Transfer Cash ISAs Discussion Area

leaphaze

dragilex wrote: »

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?

Yes it does.

SephirothXI

I have a problem right now.

I am currently on Intelligent Finance's instant access ISA with 2.5% rate. However I have just received a letter saying from February 9th 2013 my rate will be reduced to 1.81%. I am not staying with that rate. So I need to transfer.

Questions:

Should I transfer now or wait until February? I haven't used up this year's allowance yet and probably can't until at least March unless HMRC gets off their !!!! and sends my tax refund in which case February.

I've been looking at the current best ISAs for transfers in, it seems M&S' 2.75% rate is the best. But I don't like this ISA because you can't operate the account online. I've been using online ISAs for 5 years and it just seems like a step backwards. I also prefer my interest monthly but I suppose that's no big issue.

I wouldn't mind a 2 year fixed ISA or 1 year but I hear you can't deposit whenever you want on these so they are no use as I can't afford a £5.6k lump sum at the start of tax years.

I think I am also going to open up one of those First Direct savings accounts with 8% rate as it just looks awesome. Never heard of the company however so need to do my research.

So yeah what is the best plan of action?

murphydavid

SephirothXI wrote: »

I have a problem right now.

I am currently on Intelligent Finance's instant access ISA with 2.5% rate. However I have just received a letter saying from February 9th 2013 my rate will be reduced to 1.81%. I am not staying with that rate. So I need to transfer.

Questions:

Should I transfer now or wait until February? I haven't used up this year's allowance yet and probably can't until at least March unless HMRC gets off their !!!! and sends my tax refund in which case February.

I've been looking at the current best ISAs for transfers in, it seems M&S' 2.75% rate is the best. But I don't like this ISA because you can't operate the account online. I've been using online ISAs for 5 years and it just seems like a step backwards. I also prefer my interest monthly but I suppose that's no big issue.

I wouldn't mind a 2 year fixed ISA or 1 year but I hear you can't deposit whenever you want on these so they are no use as I can't afford a £5.6k lump sum at the start of tax years.

I think I am also going to open up one of those First Direct savings accounts with 8% rate as it just looks awesome. Never heard of the company however so need to do my research.

So yeah what is the best plan of action?

Same as the rest of us I suppose. If you can't find what you want in Martins article then do a search in moneysupermarket.com. On the other hand if you find something better than either of these please let us know.
Thanks

leaphaze

SephirothXI wrote: »

I think I am also going to open up one of those First Direct savings accounts with 8% rate as it just looks awesome. Never heard of the company however so need to do my research.

Just to let you know, First Direct is part of HSBC bank, the largest bank in Europe.

thenudeone

elementaryuser wrote: »

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

I'm not sure "a number of the providers" prevent opening an account with just a transfer.

Most providers will allow you to open an ISA account with just a transfer and without putting any new money in, although the forms and information are sometimes misleading, saying things like "you can only open one ISA account in a year" which isn't true - you can open dozens if you like, but you can only put new money into one (or more if you transfer it in full to another provider). And sometimes the best accounts can't be opened with a transfer, only with new money.

boobbby

I think I am also going to open up one of those First Direct savings accounts with 8% rate as it just looks awesome. Never heard of the company however so need to do my research.

So yeah what is the best plan of action?[/QUOTE]

Good rate for a regular saving account but you will also need to open a current account

** Open a 1st Account then transfer your banking using our Easyswitch service (transferring at least two Direct Debits and/or standing orders) and salary/income of at least £1,500 per month to your 1st Account within three months of your account opening and we will add £100 to your account. This offer is only available for people who haven't previously held any account with first direct and is limited to one payment per joint

innovate

leaphaze wrote: »

Just to let you know, First Direct is part of HSBC bank, the largest bank in Europe.

Depends what measure you use. Though HSBC generally do come in the top 5, and they definitely top the list of banks with the fine they are now paying for allowing money laundering. http://www.caller.com/news/2012/dec/11/europes-largest-bank-pay-19b-settle-us-money-laund/

Anyway, anything up to £85K in the UK arm of the HSBC Group, incl First Direct, is perfectly safe.

leaphaze

innovate wrote: »

Depends what measure you use. Though HSBC generally do come in the top 5, and they definitely top the list of banks with the fine they are now paying for allowing money laundering. http://www.caller.com/news/2012/dec/11/europes-largest-bank-pay-19b-settle-us-money-laund/

I was measuring by assets, but come across a website to suggest I was wrong http://www.relbanks.com/top-european-banks/assets. Anyway, it's not a backstreet bank; but big enough to make mistakes as you say.

murphydavid

I have a first direct current and the 8% account. You need to take out both at the same time as there is a charge if you have a current account only. Opening another linked account or service does away with the charge. Depending on your savings base level you might find that the maximum monthly savings deposit is so small that the total interest you can earn in a year (rather than the rate) is such that it is only an inducement to get you to open the current account. A bit like the Halifax £5.00 a month bonus in their current account. I find the FD current account and level of service is really smooth and once operational you will probably be happy to change your current account to them. I was. If you go for this after a year your 8% regular saver will be automatically changed to a low interest account and you need to start again. At that point do not close the first one till the next is up and running leave a pound in there because if you end up with only a current account then the fees will be taken.
Sorry to post this in the ISA forum but it has kind of wandered away for the moment.
Also I did not look if they still charge fees but they did a couple of years ago

black_taxi_2

Confused about new money into a cash isa

say 2011/12 you put in full yearly allowance @3%

They pay the interest

now for next year 2012/13 it's paying the same

I just put next years full allowance in

Say after 2011/12 they dropped rate and I want a diff society

Do I open new account for 2012/13 add full yearly allowance THEN transfer other balance in from old account

Only asking because I'm confused

thx