Transfer Cash ISAs Discussion Area

innovate

tomthered wrote: »

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.

Yes it does

tomthered wrote: »

Would I be able to transfer and then have an ISA with them at the same rate or is that not allowed..

If your new provider allows transfers-in (and you don't incur penalties at your old provider), you can ask the new provider to transfer your old ISA. You can usually also pay new money (for the current tax year) into the same ISA - but sometimes there is a limited window for such new contributions.

Rather than covering all theoretically possible scenarios, can you tell us

1. where your old ISA is, what interest rate you get on it, for how long, and what, if any, fixed term applies
2. whether you plan to pay your 2012-2013 in a single lump sum now, or later, or whether you plan to make several payments throughout the year

That way we might be able to give you a better response on what is relevant to you.

BTW, did you read the link escapee suggested you should read?

tomthered

Yes I did look at the top rates but needed more answers before considering further and thank you all for your replies.

My Isa is with the Coventry at 3.25% and it is until 31/5/12. I have further money in an AA Instant Access saver account which I think is around 3%. This expires around end of May 2012 too.

Obviously I get more with the ISA because it is tax free and I would be looking to invest a lump sum for the full ISA amount.

boobbby

tomthered wrote: »

Yes I did look at the top rates but needed more answers before considering further and thank you all for your replies.

My Isa is with the Coventry at 3.25% and it is until 31/5/12. I have further money in an AA Instant Access saver account which I think is around 3%. This expires around end of May 2012 too.

Obviously I get more with the ISA because it is tax free and I would be looking to invest a lump sum for the full ISA amount.

If you are sure you wont need the money in an ISA and want flexibility to drip feed in to it either with your annual allowance or make partial or full transfers from other providers when the time comes then it is worth considering Lloyds 3.7% FRISA over two years.

innovate

tomthered wrote: »

Yes I did look at the top rates but needed more answers before considering further and thank you all for your replies.

I was not so much thinking about the top rates, but more of the article on ISA transfers.

OK, assuming that your Coventry ISA is a fixed rate ISA that will mature on 31/5/12, you should be able to have the money transferred after 31/5/12 to any ISA that allows transfers in. Here are some attempts on showing some options available to you. I should stress, these are just examples, you need to do your own research and make your own decisions.

OPTION 1
If you are happy to go for another fix term ISA, you could, for example (dyor) apply for the Santander 1-year fixed rate 3.5% ISA and ask them to transfer your Coventry ISA. This might be an issue though since you do not want to transfer before 1/6/2012, and the Santander ISA might no longer be available from that date - you'd need to check with Santander.

You could also deposit up to £5,640 of new money into that same ISA within 14 days of account opening (nothing thereafter).

OPTION 1A
Same principle as option 1, but you can get a better interest rate if you can commit to a longer fixed rate period. You can find up to 5 year fixed term ISAs - - you have to decide what you feel comfortable with. Many of those longer term ones offer just one single deposit of new money, or within a fixed period after account opening. The Lloyds 3.7% 2-year ISA could be a good option because it has got a lot of flexibility for new money.

OPTION 2
If you do not want to go for a fixed term ISA, you could, again for example (dyor) apply for the Santander 3.30% Direct ISA. You can, again, ask them to transfer your Coventry ISA after 31/5/12, and you can pay in up to £5,640 new money before 6/4/2013.
You have more flexibility with this one, thus the lower interest rate.

OPTION 3
Get your Coventry ISA transferred to a fix term account, e.g. the Santander one mentioned in Option 1.
Then, just for example (dyor) : For your new money, open a Nationwide Flexclusive ISA @ 4.25%. This one has pre-requisites, but they can easily be met if you really want that ISA. This ISA has its own thread with lots of useful information.
You mentioned you have savings money in the AA, so you might like their 3.5% instant access ISA.

Hope this gives you something to think about. A lot depends on how much new money you can pay when , and how long you can commit for - you have to work out some numbers. If a lot, or all, of the £5,640 upfront, you could benefit from Option 1/1A. Option 2 is probably only of interest if you cannot lock your money up for any length of time. Option 3 could give you the best return.

But do some calculations - - there is often just a few pounds between the options, so other factors might help your decision (e.g. are you comfortable with a given bank, do you like all your money in one place etc etc etc)

tomthered

Many thanks for that, its late now but will consider options over next few days.

mrwedders

Hi there, registered to ask a very non-technical question. I'm a money saving newbie!

I opened a cash ISA with my current account bank, Lloyds, during my university course and drip fed money in to it so I had a little something when I was finished. At the start of April I recieved some inheritance money and split it between my current account and the barely-used-anymore ISA, which is when I noticed how terrible the interest rate had become.

So this is my "current year" ISA since I paid in after the tax year change, and I want to transfer it to a new Santander Direct ISA at 3.3% (the top rate that accepts transfers according to this very fine site). I've used my whole allowance for this year.

My really dumb question: On the online application form there's the question, "How are you saving for this tax year", with the options, "Send a cheque", "Move money from Santander current/savings account" or "No new savings".

I'm guessing it's the last one, since I can't add any more funds this tax year, but I thought I'd ask to be sure! Thanks.

savetilibleed

mrwedders wrote: »

My really dumb question: On the online application form there's the question, "How are you saving for this tax year", with the options, "Send a cheque", "Move money from Santander current/savings account" or "No new savings".

I'm guessing it's the last one, since I can't add any more funds this tax year, but I thought I'd ask to be sure! Thanks.

As you have used the max 2012/13 allowance in the terrible Lloyds account and just want to transfer contents plus accrued interest, then yes it the last option. Once the account is open and you know the account number, you will be able to get a transfer form from Santander site, complete it 'online' so to speak, then print off to sign and send away to Santander.

adonis10

Oh here we go, Santander problems.

Set up an ISA for my mother on 6 April, sent all the transfer forms etc. for 2 old ISA's. It's now a month on and only one amount has been paid in. Now, I know that there is a problem because I did the same for my father a week later and both of his old accounts have been closed and the cheques have been paid into Santander, no problems. They both had the same ISA's (Barclays and Halifax) and transferred in the same way. I know that the transfer forms arrived at Sant because one of her accounts has been closed.

Isn't there a 15 day period in which the transfers should take place? I've told my mother to check with the old bank first to ensure that it's been closed etc. I guess the next step is the dreaded Santander customer service!

innovate

Yes, there is a 15 (working-) day industry standard - more on this on the Santander Transferring your cash ISA is easy! page.

If you are certain they received the 2nd transfer form, file a formal complaint with complaints@santander.co.uk. Insist you get interest from no later than working day 16, and ask for compensation for your time needed to chase them.

adonis10

innovate wrote: »

Yes, there is a 15 (working-) day industry standard - more on this on the Santander Transferring your cash ISA is easy! page.

If you are certain they received the 2nd transfer form, file a formal complaint with complaints@santander.co.uk. Insist you get interest from no later than working day 16, and ask for compensation for your time needed to chase them.

They must have done as it was sent in the same envelope as the Barclays one and that transfer has been completed.

I will get her to check that the Halifax one has been closed and then file the complaint.

Thanks