Transfer Cash ISAs Discussion Area

leaphaze

GoingMad wrote: »

they have withdrawn that issue from the market and I am not allowed to top it up.

It depends on the t&c of the account. Which account are you talking about?

GoingMad

10_66 wrote: »

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.

Many thanks for your reply. Unfortunately it is a fixed one so yes penalties are a sure bet.

GoingMad

leaphaze wrote: »

It depends on the t&c of the account. Which account are you talking about?

It is Virgin's Fixed Rate Cash E-ISA Issue 44

GoingMad

boobbby wrote: »

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 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.

Many thanks for your extensive explanation. It is really helpful. the nitty-gritty of Ts&Cs and the wording are sometimes daunting to even start to read them none the less understand them

Party_Animal

Stuck with FD too, from 3% to 2% from Friday and can't find anything to beat it. Something FD are well aware of. It's a big drop though a third.

david78

Has anybody else experienced difficulties opening a second Halifax Cash ISA online?

I have two existing Cash ISAs with them, both funded by transfers in. I want to open another fixed rate cash ISA with them and do another transfer in from another Cash ISA account (with Nationwide).

It won't let me; says I can only have one active account. But I only want to transfer in!

What can I do?

typistretired

If I was you, I would give them a ring on their free phone number

0800 0326479.

david78

I did that and its all been sorted out over the 'phone. Account is now showing in my online account - waiting for the transfer to complete now.

leaphaze

david78 wrote: »

Has anybody else experienced difficulties opening a second Halifax Cash ISA online?

I have two existing Cash ISAs with them, both funded by transfers in. I want to open another fixed rate cash ISA with them and do another transfer in from another Cash ISA account (with Nationwide).

It won't let me; says I can only have one active account. But I only want to transfer in!

Yes, I have had this in the past. I had two variable rate ISAs with other providers and wanted to transfer them both to the Halifax but keep them separate since they were intended for different things. In the end I transferred both into the same new ISA and used a spreadsheet to keep the amounts and interest separate.

crunchie1

I opened one if these in August with my annual Isa allowance. It is 2.25 %. I also had a fixed rate Isa which matured on 31 October and became instant access 1%

Nationwide's online banking is allowing me to transfer the money online into the issue 4 isa, although I believe from it's terms and conditions that it shouldn't.

Has anyone else done this ?

The options are normally simply grayed-out if it is not allowed. I would be happy with instant access 2.25 for now, but is there a danger they won't pay it on the whole balance