Transfer Cash ISAs Discussion Area

clouds21

Dear All,

I hope this is the right place, apologies if not!

I see that RBS & NatWest are offering some ok rates but I have a question for the forum:
if I switch now, ie 6 months before the end of the tax year do I still get interest paid by my current ISA provider (KRBS cash ISA 5.76%) and then RBS would pay the proportion of their rate advertised, is that right?

Have read the RBS website and it's a bit cunning! The bonus is paid in 2 instalments, March '09 and March '10, weird having a 12-month run at this time of year but I guess they need cash... Also, as I have not paid my full entitlement for 08/09 yet I would not get the bonus on the outstanding amount if I paid it into RBS after the transfer, is that right? Best to pay full entitlement into KRBS and then transfer? What do you think?

Anyone done a transfer half way through the year and what experience did you have with interest payments/ deductions?

Best wishes
clouds21

Baldur

clouds21 wrote: »

Anyone done a transfer half way through the year and what experience did you have with interest payments/ deductions?

I've done many Cash ISA transfers at all times of the year - see the link in my post HERE for ISA transfer information and the rules on subscribing to ISAs after transfer.

blackrod

Can I transfer part of an Isa instead of the total amount of all years to keep below the £35k limit which is guaranteed by the frcs

Baldur

blackrod wrote: »

Can I transfer part of an Isa instead of the total amount of all years to keep below the £35k limit which is guaranteed by the frcs

Partial transfers of previous years' Cash ISA funds are permitted (only whole current tax year's funds can be transferred) but some providers do not permit or accept partial transfers, you'll need to check with your present & prospective new provider.

branstylad

I'm also interested in this point. I have a couple of variable rate cash ISA's that I believe get interest paid at the end of the tax year. What happens if I transfer now. Will "XX" months interest be added to their current value or will there be no interest added at all?

Baldur

branstylad wrote: »

I'm also interested in this point. I have a couple of variable rate cash ISA's that I believe get interest paid at the end of the tax year. What happens if I transfer now. Will "XX" months interest be added to their current value or will there be no interest added at all?

Interest is added to the date of account closure when the funds are transferred by your old provider - the date when interest is paid is immaterial, unless there are specific terms & conditions relating to this in the terms & conditions of the product(s).

branstylad

Thanks for the feedback.
I've never been sure and believed you would need to wait until the end of the tax year. Now I know different I can start moving to better rates.

:j

blondedate

OK Apologies if this question has been asked already, but.... can I transfer a whole Cash Isa from one provider to another IF I have already opened an account in this tax year? I was interested in transferring the lot out of one bank which I opened an ISA with in April but who completely screwed up my interest rate on the Isa and I was not given the rate promised at time of opening (I am going through the Financial Ombudsman about this bank on that AND other errors they made as we speak). So... to tryand get away from their hideous errors, I wanted to know if I could transfer to another provider in same year. No further money would be added, just the transfer. Anyone help? (Ta everso for a brainy banker reply)

Baldur

blondedate wrote: »

OK Apologies if this question has been asked already, but.... can I transfer a whole Cash Isa from one provider to another IF I have already opened an account in this tax year? I was interested in transferring the lot out of one bank which I opened an ISA with in April but who completely screwed up my interest rate on the Isa and I was not given the rate promised at time of opening (I am going through the Financial Ombudsman about this bank on that AND other errors they made as we speak). So... to tryand get away from their hideous errors, I wanted to know if I could transfer to another provider in same year. No further money would be added, just the transfer. Anyone help? (Ta everso for a brainy banker reply)

Simple answer - yes you can. A transfer does not constitute 'opening & funding a new Cash ISA'.

granny_grunt

Went into NATWEST today to transfer a couple of old ISAS. They said I had to open a Savings Reserve account first.When I asked why, they said in case I tried to put more than my allowance into the account. I explained I had already fully subscribed to this years ISA and would not be putting anymore in.They insisted I couldnt transfer my old ISAS until I opened this new account which I don't want or need . Has anyone had the same and can anyone explain this.

Transferring Cash ISAs to up the interest

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