Transfer Cash ISAs Discussion Area

WH_Saint

To update on my situation the TSB have now refused to transfer my cash ISA to a second provider ! This time Charter Savings Bank have informed me the electronic transfer has failed. Around a month ago I successfully transferred a cash ISA from Kent Reliance to Charter so I know their transfer process works well. TSB are again saying they see no reason for the failure at their end. I am heartily sick of their attitude. I am still awaiting their written response to my original complaint, which they verbally did not uphold, so that I can now progress a complaint with the Financial Ombudsman.

B91

Like others I guess I'm looking at the dreadful rates on a few of our existing ISAs and checking out possibilities for transferring to better paying accounts.  However I'm unsure about one of the rules you need to comply with where you are asked if you have subscribed to or opened an ISA already in the current tax year.  My wife applied to open an ISA with a building society but although the account  has been opened with a zero balance she has never received the transfer form they want signed and returned.  In the meantime of course, more attractive offers have become available.  Question is, does this open zero balance account mean she is now unable to apply to a different bank for a different ISA product?

eskbanker

B91 said:

Like others I guess I'm looking at the dreadful rates on a few of our existing ISAs and checking out possibilities for transferring to better paying accounts.  However I'm unsure about one of the rules you need to comply with where you are asked if you have subscribed to or opened an ISA already in the current tax year.  My wife applied to open an ISA with a building society but although the account  has been opened with a zero balance she has never received the transfer form they want signed and returned.  In the meantime of course, more attractive offers have become available.  Question is, does this open zero balance account mean she is now unable to apply to a different bank for a different ISA product?

No, an ISA isn't deemed fully opened until it's funded, and in any case, if she hasn't made any subscriptions of new money this year she still has all her options open, so can open another one elsewhere and fund that instead.  The bolded wording should only refer to 'subscribed' rather than 'opened', as there is no limit on how many ISAs can be opened....

Oasis1

I think I've got my head around ISAs but then a scenario comes up when I'm confused again. So:

I haven't used any of my £20k ISA limit this year (I only have a LISA). I've opened a Coventry BS ISA but yet to deposit money. So technically haven't 'subscribed'.

Would depositing £20k into the Coventry ISA mean I can't open and transfer into another ISA (which allows transfers) with a better rate in 2022/23? Or does the transfer in and closure of the Coventry BS ISA make it fine to do and not subscribing to two ISAs?

Ideally I want to put the £20k in and then be able to transfer it to a higher rate (potentially fixed) ISA before April 2023, when hopefully rates will be nearer the peak.

Thanks in advance.

masonic

Oasis1 said:

I think I've got my head around ISAs but then a scenario comes up when I'm confused again. So:

I haven't used any of my £20k ISA limit this year (I only have a LISA). I've opened a Coventry BS ISA but yet to deposit money. So technically haven't 'subscribed'.

Would depositing £20k into the Coventry ISA mean I can't open and transfer into another ISA (which allows transfers) with a better rate in 2022/23? Or does the transfer in and closure of the Coventry BS ISA make it fine to do and not subscribing to two ISAs?

Ideally I want to put the £20k in and then be able to transfer it to a higher rate (potentially fixed) ISA before April 2023, when hopefully rates will be nearer the peak.

Thanks in advance.

Transferring is not subscribing, so this is fine to do.

Oasis1

Brilliant. Thought that was the case but wanted to check before I deposit into Coventry BS!

Thank you masonic.

Jelli

Hello, I just have 2 questions I couldn't find answers for using search engines (I always get 'how to transfer last year's ISA to this year's' info).

If I've already opened and 'partially' funded an ISA this tax year but rate became worse, the general info suggests I can't bail and open a second new ISA to transfer too, and importantly continue using remaining allowance up. Is this correct? So going from new-to-new is not possible, with the last destination knowing how much allowance I have left..

If I opened a new ISA this tax year but the rate became worse than my previous year's ISA, can I transfer this year's ISA to the older one, BUT continue using this year's allowance up? If yes, how would the older ISA know how much allowance I have left?

slinger2

You can always transfer an ISA to a new provider, as long as the new provider allows transfers in (penalties may apply, especially for fixed-rate accounts). Transfers never affect your annual £20k allowance. Most variable-rate easy access accounts will allow transfers in, but few fixed-rate accounts allow it (outside a short initial funding window). You need to read the T&Cs.

I understand that when a transfer happens the old provider tells the new provider how much of the current years allowance has been used for that account.

Under new rules, you can open and fund as many ISAs as you want in any tax year; it's up to you to ensure you don't exceed the £20k allowance. Providers notify HMRC.

Jelli

Brilliant, you've answered everything. Thanks.

financies

Anybody with recent experience about the costs and acceptance of transferring cash isa's in? Is there a list of providers accepting? The recommend Tembo does not accept transfers currently.