Transfer Cash ISAs Discussion Area

Lokolo

Oh right, its because you haven't contributed to an ISA this year, which you in yourself just said you haven't.

Transfers don't count as using your allowance.

antispam246

boobbby wrote: »

Bit of a catch 22. Your right there are better rates than those with existing ISA's but he problem is once you have moved to the present better rate of interest you will have lost the tax free status that now exist with your fund. Could be in the future ISA's will again be the way to save and you wont have any substantail fund to invest in tax free accounts!!

Thank you for pointing something so obvious to me, I actually mean that. I can't believe I actually overlooked that point. I'm considering the Natwest ISA right now, I already have a savings account with them so it's looking theb est bet for transfers in unless anything comes along soon.

Edit: Off the top of anyones head, are there any penalties for withdrawals from the Natwest ISA (3%), should I need to move later if a better offer comes along I don't want to be tied into too many penalties other than the possibility of a small loss of interest during the transfer process.

purple_mara

Lokolo wrote: »

Oh right, its because you haven't contributed to an ISA this year, which you in yourself just said you haven't.

Transfers don't count as using your allowance.

I don't follow. I realise transfers don't count as using your allowance.

I want to:
a) open their ISA and put in some money from my currently unused 2008/9 allowance + transfer from my rubbish tessa funds ISA into this ISA
or
b) open the ISA paying in nothing and transfer from my rubbish tessa funds ISA into this ISA
I really don't mind which but NatWest don't seem to want to let me do either.

Am I missing some key point?

D1zzy

purple_mara wrote: »

I have a NatWest "Cash Isa - Tessa funds" account paying 0.29%. I want to transfer this to the NatWest E-ISA.

Branch staff told me I needed to open an E-ISA online paying in a nominal £1 and then fill in the "transfer from another provider" form. However, online system won't let me do this as I already have an ISA with them.

Phoned the help line on an annoyingly expensive 0845 number who said I can't do that because you are not allowed 2 ISAs at once and my best option was to transfer it to one of their ordinary savings accounts!

Can anyone advise me of my best option (and if either of their conflicting statements have been true).

Son in law had same problem last year and was told that he should move his existing ISA out; open a new one and then move it back

purple_mara

D1zzy wrote: »

Son in law had same problem last year and was told that he should move his existing ISA out; open a new one and then move it back

Grr. I thought the point about ISAs were that they were supposed to be straightforward.

D1zzy

Just noticed this criminal advice you were given..
"Phoned the help line on an annoyingly expensive 0845 number who said I can't do that because you are not allowed 2 ISAs at once and my best option was to transfer it to one of their ordinary savings accounts!"
...transfer to a savings account & lose your tax free status Any Bank advisor giving that advice should be shot!. (son in law was similarly advised and hit the roof)

boobbby

purple_mara wrote: »

Unfortunately I think this may just take up a lot of my time and get me nowhere. I made them go and fetch a manager this morning in the branch and that was their answer.

I haven't paid into an ISA during tax year 2008/2009. My ISA with them being a TESSA only funds one means I haven't been able to pay anything into it since it became an ISA. So I really can't see why I can't have 2 ISAs at once, but given the quality of advice from the helpline staff, I can't see how i'm going to get any joy.

But definitely want to do something better with my pennies.

This is from their site:
Not paid money into your Cash ISA for a year?

Download our re-activation form (PDF, 103k).
UK regulations say that we have to lock your account if you don’t make any deposits for a year. This form lets you pay money into our Cash ISA again – the more you save, the higher the interest you’ll earn. Simply take your completed form into your local branch or post it to: Central Tax Unit, 9th Floor, 1 Hardman Boulevard, Manchester M3 3AQ.
Of course, you could simply open a new Cash ISA with us for the current tax year.

Like many other providers they wont let you transfer an existing ISA already with them to your new Cash ISA but I can see any reason why you cant open a new ISA for this tax year. You should then be able to add to it the next tax year.
Looks like for the earlier Tessa Isa will have to be transfered out then back in again to get around that internal transfer rule. (like other providers it is to stop people getting a better rate when they bring out a new ISA)

stevo1973

Moving ISA's within the same companies for better rates.Does this effect your ISA yearly allowance.

rb10

stevo1973 wrote: »

Moving ISA's within the same companies for better rates.Does this effect your ISA yearly allowance.

Transferring an ISA anywhere (whether within the same bank or elsewhere) does not count towards your annual allowance, provided that you do it as a proper transfer (i.e. the new bank arrange it all, you don't actually close the old account or withdraw the funds yourself).

The £3600 limit applies only to new money, that was not previously in an ISA.

antispam246

Questions
I have an ISA with Barclays Tax Haven from past 2 years allowances.

Can I keep this open and also open the Barclays Golden ISA with this years new allowance, so I have both ISA's?

Can I then later, transfer from both these ISA's into a single new ISA later?