Transfer Cash ISAs Discussion Area

leaphaze

Yawn wrote: »

Hello,

Apologies if this question was asked recently - I scrolled through quite a few posts but couldn't find the answer that I was looking for.

The bonus rate (4.25%) of my Nationwide Flexclusive ISA is ending this month (the balance belongs to the 2012/2013 tax year). I am wondering whether there is anything half decent I can transfer the balance to? The problem is that I already opened the Newcastle Regular Saver ISA so I cannot make new payments in for the current tax year. All the fixed-rate ISAs I've seen demand a minimum deposit of some sort (for the current tax year?) So I'm a bit lost at the moment - any suggestions are welcome!

Your 2.25% bonus has now lapsed, leaving the rate at 2%. There 's nothing that beats it that allows transfers in without imposing extra conditions like having to lock your money away.

DragonQ

leaphaze wrote: »

Your 2.25% bonus has now lapsed, leaving the rate at 2%. There 's nothing that beats it that allows transfers in without imposing extra conditions like having to lock your money away.

It hasn't lapsed yet, it ends on 31/10/2013, even though interest is paid annually 30th September for some reason...

gowgowuk

typistretired wrote: »

Very pleased with Nationwide Building Society.

I arranged a few weeks ago for my isa with them to be moved to Coventry Building Society on 1st October 2013 after interest rate had dropped from 3.10% to 1.00%. Just checked online Coventry Building Society account and the isa arrived in my isa with them the same day.

Same here: transferred from Nationwide to First Direct in 6 days from the moment I sent my transfer forms to FD!!!!

rb10

gowgowuk wrote: »

Same here: transferred from Nationwide to First Direct in 6 days from the moment I sent my transfer forms to FD!!!!

You do know that First Direct are dropping their ISA rates significantly on 1 November...?

gowgowuk

rb10 wrote: »

You do know that First Direct are dropping their ISA rates significantly on 1 November...?

Yes, thanks, but there doesn't seem to be anything other than marginally better and since I'm already a customer of First direct, that seemed like the easiest option. There is no penalty to transfer elsewhere if I find much better,

john1950

Read a couple of posts on the site and have had a wobble as to whether what I am doing is correct. Transferring past years ISA's will mean opening a new account but that does not affect my subscription to the current year as far as I can see.
I have transferred half of my Nationwide Online ISA which was built up in past years to Halifax 2year fixed. The rest I have put in Nationwide's Web ISA waiting for somewhere more suitable to transfer to. When I move the Web ISA to the more suitable provider that will be two transfers and therefore two new accounts with other providers in the same year. As far as I know that is o/k. They are transfers, you can do what you like with past years ISA money.
I have not used this years ISA allowance so I have not "subscribed" to a new ISA this tax year but I will have opened two new accounts.
I may subscribe to an ISA this year if something crops up but as far as I know what I plan doing is o/k

Anyone know for sure please, I think the dementia is kicking in.

DragonQ

You are correct on all counts, john1950.

GoingMad

Wish I'd read this one a few months back.
I have transferred an old cash isa from one account to another within the same provider and started to put in this years allowance, to find out that they have withdrawn that issue from the market and I am not allowed to top it up.
Has anyone had a similar problem and how can I use up my allowance.

Many thanks

10_66

GoingMad wrote: »

Wish I'd read this one a few months back.
I have transferred an old cash isa from one account to another within the same provider and started to put in this years allowance, to find out that they have withdrawn that issue from the market and I am not allowed to top it up.
Has anyone had a similar problem and how can I use up my allowance.

If you're not allowed to carry on adding this year's subscription into the ISA into which you've already made some of this year's subscription, the only way you can use up what's left is if you transferred out of the existing ISA into one that did permit additions. But if it's a fixed rate (you haven't said what sort it is), then you would more than likely have to pay a penalty in lost interest to transfer out (if indeed you are allowed early access at all). You can't pay the current year's subscription into more than one ISA, you can only split previous years' subscriptions.

boobbby

GoingMad wrote: »

Wish I'd read this one a few months back.
I have transferred an old cash isa from one account to another within the same provider and started to put in this years allowance, to find out that they have withdrawn that issue from the market and I am not allowed to top it up.
Has anyone had a similar problem and how can I use up my allowance.

Many thanks

Dan Hyde, of This is Money, replies: You are quite correct, the taxman only allows savers to pay into one cash Isa and one stocks & shares Isa each April to April tax year.

It's worryingly simple to break this rule - for example, if you top up an an existing Isa in April and then open a new account the following March to exhaust the allowance eleven months later.

If you have mistakenly contributed to two cash Isa accounts, don't worry, it's easily resolved.

I asked Patrick O'Brien, of HMRC, what the best course of action is.

He says: 'You should not try to correct this mistake yourself. Instead, you should call the Isa Helpline on 0845 604 1701 begin_of_the_skype_highlighting 0845 604 1701 FREE end_of_the_skype_highlighting and explain the problem to them. They will advise you what action you need to take.'

Don't take the cash out because you'll not get a fresh Isa allowance (£5,100 for the 2010-2011 tax year). As soon as it's paid in, that is counted as an Isa contribution whether you take it out or not.

The good news is HMRC is surprisingly lax when it comes to punishing savers for disobeying the rules. But only if it's your first time.

If you do it 'deliberately or carelessly' or are a repeat offender, then they'll demand you pay tax on any interest earned (or give back tax relief on investments if it's a stocks & shares Isa) on the second account.

If it was a genuine accident, then it's likely you'll get away without punishment and get to keep the tax-free Isa status on the cash.