Transfer Cash ISAs Discussion Area

JudithEllen

Hi
If Icesave goes belly up when we get our money back can we re-invest in an ISA or do we loose the tax free Benefit?

Baldur

JudithEllen wrote: »

If Icesave goes belly up when we get our money back can we re-invest in an ISA or do we loose the tax free Benefit?

I doubt whether anyone can give you a definitive answer to that question JudithEllen.

Malio

Any advice with this would be much appreciated. I currently have a Halifax Variable Rate Cash ISA Saver and a Variable Rate TOISA with IF.com. I would like to transfer both to a Natwest Cash ISA.

1. Is it possible to transfer both together to Natwest?

2. Would would happen to the interest I have gained in each so far this financial year? Halifax refer to a penalty of 180 days interest (ie all the interest so far gained this financial year!) but it's unclear whether this only applies to Fixed Rate accounts or to Variable Rate accounts too.

Baldur

Malio wrote: »

1. Is it possible to transfer both together to Natwest?

Yes, they can both be transferred into a Natwest ISA - they are both simply Cash ISAs since the 6th April, when the term 'TOISA' ceased to exist.

2. Would would happen to the interest I have gained in each so far this financial year? Halifax refer to a penalty of 180 days interest (ie all the interest so far gained this financial year!) but it's unclear whether this only applies to Fixed Rate accounts or to Variable Rate accounts too.

There is usually no penalty on transfer of variable rate products but you need to check the particular terms & conditions which you would have received when opening your ISAs.

d40dj4

I too was wondering if anyone knows anything about whether or not you will lose the ISA status when reclaiming the money from Icesave? Would it be better to wait a while before reclaiming and perhaps do it at the same time as opening an ISA with another bank?

Chy_2

I phoned the HMRC number as posted elsewhere in this forum - the answer was they don't know.

I was told that for Northern Rock special dispensation was made for the people that withdrew their money from the ISA accounts (I CANNOT confirm this actually happened) and they expect a similar deal to be announced.

Watch the press!

Baldur

d40dj4 wrote: »

I too was wondering if anyone knows anything about whether or not you will lose the ISA status when reclaiming the money from Icesave? Would it be better to wait a while before reclaiming and perhaps do it at the same time as opening an ISA with another bank?

No one can answer that question - as the ISA rules stand, you would not be able to withdraw Cash ISA funds and pay them into a different ISA provider in the same tax year but the current situation is unfamiliar territory, with the UK & Icelandic Governments involved.

Suggest that you keep checking the regularly updated news on the main site http://www.moneysavingexpert.com/savings/safe-savings#iceland

carolehdb_2

Hi
I just printed the online transfer form and filled it in, and when I took it to my local Natwest branch the cashier said as I don't usually bank with them I have to open another account with NW, in case I go over my ISA allowance so they have somewhere to put the interest - does this sound right? I don't want another account I'm not going to use!

Baldur

carolehdb wrote: »

Hi
I just printed the online transfer form and filled it in, and when I took it to my local Natwest branch the cashier said as I don't usually bank with them I have to open another account with NW, in case I go over my ISA allowance so they have somewhere to put the interest - does this sound right? I don't want another account I'm not going to use!

It's stupid but it's in the product requirements http://www.natwest.com/personal/savings/g2/isas/cash-isa.ashx

You will also need to hold or open an instant access account. We will use this account to hold your money if you accidentally put more than £3600 a year into your Cash ISA.

fitzal

Hi, can I ask if anyone who is opening one of the "transfer in" ISA's from Natwest has actually had it opened yet? I did mine 2 weeks ago, and nothing (not even the empty new ISA) and I went into my branch today and there seems to be no sign of it, and staff seemed quite confused about this...somebody is meant to be calling me tomorrow. But I just wanted to know whether anyone else has had theirs set up yet??
Thanks