Moving ISA

Jonbvn

niklis wrote: »

As this is my first ISA, I am grateful for your patience.

How is this your 1st ISA, when your OP states that you already have an ISA????

Anyway, generally speaking I would recommend that you do NOT close your current ISA and open a new one next year. The reason being that you can contribute 3.6k into a new ISA from April, and the interest on your current ISA is also tax-free, and will continue to accumulate.

I would suggest you look for an new ISA that allows transfers in. LTSB is one, and there are several others.

King_Weasel

King_Weasel wrote: »

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.

Ok, niklis?

Toastie

When you say selling it. Do you mean withdraw all the funds in the account? I won't have any new money next year.

If im right when you mean selling the ISA would i get the interest still? Or would i miss out on the interest i would get on the 5th April?

King_Weasel

I mean selling all or part of the ISA so that the money is in your hand, so to speak. Unless there are special terms with your existing ISA (eg fixed rate) you will not lose any interest due up to the date you make the withdrawal. But you won't get interest once you've taken the money - that's why you should wait until the new tax year before closing.

Toastie

So i closed my Halifax ISA on the 1st of April and then put all that money in to my Barclays Account I could then open a Barclays ISA whilst still having some of the interest from Halifax on the 7th of April?

niklis

Many thanks for the replies.
Well, I mean that I started with my first ISA this year.

When I understood all posts correct, than it should be possible to change to the Barclays heaven, although they do not offern the convinient way of what is generally known as "transfer".
I will simply close my current ISA at the end of March, transfer the money to my current account, go to Barclays and open the Cash heaven for the tax year 08/09 and transfer the money into it from my current account.

In reality, it is a change of ISA providers. How should Barclays know, where toe money is coming from. And even if, I am not ordering them to do the transfer for me.
As far, as I understand it, I would only loose the interest of the first days in April.

Did I miss something?

niklis

john.xs wrote: »

lloyds tsb allow transfers in and are currently offering 6.5 %

Nope, its 5,25% AER

http://www.lloydstsb.com/savings/mini_cash_isa.asp

Aegis

john.xs wrote: »

lloyds tsb allow transfers in and are currently offering 6.5 %

Only if you're transferring in a total of £9k or more...

niklis

niklis wrote: »

Many thanks for the replies.
Well, I mean that I started with my first ISA this year.

When I understood all posts correct, than it should be possible to change to the Barclays heaven, although they do not offern the convinient way of what is generally known as "transfer".
I will simply close my current ISA at the end of March, transfer the money to my current account, go to Barclays and open the Cash heaven for the tax year 08/09 and transfer the money into it from my current account.

In reality, it is a change of ISA providers. How should Barclays know, where toe money is coming from. And even if, I am not ordering them to do the transfer for me.
As far, as I understand it, I would only loose the interest of the first days in April.

Did I miss something?

Would this be a possible way of doing it?

jem16

niklis wrote: »

Many thanks for the replies.
Well, I mean that I started with my first ISA this year.

When I understood all posts correct, than it should be possible to change to the Barclays heaven, although they do not offern the convinient way of what is generally known as "transfer".
I will simply close my current ISA at the end of March, transfer the money to my current account, go to Barclays and open the Cash heaven for the tax year 08/09 and transfer the money into it from my current account.

In reality, it is a change of ISA providers. How should Barclays know, where toe money is coming from. And even if, I am not ordering them to do the transfer for me.
As far, as I understand it, I would only loose the interest of the first days in April.

Did I miss something?

What we are trying to tell you is that if you transfer the ISA you currently have to another, better paying provider, you do not use up next year's allowance by doing so. So for example;

ISA 07/08 = £3000
ISA 08/09 = £3600 ( allowance has gone up)

So a total of £6600 plus interest is possible.

With your way you plan to close ISA 07/08 and use the proceeds to open ISA 08/09. This way you have used up £3000 of next year's £3600 allowance so you can only put in another £600.

So a total of £3600 plus interest is possible.

You are basically throwing away the total allowance that you could have by closing instead of transferring.

Hiowever if you feel that you are not going to have another £3600 to put into an ISA and will remain on £3000 then I suppose it doesn't matter.

An ISA is a yearly allowance that you can add to each tax year. A lot of people have over £30,000 sheltered in tax-free ISAs.