Transfer Cash ISAs Discussion Area

whu

vickisprings wrote: »

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!

Hi
1 No
2 You can open a new one
3 Yes but you could lose a bit of interest each time you transfer
Sounds like a decent plan
Remember to sign the transfer forms with the new provider and they will arrange the transfers - guidelines say it should take 30 days to transfer an ISA

vickisprings

Thanks Baldur and Whu for your advice. I hadn't realised it may take a while to transfer money (and thus you lose interest while it's in transit) so thanks for pointing that out.

rb10

You'll only lose interest if you transfer to another provider. If you transfer to a different account within the same bank, then that will usually be with no loss of interest.

brookerbabyisababy

i currently have a first direct e-isa. however they have increased the rate for new customers and banned existing from getting the rate. so i have to transfer out and then in to get the new rate. what would be the easiest way to do this?

Baldur

brookerbabyisababy wrote: »

i currently have a first direct e-isa. however they have increased the rate for new customers and banned existing from getting the rate. so i have to transfer out and then in to get the new rate. what would be the easiest way to do this?

It could take 30 days (or possibly longer) to transfer to a new provider and a similar time to transfer back - do you think that the rate is still going to be available in two months time?

There are fixed rate Cash ISAs available, which accept transfers and which offer a similar rate (3%-3.2%) to the FD product - see this post (scroll down). Simply transferring to one of those products should at least guarantee the rate which you will receive.

[Deleted User]

Hi, slightly confused about an ISA transfer, any advice welcome. I currently have an A&L issue 4 ISA opened July 08, and want to transfer that to an issue 5 also with A&L, however on the transfer forms it states that I must declare that " I have not subscibed and will not subscibe to another cas isa in the same tax year as I subscibe to this cash ISA", so basically does that mean that I can't transfer before the next tax year starts? And, if I transfer next tax year I am stuck with the new ISA for that year? Make sense?

Crabman

ubercash wrote: »

Hi, slightly confused about an ISA transfer, any advice welcome. I currently have an A&L issue 4 ISA opened July 08, and want to transfer that to an issue 5 also with A&L, however on the transfer forms it states that I must declare that " I have not subscibed and will not subscibe to another cas isa in the same tax year as I subscibe to this cash ISA", so basically does that mean that I can't transfer before the next tax year starts? And, if I transfer next tax year I am stuck with the new ISA for that year? Make sense?

Transferring an existing ISA is different to subscribing, which is the term for putting new money into a cash ISA.

You can transfer an existing ISA as many times as you like (though may lose interest during the transfer period) but can only put new money into one ISA during each separate tax year.

As long as you don't put any new money in, it won't count as 'subscribing' and thus should be fine.

jerrymind

dogs_basket wrote: »

The FAQs on the website answer many of these questions:

• Do you accept transfers in from other providers into the Easy Access ISA? Yes you can transfer in Mini Cash ISAs held with other providers into the Icesave Easy Access ISA. You can choose to make a transfer in as part of your application or, once your account is open, simply log in and select the option to make a transfer-in to your Easy Access ISA.
  Transfers in from other providers do not count towards your annual subscription limit. There is no restriction to the number of providers you can transfer-in from.

I never knew this? Where did you get the information from. Any site you can refer one too?

Thanks anyways

Baldur

jerrymind wrote: »

I never knew this? Where did you get the information from. Any site you can refer one too?

Presumably from the Icesave website, from the quoted phrase "Yes you can transfer in Mini Cash ISAs held with other providers into the Icesave Easy Access ISA".

The primary source of ISA information is http://www.hmrc.gov.uk/isa/isa-guidance-notes-2008.pdf

pigeonpie

does anyone know if a transfer out of Barclays (last year's tax haven ISA) would incur an exit fee - or take so long that the new ISA with another provider would not happen before 5 April? They were incredibly inefficient when opening it last year.
thanks