Transfer Cash ISAs Discussion Area

The-OC

could someone clear up some confusion for me?
if you transfer a previous year's isa to a new provider (in this case natwest e-isa) after april 5, do you then have to have your current year 2009/10 isa with them as well?
or could i put the previous year into natwest and then open my 2009/10 isa with someone else - barclays for example?
hope that makes sense...
thanks

littlemrtinkle

THEOC - Just open another isa with another provider, but do not place any more money in last years isa. you can also move previous years isa's to other providers by filling out transfer forms with new isa, not all isas accept transfers in.

Baldur

The-OC wrote: »

if you transfer a previous year's isa to a new provider (in this case natwest e-isa) after april 5, do you then have to have your current year 2009/10 isa with them as well?

No you don't.

or could i put the previous year into natwest and then open my 2009/10 isa with someone else - barclays for example?

Yes you could.

hanny186

Hi,

I have a cash ISA with C&G, but have not put any money in yet this year. I now have some money I would like to put in before april, but have noticed that the interest rate has gone quite low. I would like to switch my ISA, but I'm not sure if its better to put my money in my current one in and wait till after april to switch, or to switch now before I put my money in? If I switch it now will i lose any interest accumulated over the year or is it calculated as a one off on the balance?

I hope my enquiry makes sense and someone can help!
thanks,
hannah

Lokolo

Firstly you can transfer as many times as you want in a year.
Secondly, interest s pro rata, so if you have had money in for 6 months, you get 6 months of interest.
Thirds, top it up now by £3,600. Then transfer. You can, on April 6th, open a new ISA and deposit a further £3,600 or you can top up the one again by another £3,600.

Baldur

hanny186 wrote: »

Hi,

I have a cash ISA with C&G, but have not put any money in yet this year. I now have some money I would like to put in before april, but have noticed that the interest rate has gone quite low. I would like to switch my ISA, but I'm not sure if its better to put my money in my current one in and wait till after april to switch, or to switch now before I put my money in? If I switch it now will i lose any interest accumulated over the year or is it calculated as a one off on the balance?

If you don't pay the money in before April 5th, you will lose the current tax year's ISA allowance and anything that you pay in from April 6th will form part of your 2009/10 allowance.

Transferring your ISA (if it's an easy access one) usually causes the old provider to add any interest earned up to the date of the transfer, the closing balance is then sent to the new provider. You need to check the Terms & Conditions of your C&G account to check for any potential catches, as I don't know that account.

FinancialindependentIN6

Morning, I am new to this so sorry in advance if this has already been asked. I have a 2007/08 ISA with ING Direct rate is 1% can I transfer to a better rate? and if so with who?

thanks in advance

Baldur

FinancialindependentIN6 wrote: »

Morning, I am new to this so sorry in advance if this has already been asked. I have a 2007/08 ISA with ING Direct rate is 1% can I transfer to a better rate? and if so with who?

Yes, you can transfer Cash ISAs at any time, subject to the Terms & Conditions of the particular account(s).

As to choosing the new ISA provider, for a start check out this post (scroll down to find those variable & fixed-rate accounts which accept inward transfers).

vickisprings

Just getting to grips with ISAs... I have 2 instant access ISAs (Halifax and Nwide), both opened years ago with no money put into them for several years and now on poor rates.

I'd like to
(a) transfer those 2 old ISAs to a better paying ISA
(b) to use my 2008/2009 allowance soon!

Questions
(1) If I transfer my 2 old ISAs to another provider, does that count as having opened a new ISA in 2008/2009?
(2) Do I have to pay my 2008/2009 allowance into the transferred ISA or can I open a new one elsewhere?
(3) Can you transfer to new provider as many times as you like in a tax year and it won't count as a new ISA?

My plan was to open a Nat-West e-ISA (allows transfers; is instant access which I want).
Then to transfer my old ISAs, add in my 2008/2009 allowance, and then after April 6th to add in for 2009/2010 - so everything is one ISA.
Then to be a bit more on the ball in 2009/2010 and transfer if I see a better offer.

Does that seem sensible or am I missing something obvious?

Thank you!

Baldur

vickisprings wrote: »

Questions
(1) If I transfer my 2 old ISAs to another provider, does that count as having opened a new ISA in 2008/2009?

No.

(2) Do I have to pay my 2008/2009 allowance into the transferred ISA or can I open a new one elsewhere?

You can do either, you certainly don't have to pay it into the same account as the transferred funds.

(3) Can you transfer to new provider as many times as you like in a tax year and it won't count as a new ISA?

Yes, but it would be pointless to transfer too often, as you'd lose at least a small amount of interest in each transfer process.