📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Transfer Cash ISAs Discussion Area

1313314316318319

Comments

  • gwapenut
    gwapenut Posts: 1,433 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Does anyone know which ISA providers pay interest from the date they receive an ISA transfer application?

    I know Nationwide still do as part of their savings pledge. Any others?
  • Missaver
    Missaver Posts: 184 Forumite
    Third Anniversary 100 Posts Name Dropper
    edited 16 May 2022 at 10:54PM
    Hi, 

    My first question here, looking for some advice please.
    I have a substantial cash ISA where the interest rate is less than 1% and am thinking of closing it and moving the money to a savings account with Chase for 1.5% interest.  Would this be a bad move (ie, do away with an ISA), since savings rates can beat easily beat ISA rates nowadays?
  • gwapenut
    gwapenut Posts: 1,433 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Missaver said:
    Hi, 

    My first question here, looking for some advice please.
    I have a substantial cash ISA where the interest rate is less than 1% and am thinking of closing it and moving the money to a savings account with Chase for 1.5% interest.  Would this be a bad move (ie, do away with an ISA), since savings rates can beat easily beat ISA rates nowadays?
    No, it's the sensible move for most people. But if you think you may need your ISA allowance in the future, consider flexibly withdrawing the money, putting it into chase, popping it back in your ISA on 5 April, then withdraw again on 6 April. That will preserve the ISA allowance you have built up "just in case"
  • someone
    someone Posts: 838 Forumite
    Part of the Furniture 500 Posts Name Dropper
    Missaver said:
    Hi, 

    My first question here, looking for some advice please.
    I have a substantial cash ISA where the interest rate is less than 1% and am thinking of closing it and moving the money to a savings account with Chase for 1.5% interest.  Would this be a bad move (ie, do away with an ISA), since savings rates can beat easily beat ISA rates nowadays?

    I had a thread back in April "PSA easily used up with higher % accounts - ISAs to get useful again?" that shows as rates increase the PSA starts to get quickly eaten up.

    When you say "Substantial" how much we talking? And are you a basic rate or higher rate taxpayer?

    Depending on your answers you might want to reinstate your ISA later in the year if rates continue to raise. If so check if your existing ISA is "flexible". These "flexible ISAs" allows you to withdraw and re-deposit in the same tax year without counting as new usage and are handy if your deposit is larger than the current annual limit. If your existing ISA isn't flexible just do an ISA transfer to one that is.

    The first post here https://forums.moneysavingexpert.com/discussion/401374/cash-isas-the-best-currently-available-list/p1 shows current rates for different types of ISAs. Under "Variable Rate Cash NISAs that accept transfers in". Tesco, Ford, Yorkshire BS, Principality all appear to be currently offing flexible cash ISAs.




  • Missaver
    Missaver Posts: 184 Forumite
    Third Anniversary 100 Posts Name Dropper
    someone said:
    Missaver said:
    Hi, 

    My first question here, looking for some advice please.
    I have a substantial cash ISA where the interest rate is less than 1% and am thinking of closing it and moving the money to a savings account with Chase for 1.5% interest.  Would this be a bad move (ie, do away with an ISA), since savings rates can beat easily beat ISA rates nowadays?

    I had a thread back in April "PSA easily used up with higher % accounts - ISAs to get useful again?" that shows as rates increase the PSA starts to get quickly eaten up.

    When you say "Substantial" how much we talking? And are you a basic rate or higher rate taxpayer?

    Depending on your answers you might want to reinstate your ISA later in the year if rates continue to raise. If so check if your existing ISA is "flexible". These "flexible ISAs" allows you to withdraw and re-deposit in the same tax year without counting as new usage and are handy if your deposit is larger than the current annual limit. If your existing ISA isn't flexible just do an ISA transfer to one that is.

    The first post here https://forums.moneysavingexpert.com/discussion/401374/cash-isas-the-best-currently-available-list/p1 shows current rates for different types of ISAs. Under "Variable Rate Cash NISAs that accept transfers in". Tesco, Ford, Yorkshire BS, Principality all appear to be currently offing flexible cash ISAs.




    I am a basic rate taxpayer and it's over £50k as it's been built up for many years.  It's a triple access flexible ISA, so I should be ok to withdraw up to 3 times in the tax year.  
  • Hi there, I'm new to the forum and this thread seemed most appropriate for my query.

    I have one easy access cash ISA (BOS) that I renewed prior to the new tax year 22/23, and contributed the whole allowance on the 6th April 2022. I have decided to look around for a better rate of interest.

    My question is, can I transfer some of the balance accrued over past tax years on my existing account, given that I've already used up my full allowance ? I'm struggling to interpret a lot of the wording on this subject.

    I tried to open a new account (1 year fixed cash ISA) with ABL UK and was asked if I wanted to fund via current subscription, transfer of existing ISA, or both. Can anyone explain to me what this means ?

    Any help is much appreciated, cheers.
  • gwapenut
    gwapenut Posts: 1,433 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 6 June 2022 at 12:53PM
    Welcome and thank you for taking the time to dig out an appropriate thread to post on.

    Funding via current subscription means using the current year's allowance with new money, so that is not an option to you because you have already used this tax year's allowance in your BoS ISA.

    My understanding of ISA transfers is that the options open to you are to transfer as much or as little as you want of what you had in BoS up to 5th April.

    You can also transfer all or nothing, but no amount in-between, of the £20k you put in on 6th April.

    Perhaps someone else can confirm though that my understanding is correct. I've never done a partial transfer of an ISA which has money from both current and previous tax years 
  • gwapenut said:
    Welcome and thank you for taking the time to dig out an appropriate thread to post on.

    Funding via current subscription means using the current year's allowance with new money, so that is not an option to you because you have already used this tax year's allowance in your BoS ISA.

    My understanding of ISA transfers is that the options open to you are to transfer as much or as little as you want of what you had in BoS up to 5th April.

    You can also transfer all or nothing, but no amount in-between, of the £20k you put in on 6th April.

    Perhaps someone else can confirm though that my understanding is correct. I've never done a partial transfer of an ISA which has money from both current and previous tax years 
    Thanks for your help gwapenut.

    The bit that's confusing me is when you say I can only transfer funds from my BOS account that were held prior to the current 22/23 tax year (up to 5th April), but also say that I can transfer all or nothing of the allowance paid into that account from the 6th April onwards.

    To be honest, I'm still really not sure if I can do this transfer, or not, or even how much I can transfer if I was able to.


  • gwapenut
    gwapenut Posts: 1,433 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    There are two Inland Revenue rules for transfers. Previous tax years' savings can be transferred fully or partially. But savings deposited during the current tax year must be transferred in full, or not at all.
  • gwapenut said:
    There are two Inland Revenue rules for transfers. Previous tax years' savings can be transferred fully or partially. But savings deposited during the current tax year must be transferred in full, or not at all.
    Thanks. I think I'll go for the 'transfer from existing ISA', and see how I get on. I plan to transfer most, but not all of the funds. They can only say no.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.3K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.7K Spending & Discounts
  • 244.2K Work, Benefits & Business
  • 599.4K Mortgages, Homes & Bills
  • 177.1K Life & Family
  • 257.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.