Transfer Cash ISAs Discussion Area

innovate

Do not close your ISA! Your money will immediately lose its tax-free status if you close your ISA.

If you ask your new provide to transfer, you can specify whether you want the transfer to happen immediately, or whether to wait until the notice period is over or maturity has been reached.

innovate

10_66 wrote: »

I would think that even if you closed your ISA immediately paying the penalty, the transfer could still take up to 15 days.

You either close the ISA, or you transfer it. Can't have it both ways.

gwapenut

It can't possibly be worth paying the £100 penalty. Just initiate now with instructions that it shouldn't happen until the maturity date.

In any case - It does not happen whether you pay £100 now or sit out your fixed rate. The clock starts ticking from the transfer date, and in an ideal world will take the same time whenever.

Practically, I would say your adviser was talking nonsense and that you are more likely to have it happen quickly if you specify waiting til the 15th. There are two reasons for this:-
1. The 15th is after the end of the tax year and Santander will be less overwhelmed with people rushing to put in their 2012-13 allowances.
2. You are giving Santander a little more warning about what you intend to do, more time to prepare, etc. Though I doubt this will have much bearing, but certainly won't do any harm.

SallySunshine

Sorry, I think I expressed myself badly, I would never close an ISA, I meant transfer it out before the maturity date and pay M&S penalty.
however I was more interested in the question of losing interest during the time frame of transference.

I know it can't be helped and just hope it takes less than the 15 days.

Not sure whether to open a new one with 13/14 allowance on 6th April, then transfer in old money, or transfer on 15th, then add new allowance after.

I have transferred a few times but not for the past 3 years.

ceejayblue

I had major problems transferring my existing ISAs this year to Natwest but after complaining about the way it was handled I got compensation and my interest was paid from the time of the date that I asked for the transfer to be made. You should not lose out on your interest when transfering.

gwapenut

Sally, I think I'd open it first on 6 April with new money - at least you know then that all the new ISA paperwork, ID checks, etc has been completed in time for when you want your larger pot to be transferred quickly and efficiently.

If they fail to open that new ISA in good time, you can then consider whether you want to trust them with your larger pot.

Although I guess you'd specify the tranfer at the same time as opening with the new money. But still, the new money gives a good chance for the enw ISA to be st up in plenty of time.

sjberry87

Hi apologies if this question has been asked before I just require some clarification after reading about transfer of isa's it's all left me v confused

I currently have £6k sat in an old isa with Yorkshire building society I have had for years paying an awful rate as you can imagine, I am thinking of opening a new isa (before this tax year ends) with Coventry as their rate is better. If I transfer my current £6k can I then continue adding money to that isa or will the 6k I add take up my yearly allowance? I am just trying to make the most of what I currently hold and my new savings going forward...

I hope I have explained that enough! Any help would be much appreciated! Saving for a house is hard work!! :rotfl:

thenudeone

Transfers made by your new provider using the formal ISA transfer system do not count as part of the annual limit.

sjberry87

thenudeone wrote: »

Transfers made by your new provider using the formal ISA transfer system do not count as part of the annual limit.

Thank you, can I leave some of the money in Yorkshire or must I transfer it all? By transferring it all does that close the account?

:money:

ceejayblue

You can leave some in or take it all. As I understand it if you take it all it goes sort of dormant and you will have to contact them to reinstate it at a later date if you wanted to use it again.