Transfer Cash ISAs Discussion Area

suelees1

yes that'll be fine

ukcheetah

suelees1 wrote: »

yes that'll be fine

thanks again. no more confusing now :beer:

Poing

My boyfriend has an ISA with a terrible rate (about 4.5%) that he has had for about 6 years. He has paid 5 monthly payments into it this year.
To switch to another ISA that pays better and allows transfers in - what can he transfer?
The whole amount and then make monthly payments to the new one?
Or the balance upto the 2007/8 tax year? And then would he have to keep paying into the old one as he has already started paying into it for this year?

If an ISA is transferred mid-year, how is the interest paid by the old & new provider?

Sorry if these have already been answered, but the only being allowed one ISA per year rule is quite confusing!

Thanks.

purplestar133

Poing wrote: »

My boyfriend has an ISA with a terrible rate (about 4.5%) that he has had for about 6 years. He has paid 5 monthly payments into it this year.
To switch to another ISA that pays better and allows transfers in - what can he transfer?
The whole amount and then make monthly payments to the new one?
Or the balance upto the 2007/8 tax year? And then would he have to keep paying into the old one as he has already started paying into it for this year?

If an ISA is transferred mid-year, how is the interest paid by the old & new provider?

Sorry if these have already been answered, but the only being allowed one ISA per year rule is quite confusing!

Thanks.

He can transfer the whole amount in and continue to pay in up to his subscription limit with the new provider. So if he's made 5 payments of £200, say, this tax year, he can pay a further £2600 in.

The old provider will calculate the interest due up to the date it sends the cheque to the new provider. The new provider will then calculate the interest due, from the date it receives the cheque, or it may be from the date it opens your account - you'll have to check that with your provider.

girlatplay

I had an ISA with Halifax last year and decided to change to Alliance and Leicester for this tax year as they had a much better rate. I know the rules about 1 ISA per year and not withdrawing but transferring the money etc etc. I had already paid £40 into the Halifax ISA in this tax year but as I was transferring the money to Alliance & Leicester rather than withdrawing it I didn't think there would be a problem. I received a letter from Alliance & Leicester saying they couldn't accept my transfer since I had already paid into a cash ISA this tax year and they told me to call the Inland Revenue immediately. Turns out that what I did was paid the £40 into Halifax then opened Alliance & Leicester, didn't pay any more into Halifax but started paying into Alliance & Leicester before the transfer had gone through. So, if you are going to open a new ISA during a tax year, make sure you do not pay anything into your new ISA before the funds have been transferred over from your old one.

The Inland Revenue were actually very helpful and reassured me that I wouldn't get into big trouble. Apparently it is very common since the ISA rules are so fiddly. I can assure you though, I will not do it again!

lindos90

My husband has been trying for 4 months to transfer his Isa from brittania BS to A&L.

Brittania are saying they have not had any requests for a cheque, A&L initailly said they have made several requests for the cheque, and even said they recieved one, but then sent it back as it was out of date before they got round to processing it!!

Since the onbudsman contacted A&L, their official response now is that they have no trace of my husbands request for transfer, which is strange as the transfer request was made on the ISA application form, and they managed to set up the ISA!!

He has completed one on line, then was sent a second and asked to hand it in at the local branch, now A&L are asking him to fill another form in before they can proceed.

So 4 months on, and with ombudsman help and we are back at square one, he still wants to transfer his money to A&L, I think he is mad to do so, the rate has dropped and A&L are feeding him lies.

Sorry, long post, my actual question is.....
Is it that you can only OPEN, or only FUND one ISA a year, A&L have opened an ISA account, but it remains unfunded, as the transfer from Brittania has not happened.

If he closes this account, would he be allowed to open another ISA this year with another provider? or are we commited to A&L this year now?

Im wondering if the principality ISA mentioned earlier would be a better one, they seem to have good CS reports.

rja211077

ukcheetah wrote: »

Thanks suelees1. To speak simply, I have opened a new cash ISA account for this year's 3,600. And I also want to transfer my previous money into another new cash ISA account (I've never been with this provider). Is that allowed?

suelees1 wrote: »

yes that'll be fine

So let me get this 100% straight. You can only 'open' one cash ISA per tax year, but transferring an old ISA into a new one (no new deposits) does not count as "opening" an ISA?

In other words, ISAs are only 'opened' (for the purposes of the "one provider a year rule") with fresh deposits, not transfers?

So i can transfer a previous year's ISA into one provider today, and then also immediately deposit my £3600 allowance for this tax year into a completely separate ISA with another provider?

Sorry to seem stupid.

billieboy_2

tonyg wrote: »

Trying to transfer out of A&L into Abbey. A&L account number is 11 digits but Abbey will only allow me to type in a 10 digit mumber. Each company says to contact the other. Total rubbish!

I've just tried applying for Abbey online and had the same problem. Abbey said speak to A&L to get which digits to input. When I spoke to A&L they said to open the account with nil (as I've used this year's ISA allowance) and then get a paper form to transfer over, but you can't open the account with nil:mad: :mad: :mad: . DH has now gone to an Abbey branch to hopefully get the necessary forms! Nothing's ever simple.

owitemisermusa

billieboy wrote: »

I've just tried applying for Abbey online and had the same problem. Abbey said speak to A&L to get which digits to input. When I spoke to A&L they said to open the account with nil (as I've used this year's ISA allowance) and then get a paper form to transfer over, but you can't open the account with nil:mad: :mad: :mad: . DH has now gone to an Abbey branch to hopefully get the necessary forms! Nothing's ever simple.

I hope someone will correct me if I'm wrong but with A&L don't you just drop the first digit?

Still a good idea to check in-branch though.

HTH.

billieboy_2

owitemisermusa wrote: »

I hope someone will correct me if I'm wrong but with A&L don't you just drop the first digit?

Still a good idea to check in-branch though.

HTH.

Thanks but you'd have thought the A&L person on the telephone could/would have told me that:rolleyes: . Anyway I think that's with their current accounts when you set up a direct debit and put the first number on the beginning of the sort code. I've made an appointment with Abbey for next week to open one up. In the meantime I may have changed my mind about going with them;) .