ISA Transfers

jonejon

This should be a quick question to answer, but I haven't been able to find the answer by searching the forums.

I know you can transfer your previous years ISA into a new provider but can you transfer between ISA providers several times throughout a year, or are you limited to one i.e.

1) Apr - Bradford and Bingley
2) May - Bradford and Bingley
3) June - Natwest
4) July - Natwest
5) Aug - Natwest
6) Sep - NS&I
7) Oct - NS&I
8) Nov - NS&I
9) Dec - RBS
10) Jan - RBS
11) Feb - RBS
12) Mar - RBS

I believe you can but just wanted to confirm. Martin says

Only one mini-cash ISA per year.

You can only have a Mini Cash ISA with one provider in any tax year – you can't split it. However you can hold cash-ISAs from different years with different providers.

So in my example I would of had 4 different providers in one year,

Thanks in advance

RayWolfe

Yes, if you wanted to. You may lose interest whilst the money is in transit between suppliers and you ought to calculate the EXTRA interest you will get for a small rate increase.

jaxxbizkit

some providers may also want to charge you for transferring out or in. Always read the terms and conditions before investing

jonejon

Thanks for the quick reply,

I've now got a couple more questions:

I'm planning on transfering my ISA to natwest or RBS to get their 1% transfer bonus and then tranfer out into one of the higher paying accounts once I recieve the cheque.

i.e April transfer £19k to RBS gain 1% for transfer (£190)
May tranfer out from RBS to ICESave

Therefore if they do backdate the interest I would recieve

1. 2 months @ 5.45%APR (From RBS) + 1% Bonus
2. 10 months @ 6.1%APR (From IceSave)
3. Aprox Total
   1. £172 [2 * 86] (RBS Int)
   2. £190 (Bonus)
   3. 965.80 [10 * 96.58] (IceSave Int)
   4. Total £1327.80

Compared to placing straight into a top paying ISA

1. 12 months @ 6.1%APR = 1159.00

Therefore earn an extra £168.80,

Does this sound like a good idea?
Do you know how I would find out who backdates and who doesn't backdate?

Thanks In Advance

RayWolfe

Are you sure you know what you are talking about when you refer to a Transfer Bonus. I don't because I haven't researched it but I doubt they give you one percent of the transfer for leaving the money for a day or so. I suspect that it's 1% per annum!. However, you may know more than I do, in which case let us know and we will all do it!

jonejon

Hi Ralfwolfe, here are the T&C's of the offer

ISA/PEP Transfer cash back offer – 1% up to £450

• The minimum transfer value to qualify for this offer is £1,000 for Cash and £3,000 for Capital Protected Investment transfers
• The products included in this offer are transfers into our Cash and Capital Protected Investment ISA
• Applications for transfers must be received by 11th April and the transfer value must be received by us by 12th May 2008
• In order to remain entitled to the cash back, you must still hold the qualifying investment value on the 12th May 2008
• If you use a transfer of this years subscriptions with another provider to us to maximum fund an ISA with us we will pay you the greater of 1% cash back or £25.
• Cash to Stocks and Shares ISA transfers are not available in this offer

So by the looks of things you only have to have the money in the ISA on the 12th of May, after which point you can then transfer out, unless I'm missing something

RayWolfe

"Applications for transfers must be received by 11th April and the transfer value must be received by us by 12th May 2008
In order to remain entitled to the cash back, you must still hold the qualifying investment value on the 12th May 2008"
If that's what it says then, it looks good. My suspicions and cynicisms suggest the second date should be 2009, else it doesn't make too much sense. Care to provide the link because I couldn't find it and it may be of benefit to others.

Meltdown_2

Natwest leaflet ref. NWIN7 (Jan. 2008) includes the following near the bottom of side 2 :

ISA/PEP Transfer cash back offer – 1% up to £450

• The minimum transfer value to qualify for this offer is £1,000 for Cash and £3,000 for each wrapper for Capital Protected Investment transfers e.g. £3,000 for an ISA transfer and £3,000 for a PEP transfer.
• The products included in this offer are transfers into our Cash and Capital Protected Investment ISA.
• Applications for transfers must be received by 11th April 2008 and the transfer value must be received by us by 12th May 2008.
• In order to remain entitled to the cashback, you must still hold the qualifying investment value on the 12th May 2008.
• If you transfer the current year's (2007/2008) subscription from another provider in order to fully subscribe to your Natwest ISA, we will pay the higher of 1% cashback or £25.
• Cash to Stocks and Shares ISA transfers are not available in this offer.

Slightly different at times to the earlier quoted text, but the relevant part queried by RayWolfe (highlighted by me above) is the same.

jonejon

That's what I thought originally but I checked both website and leaflets, plus also asked in branch and they said 12th May 2008

Here are website links

RBS: http://www.rbs.co.uk/personal/savings-investment/g2/isas/isacashback/isacashback-terms.ashx

Natwest: http://www.natwest.com/microsites/personal/mini-cash-isa/terms.asp

RayWolfe

Thanks very much for that ... seems a good offer, assuming their rates are reasonably competitive.
jonejon, looks like you have a cunning plan! Good luck.