Transfer Cash ISAs Discussion Area

TheGame7

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Baldur

TheGame7 wrote: »

Anyone able to confirm what the ISA rate for the A&L account of this last year has dropped to? I ask because it had a bonus attached to it for the year.

You can confirm it yourself, for your specific account, by entering the first 3 digits of your account number in the relevant box - http://www.alliance-leicester.co.uk/savings/interest-rates.aspx

If I transfer from it, will I be penalised - e.g. not get the bonus %.

You should check your Ts & Cs - from memory, there was no penalty for early transfer.

jjlothin

Sorry if I'm being thick about this, but I can't get my head round what the difference is between transferring money from an already existing ISA into a different ISA and opening a new ISA.

I transferred from Icesave into Alliance & Leicester at the beginning of this tax year and have since made a few (smallish) payments in.

I'd like to move to a different ISA account (partly because I find A&L sooooo user-unfriendly - partly of course because of the interest rates!) - eg, Scottish Widows.

Should this be possible?

Lokolo

jjlothin wrote: »

Sorry if I'm being thick about this, but I can't get my head round what the difference is between transferring money from an already existing ISA into a different ISA and opening a new ISA.

I transferred from Icesave into Alliance & Leicester at the beginning of this tax year and have since made a few (smallish) payments in.

I'd like to move to a different ISA account (partly because I find A&L sooooo user-unfriendly - partly of course because of the interest rates!) - eg, Scottish Widows.

Should this be possible?

Yes. By filling in an ISA transfer form with the new provider.

Putting money into an ISA means that is your ISA for the tax year. So currently it is A&L. But if you transfer it, it then becomes the new provider, of which you can then top up to the £3600 (so if you have deposited £1000 in A&L this tax year, you can put another £2600 in Scottish Widows once it has been transferred there)

jjlothin

Lokolo wrote: »

Yes. By filling in an ISA transfer form with the new provider.

Putting money into an ISA means that is your ISA for the tax year. So currently it is A&L. But if you transfer it, it then becomes the new provider, of which you can then top up to the £3600 (so if you have deposited £1000 in A&L this tax year, you can put another £2600 in Scottish Widows once it has been transferred there)

Speedy reply - thanks! Tho' I'm still not clear what 'opening a new ISA' - which I gather I would not be allowed to do - means!

Lokolo

jjlothin wrote: »

Speedy reply - thanks! Tho' I'm still not clear what 'opening a new ISA' - which I gather I would not be allowed to do - means!

When they say opening a new ISA they mean subscribe to an ISA which means deposit new money in. Its so people don't get confused with opening multiple ISAs over the same tax year and depositing money into every single one

jjlothin

So a new one is an extra one, in addition to the one already in existence? Just want to make sure, as I have already put 'new money' (since Apr 2008) into my existing ISA!

Baldur

jjlothin wrote: »

So a new one is an extra one, in addition to the one already in existence? Just want to make sure, as I have already put 'new money' (since Apr 2008) into my existing ISA!

A transfer is not 'opening a new ISA' it's merely moving your existing ISA to a different ISA manager - see Chapter 11 http://www.hmrc.gov.uk/isa/isa-guidance-notes-2008.pdf

Lokolo

jjlothin wrote: »

So a new one is an extra one, in addition to the one already in existence? Just want to make sure, as I have already put 'new money' (since Apr 2008) into my existing ISA!

Yeh but once again thats fine (haha lots of rules and shizzle). Basically you've deposited money into A&L making that Cash ISA your subscribed one for the year, but you transfer it all, thus making the new one your subscribed one, like converting basically!

You can then fill it up to whatever you have left.

jjlothin

Thanks, Baldur! I feel stupid asking what are probably very elementary questions but finance is something of a mystery to me!