Transfer Cash ISAs Discussion Area

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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.
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Just to clarify, as this doesn't appear to have anything to do with ISA allowances. (?) You can't top-up previous years ISA subscriptions. Using your example, even if you'd only deposited £100 in the 2011-12 tax year, once the end of that tax year has passed (you say you'd already opened a new ISA and deposited the new 2012-13 ISA allowance in it) then you can't go back and top up the previous years ISA subscription, which you seem to be implying.

Just to add, the ISA allowance is the amount of money you can physically deposit in that ISA, irrespective of the interest. So, if you deposited £5500 in this tax year (limit being £5640) and received £220 interest to bring the total to £5720. You can still add the further £140 of your yearly ISA allowance before the end of the tax year.

greencode wrote: »

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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?

You can only top up the current years subscription to whatever the allowance is for the tax year, providing you do it before the end of the tax year.

DragonQ

Indeed, if you don't use an ISA allowance, you lose it.

savetilibleed

I'm transferring an ISA from ING Direct to Santander 3.3% Major ISA.

Form off to Santander 27 March, spoke to ING on phone 4 April - seems I forgot to sign form. so they were sending back to Santander and explanation letter would follow.

A few days later I called ING because I got a Direct Debit confirmation as though I had set up a new account! There was confusion when I called, but something about two usernames. Two days later I got a new pin!

A few days later I called Santander who could tell me nothing WRT transfer except they recommended a new transfer and do it in branch. ING ditto. I did this in branch on 12 April where I definitely signed. Form went off electronically to their head office. I asked how can it then have my signature. Apparently they use a signature they have on file. ING could only use that if it is authenticated and if not it would be rejected Hhhhhhh.

Now - ING - this DD - they closed the ISA they couldn't transfer and reopened another with a different account number. It took me to get to someone more senior to get that from them. But why do that? Something about 2 ISAs for the same year couldn't be under the same username.

It now means the second transfer form of course has the original account number (how was I to know as this explanation and later still, the letter of explanation arrived well after I did the second form). I am assure that this won't affect the transfer. :mad:

adonis10

Transferred from Barclays to Santander; sent off tfr form to Santander and today received final statement from Barclays which says that money transferred out on 19th April which is fine but checked Santander a/c today and balance £0. That's 7 working days; should it take this long?

boobbby

adonis10 wrote: »

Transferred from Barclays to Santander; sent off tfr form to Santander and today received final statement from Barclays which says that money transferred out on 19th April which is fine but checked Santander a/c today and balance £0. That's 7 working days; should it take this long?

Be patient .. all will be fine as Barclays have received the transfer form from Santander and sent the cheque which always seems to take a while to clear !!

tomthered

Hi guys, am I right in understanding that you can have an ISA from a previous year and then set up a new one that is also tax free? If so how do you go on getting a good rate for the existing monies? Do you just transfer it and add the new allowance?

Effectively would you have say £5200 from the old ISA plus a new ISA allowance of £5600 totalling £10800 earning tax free income say of 3.3% or whatever??

Should also ask do I have to wait until last years matures in May 2012 before transferring or are you allowed to transfer before if the rate is better? I have an existing Coventry 3.3% ISA from last 2011-2012 tax year.

Never understood this point hence why I am asking.

escapee

Hi tomthered

Each financial year you are given a tax free ISA allowance which you can save with various financial institutions (bank, building society etc) all of whom offer a varying interest rate.

You have the option of keeping your existing isa with Coventry if you are happy with the 3.3% it's currently achieving or you can look for an account either with Coventry or another provider which allows 'transfers in' this means you can move this money into a different pot and generate extra interest. As we are now in to a new tax year, you also have the option opening a new isa to the maximum of £5,640.

The 3.3% rate you have at present isn't too bad for an instant access isa, better rates can be found if you wish to tie up your money for between 1 and 5 years with a fixed isa but you are heavily penalised if you withdraw any money from a fixed rate account within the allocated timeframe.

Have a look here: http://www.moneysavingexpert.com/savings/cash-isa-transfers

This page has the best offers available at present for both instant access and fixed rate isas.

innovate

escapee wrote: »

Have a look here: http://www.moneysavingexpert.com/savings/cash-isa-transfers

and here - often a lot more up-to-date / a lot more detailed in terms of available offers than the article on the main site.

tomthered

forgive me for being thick but does that mean I can keep the original ISA in its tax free wrapper earning 3% and set up a new one in the next financial year at whatever % rate is available. Would I be able to transfer and then have an ISA with them at the same rate or is that not allowed. Sorry I cant quite grasp it, but thanks for the replies.