Transfer Cash ISAs Discussion Area

rb10

elementaryuser wrote: »

Ok Noobie question please help! I have an existing ISA from last year now on v poor rate so want to transfer it. I also want to open one for this year. The best one I have found for this year doesn't take transfers. So can I transfer the old one to a new provider and open a new one this year with a different provider or does that break the rules?

That would indeed break the rules.

To maximise your interest:

- Find the highest paying account that does not accept transfers, and put this year's money in there.
- Find the highest paying account the does accept transfers, and transfer your existing ISA to that.

So you'll have two accounts, one with 'old money' and one with 'new money'.

The list of the best currently available is at https://forums.moneysavingexpert.com/discussion/401374, but I would suggest you act quickly as most savings rates are currently dropping quickly. I wouldn't expect all those accounts currently at the top of the list to still be there in a week or two.

elementaryuser

rb10 wrote: »

That would indeed break the rules.

To maximise your interest:

- Find the highest paying account that does not accept transfers, and put this year's money in there.
- Find the highest paying account the does accept transfers, and transfer your existing ISA to that.

So you'll have two accounts, one with 'old money' and one with 'new money'.

Thanks for that but slightly confused. "So can I transfer the old one to a new provider and open a new one this year with a different provider or does that break the rules?" does break the rules. Did you mean that "So you'll have two accounts, one with 'old money' and one with 'new money'." must be with the same provider? E.G I can't transfer last years to M & S and take out this years with Cheshire but I can open two different accounts with one of them or have I got the wrong end of the stick. Sorry to be so dense!

rb10

elementaryuser wrote: »

Thanks for that but slightly confused. "So can I transfer the old one to a new provider and open a new one this year with a different provider or does that break the rules?" does break the rules. Did you mean that "So you'll have two accounts, one with 'old money' and one with 'new money'." must be with the same provider? E.G I can't transfer last years to M & S and take out this years with Cheshire but I can open two different accounts with one of them or have I got the wrong end of the stick. Sorry to be so dense!

You can have as many different ISAs as you like, with any number of different providers - many people believe that there are restrictions here, but in fact you are free to do what you like.

The only restriction is that the current year's money has to go all into one account, i.e. you cannot split the £5,640 between two or more accounts. This doesn't have to be the same account as that which holds your ISA money from previous tax years.

So transferring any number of previous years' ISA(s) to M&S, whilst opening a new ISA with Cheshire BS, is permitted. Then next tax year, you have the option (if T&Cs permit) of adding next year's allowance to the M&S account, the Cheshire account, or opening a new account.

elementaryuser

Thanks for clearing that up. When I looked at a number of the providers sites they imply you can't open with 2 in a year even if one is a transfer. So thanks again for your help.:j

badger09

elementaryuser wrote: »

Ok Noobie question please help! I have an existing ISA from last year now on v poor rate so want to transfer it. I also want to open one for this year. The best one I have found for this year doesn't take transfers. So can I transfer the old one to a new provider and open a new one this year with a different provider or does that break the rules?

Yes you can: providing you haven't paid into your 'existing ISA from last year' since 6th April 2012, and you ask the new provider to do the transfer for you. Don't transfer it yourself or it will lose its tax free status :eek:

rb10 wrote: »

That would indeed break the rules.

To maximise your interest:

- Find the highest paying account that does not accept transfers, and put this year's money in there.
- Find the highest paying account the does accept transfers, and transfer your existing ISA to that.

So you'll have two accounts, one with 'old money' and one with 'new money'.

The list of the best currently available is at https://forums.moneysavingexpert.com/discussion/401374, but I would suggest you act quickly as most savings rates are currently dropping quickly. I wouldn't expect all those accounts currently at the top of the list to still be there in a week or two.

rb10, I think you may have misread OP's post, since

a) what he or she suggests would not break any rules
b) what you have suggested is exactly what he/she suggested in the first place :rotfl:

Without wishing to confuse OP even further there are in fact a number of providers (Nationwide being one of them) who will allow you to open multiple ISAs and to split 'new money' ie this year £5640 between them.

Takes cover and runs

Zambo

Got an 75 Day Cash ISA with Nationwide. Bonus expires 30/11, so called into my local branch earlier this month to see what options I had. Closest to my current one was a 90 day at 2.5%. Person at the desk said don't do it now, wait until end of the month. One week before my bonus expires they announce issue 2 at 2.2%. Bad advice or dodgy practice? They obviously know a good many savers current ISA bonus is due to expire, so they drop the interest rate. Think I'll go elsewhere. Any views?

DebtClearer

If you had £3k saved and could pay £500 per month in to your ISA this year with say £4k remaining wouldn't it just make sense to transfer at as higher rate as possible and keep adding to this?

If I started a new ISA right now then surely my interest would be worse as I would only be getting interest on say £500, then £1k, then £1.5k etc? Whereas with a transfer it would be £3.5k, £4k, £4.5k over next 3 months.

I'm confused now. Should I open another ISA and start pumping in to that or just transfer to another and keep adding to that? I'm not staying where I am as I'm on 1.75%.

murphydavid

Deptclearer I think the answer to your first paragraph is yes. Because if you have 3K saved in an ISA paid in this tax year, you are not allowed to open a new one without transferring all the money out of your existing one. The rules say you can only have the current years money in one cash ISA. ie you can't have part of your allowance paid into one ISA in this tax year and then start paying your remaining ISA allowance into another ISA.

leaphaze

DebtClearer wrote: »

If you had £3k saved and could pay £500 per month in to your ISA this year with say £4k remaining wouldn't it just make sense to transfer at as higher rate as possible and keep adding to this?

If I started a new ISA right now then surely my interest would be worse as I would only be getting interest on say £500, then £1k, then £1.5k etc? Whereas with a transfer it would be £3.5k, £4k, £4.5k over next 3 months.

I'm confused now. Should I open another ISA and start pumping in to that or just transfer to another and keep adding to that? I'm not staying where I am as I'm on 1.75%.

LBM 14/10/2012 - DEBT @ 31/10/12 £10,657.58
CURRENT £10226.64
SAVINGS - £2550 @ 31/10/12
CURRENT - £3114
CLEAR DEBT AND GET HOUSE DEPOSIT BY OCT 2015!

Can't help wondering if you'd be better off reducing your debt, rather than increasing your savings. Obviously, if you can generate more interest though savings than you pay on your debts, savings should be your priority.

dragilex

If I have an ISA with ING (soon to be Barclay's) that is using the current years allowance. Am I allowed to transfer this ISA to somewhere else and pay in more of my allowance into that new destination.

In other words does the allowance transfer with the ISA?