Moving ISA

niklis

Hi,

as there is now a new good offer from Barclays, I would like to know how to "move" my money from my existing provider to Barclays.
I know that it is generally advised to ask the new provider for a form to move them, but Barclays explicitly excludes this option.
In this case, do I have to close my account take the money to my current account and then simply open a new ISA at B.?

Thanks,
Peter

salty_seadog

if i'm right and you are talking about the "cash haven" isa i don't think they accept transfers, just new money...

bryanb

If you close an ISA you lose the tax free status, transfer is the sensible option.

niklis

Yes, but how to do it?

Would I loose my tax tree status, when I close the current ISA in this very late tax year and open the new one at Barclays in the new year?

King_Weasel

niklis, any withdrawal from any existing ISA cannot be replaced. Though if you haven't reached the current year's allowance you can still top it up.

You cannot move money directly into the new Barclays ISA - that's their rule, not the government. And you can't mix cash ISA providers in any 1 year - government rule. So, if you already have an ISA this year you cannot open a Barclays ISA this year, even if you haven't used up this year's allowance. So there's no point in closing your existing ISA this year.

The key question in your situation is: do you expect to have new cash to save during 2008/9? If the answer is yes - or even maybe - you would be advised to protect next year's ISA allowance for this new money and not use it on money from an old ISA that you have sold.

Barclays isn't the be-all-and-end-all. Find another supplier with an attractive rate that will accept transfers and switch your present ISA into that. You do this by applying to the new provider and asking them to make the transfer.

Only if you are pretty sure you won't have new money to spare next year should you consider selling your old ISA so as to buy the Barclays. And even then there's no point doing it before April.

niklis

Nobody else an idea?

pem2

Barclays Cash ISA Tax Haven ISA – Specific Terms and Conditions March 2008 2 The maximum sum you can subscribe is £3,000 per tax year until 5th April 2008 and £3,600 per tax year from 6th April 2008 irrespective of any withdrawals. Annual limits are subject to review. Transfers into the Tax Haven ISA of funds currently held in another ISA either with us or another ISA manager are not allowed. This condition replaces condition 2.3 of the General Terms and Conditions below.

Mikeyorks

niklis wrote: »

Nobody else an idea?

You picked up the inference yourself in your first post ..... Barclays don't allow transfers of money in to that ISA. It's got to be 'new' money .... that way they get new customers, but without any of them being able to bring large sums with them.

Several others have repeated it ... so it's not a shortage of ideas .. that's the terms Barclays insist on. So you either look elsewhere (A&L offer 6.25% and accept transfers in) .... or open the Barclays and pay directly into it. You have to decide if you can fund that directly ....or whether it's that valuable to you that it's worth withdrawing funds from your existing ISA in order to do it? The last bit ... isn't normally recommended.

niklis

King Weasel, thank you for the response.
Well, I was thinking: In case I want to switch switch to Barclays, I would close my current ISA at the end of this tax year. Lets say, the end of March.
In the same time, I will apply at Barclays for the new tax 08/09 year for my new ISA with my new allowence. Would that be the right way to go?
As this is my first ISA, I am grateful for your patience.

john.xs

lloyds tsb allow transfers in and are currently offering 6.5 %

knights

niklis wrote: »

Yes, but how to do it?

When you open an ISA that allows 'transfers in', the new ISA provider usually deals with it - if you instruct them so to do.

regards