Confused about ISAs

10_66

When you've decided who you want to transfer your existing ISA's to, in addition to completing their application form, you need to complete transfer forms as well (the provider who you wish to transfer to will let you have these if you ask for them with the application form). They will then arrange the transfer.

Paul_Herring

AbbieCadabra wrote: »

i think i'm being really thick, forgive me!

2006/07 mini cash Isa with Smile £3000 + interest
2007/08 mini cash isa with Egg £3000 + interest

so for 2008/09 i want a new cash ISA with £3600 (new limit, yes?)

Yes, new limit.

at a good rate - presumably i have to get smile/egg to transfer to the new a/c, whoever that will be with,

No...

or can the new one transfer both of the old ones?

Yes.

The new one will provide you with forms (where you should request the 'full balance + interest' (as opposed to a set amount - do not try and guess the total+interest here) to be transferred,) which you fill in and return to the new one.

The new one will then send one to Smile, one to Egg, whereupon Egg and Smile will (hopefully quickly) draw up a check to send back to the new one who will then (again, hopefully quickly) cash them and add the amounts to your new account, along with any new contributions you may have made.


In summary, you fill out one form per old bank saying "I authorise you to transfer all my funds to <new bank>" and send the forms to the new bank.

Some time later, your new bank receives the funds.

but i need it 'simple' fashion please!

Simple enough?

lucy_w86

My interest gets paid yearly, therefore, because I opened my first ISA in May 2007, does that mean my interest gets paid in May 2008?

jem16

lucy_w86 wrote: »

My interest gets paid yearly, therefore, because I opened my first ISA in May 2007, does that mean my interest gets paid in May 2008?

Maybe, maybe not.

Some ISAs pay interest on 5th April (tax year end) and some pay on anniversary of opening.

onejontwo

As a matter of interest ,(sorry about the pun!) what would the difference be as a result of leaving the full £3000 in a nationwide ISA, as opposed to trasfering it to one of the higher interest ISA's (6.5% was one figure that was previously mentioned?) ie. would it be only a matter of saving pennies or pounds and worth the trouble?

sloughflint

onejontwo wrote: »

As a matter of interest ,(sorry about the pun!) what would the difference be as a result of leaving the full £3000 in a nationwide ISA, as opposed to trasfering it to one of the higher interest ISA's (6.5% was one figure that was previously mentioned?) ie. would it be only a matter of saving pennies or pounds and worth the trouble?

Nationwide is 5.05% for £3k so a difference of £43.50 over a year.
If you add £3600 on 06/04 then the difference is £95.70 on £6600

AbbieCadabra

Paul_Herring wrote: »

In summary, you fill out one form per old bank saying "I authorise you to transfer all my funds to <new bank>" and send the forms to the new bank.

Some time later, your new bank receives the funds.

Simple enough?

yes, crystal clear with knobs on, thank you!

thanks to 10_66 too :T

lucy_w86

jem16 wrote: »

Maybe, maybe not.

Some ISAs pay interest on 5th April (tax year end) and some pay on anniversary of opening.

Right...ok...

Sorry if I sound dumb but can I open an ISA now (ready for 08/09 tax year) and then transfer at a later date or do you have to transfer when you open it?

jem16

lucy_w86 wrote: »

Right...ok...

Sorry if I sound dumb but can I open an ISA now (ready for 08/09 tax year) and then transfer at a later date or do you have to transfer when you open it?

You either open an ISA by paying money into it or open an ISA by transferring. You can't just do neither.

lucy_w86

jem16 wrote: »

You either open an ISA by paying money into it or open an ISA by transferring. You can't just do neither.

Ok...so because I already have an ISA for the 2007/8 tax year, I can not open my new ISA until after 6th April ready for the 2008/9 tax year?