks for clarifying this. So if for example next year the allowance was £6k I would be able to take out a new Ida to that amount, keep this years at £5640 and not be able to top that one up?