Transfer Cash ISAs Discussion Area

boobbby

spike87 wrote: »

I transferred my ISA to A&L just a couple of months back when they were paying 3.5% interest. The easyISA has now dropped to 2.5% and I'm thinking of transferring again to Natwest, who I already have a savings account with. Am I ok to transfer the ISA again even though I've only been with A&L for 2 months?

good idea ... that will teach A&L to keep dropping their rates (which they do all the time)

Baldur

spike87 wrote: »

Am I ok to transfer the ISA again even though I've only been with A&L for 2 months?

Yes, you can apply for an ISA transfer whenever you like. My last one from A&L was within a couple of weeks of being with them.

john-306

I'm assuming all this opening/transfering of new isas will nave a negative effect on your credit rating?

KTF

Generally savings accounts are not credit checked as the bank is not lending you anything so is not concerned about your 'worthiness'.

Hadrian

I have tried valiantly to get an answer that I can understand to this simple query but to no avail. Can I ask the 'knowledgeable's' here to assist me in language I can understand?
I bank on-line and have a 2008/9 cash ISA with Barclay's, which includes a 1% bonus ending on April 6th 2009. I wish to terminate it around this date. I will then take out another 2009/10 cash ISA, not Barclay's. How do I do this?
Am I right in thinking it's as simple as transferring the ISA totally into my current account (via the on-line banking website without reference to Barclay's) and then depositing it into the new ISA after this has been 'set up'?

Deleriad

Hadrian wrote: »

I have tried valiantly to get an answer that I can understand to this simple query but to no avail. Can I ask the 'knowledgeable's' here to assist me in language I can understand?
I bank on-line and have a 2008/9 cash ISA with Barclay's, which includes a 1% bonus ending on April 6th 2009. I wish to terminate it around this date. I will then take out another 2009/10 cash ISA, not Barclay's. How do I do this?
Am I right in thinking it's as simple as transferring the ISA totally into my current account (via the on-line banking website without reference to Barclay's) and then depositing it into the new ISA after this has been 'set up'?

Don't do this. Someone will correct me if I am wrong and misunderstanding you.

Once you have money in an ISA you can TRANSFER it into another ISA with any other bank that allows TRANSFERS IN. This requires you to fill in a transfer form. Not all banks let you transfer other ISAs in. When you transfer an ISA it stays in the system and therefore stays tax free.

If you take money out of an ISA it immediately loses its Tax free status. You can of course then put some or all of that into a new ISA but it counts as "new" money.

E.g. Case 1. You have 3500 in an ISA paid in for the 08-09 tax year. You take that money out and pay it into a new 09-10 ISA. This means you have now used up £3500 of your 09-10 ISA allowance (currently £3600). You could pay in up to another £100 during 09-10.

Case 2. You have 3500 in an ISA paid in for the 08-09 tax year. You transfer that money to another ISA. You still have your allowance unused for 09-10. In theory you could pay in another £3600 in 09-10.

The only reason ever to do Case 1 is: you have no money you can save in 09-10 and the ISA you wish to open in 09-10 does not allow transfers in. Even then, I would still be tempted to look for an ISA that allowed ISAs in on the off chance I can save some money in 09-10 in a new ISA.

For the record. I currently have a Barclays "Tax Haven" ISA from 08-09 which is now down to 2%. I am transferring that to a Halifax account which allows transfers in and guarantees a minimum rate of 3%. After April 5 I will be opening an 09-10 ISA and putting new money into that. Probably a Barclays Golden ISA.

Think of ISA money as being in Funland. While in Funland your money can move around all of its favourite bits for free. What's more, each year, you're allowed to send some more money to Funland to join it. However, if any of your money leaves Funland it isn't allowed back in unless it puts on new clothes and looks like new money that's never been there before.

Hope that helps more than it confuses.

vigman

Deleriad wrote: »

For the record. I currently have a Barclays "Tax Haven" ISA from 08-09 which is now down to 2%. I am transferring that to a Halifax account which allows transfers in and guarantees a minimum rate of 3%. After April 5 I will be opening an 09-10 ISA and putting new money into that. Probably a Barclays Golden ISA.

.......after April 5th, why not put your 09/10 allowance in the Halifax account rather than the Barclays Golden ISA???????

TIA

Vigman

Sarahcat

Baldur wrote: »

See - http://www.firstdirect.com/savings/cash-eisa-apply.shtml

P.S. It's probably not a great idea to post in blue text, as links are shown in blue - could be rather confusing for new forum users.

Sorry about that!

Deleriad

vigman wrote: »

.......after April 5th, why not put your 09/10 allowance in the Halifax account rather than the Barclays Golden ISA???????

TIA

Vigman

Better rate. Halifax is 3% minimum while Golden is 3.51% variable. Barclays do have a habit of dropping rates quite quickly but I doubt the Golden will drop below 3% in the next 12 months or Halifax will increase above 3%. Then again, I won't be in a position to put money into my 09/10 ISA until July so I'll have to assess the rates then.

Baldur

Deleriad wrote: »

I doubt the Golden will drop below 3% in the next 12 months or Halifax will increase above 3%.

If you mean the Halifax Direct ISA Reward, it's a fixed rate of 3%, not a 'minimum of 3%' - http://www.halifax.co.uk/savings/isa-direct-reward.asp?source=NETGOOGLSAVESA480005

Fixed interest rate (AER) paid annually on 5 April 3.00%