Transfer Cash ISAs Discussion Area

Dustykitten

I've filled in all the RBOS forms and applied online - I'll see what comes in the post.

Nicstoj

This might be a stupid question but is the bonus payable on a cash ISA taxable? I realise the interest is not but it seems pointless to transfer to one offering a bonus which is then taxed - barely worth it!

Baldur

Nicstoj wrote: »

This might be a stupid question but is the bonus payable on a cash ISA taxable? I realise the interest is not but it seems pointless to transfer to one offering a bonus which is then taxed - barely worth it!

If the bonus interest is paid directly into the Cash ISA account, no it's not taxable - it just becomes part of the overall interest rate.

suttonsaver

Baldur wrote: »

That assumes that the transfer process goes without a hitch - a number of posters on these forums, including myself, are still awaiting the completion of Cash ISA transfers from March/April 2008.......

You miss my point. I was citing Icesave as a prime example of what it is possible to achieve - ie, fairly speedy transfer and minimum "faff" - with a bit of co-operation from other ISA providers. I well understand what delays can and do occur - particularly where high street banks are concerned.

Lugh_Chronain

With both Natwest and RBS if you transfer from them any time before the 12 months are up does the rate then revert to 2% less of the 7.32% & 7.25%that they are offering? E.g. will Natwest’s 7.32% revert to 5.52% if you transfer out any time during the tax year? Wouldn’t you be locked in to this in that case? If a better rate comes up with another provider then you’d surely have to ask yourself if you wanted to transfer whether to or not as you won’t get the bonus. I’m only asking this as I would like to transfer from Icesave’s ISA as both these are higher yet I’m not sure as I think I’d have to wait 12 months before I could transfer again. Not sure if I want to do that to be honest.

Baldur

suttonsaver wrote: »

You miss my point. I was citing Icesave as a prime example of what it is possible to achieve - ie, fairly speedy transfer and minimum "faff" - with a bit of co-operation from other ISA providers. I well understand what delays can and do occur - particularly where high street banks are concerned.

Having transferred ISA funds to Icesave earlier this year, they must have improved - I even had to explain to them that the transfer of partial previous years' funds was permitted under the HMRC Guidance to ISA Providers, citing the relevant Chapter & subsection, before they would grudgingly accept my inward transfer.

hornets_2

Hi.
Does anyone know if you can transfer your Isa to another provider if you've already started paying into it in its current financial year.


Hornets

CompletelyLost

From experience, can anyone tell me who transfers ISAs fairly quickly AND has a decent interest rate (excluding Icesave)?

BargainHunter_2

If I transfer from a couple of ISAs and combine into the Natwest one to get a better rate, can i then transfer again next year and split the amount?

Baldur

BargainHunter wrote: »

If I transfer from a couple of ISAs and combine into the Natwest one to get a better rate, can i then transfer again next year and split the amount?

Theoretically, yes - partial transfers of previous tax years'/year's are allowed under HMRC rules but some ISA providers will not permit or accept them, so you need to check that:

1. Natwest permits outward transfers of partial previous tax years' Cash ISA funds.
2. Your chosen new ISA providers accept transfers of partial previous tax years' Cash ISA funds.