Transfer Tessa Isa To Cash Isa

NORWICH_FAN_2

Can I Transfer My Existing Tessa Isa Into A Cash Isa But Then Open A New Isa With Someone Else Using My 0809 Allowance Of £3,600. Some Companies With Higher Rate Interest Isas Will Not Accept Transfers But I Need To Move My £12000+ From Where It Is Now Because The Interest Is Ridiculously Low. Could I Move It To A Company That Accepts Transfers And Then Open An Isa For This Tax Year At A Different Company?

KTF

Yes, you can do this or you can transfer it to another provider (assuming they allow transfers in) and add this years allowance on top.

liitleblackcat

Technically, I think that TESSAs disappeared on 6th April this year and they are all now Cash ISAs anyway. I moved mine (worth £12k at the time) with my mini-cash ISA (about £9k at the time) about 3 years ago to the same provider (can't remember who as we have moved twice since then) and there wasn't a problem - it worked just like moving the cash ISA.

NORWICH_FAN_2

What I Want To Do Is Transfer The £12000+ To A Better Isa Which Will Accept Transfers But Then Open An Isa Which Offers A Higher Rate But Is A Different Company To The One I Have Transferred The £12000+ Into. I Don't Know If This Is Possible Or Whether It Would Be Regarded As Two Isas.

Baldur

NORWICH_FAN wrote: »

What I Want To Do Is Transfer The £12000+ To A Better Isa Which Will Accept Transfers But Then Open An Isa Which Offers A Higher Rate But Is A Different Company To The One I Have Transferred The £12000+ Into. I Don't Know If This Is Possible Or Whether It Would Be Regarded As Two Isas.

Yes, this was certainly possible under the HMCE Rules when I transferred my TESSA ISA (around 14k at the time) to a Mini Cash ISA with Birmingham Midshires several years ago - it was simply treated like any transfer of a cash ISA and had no effect on opening another ISA for that tax year with a different provider.

Milarky

With tiered rate ISAs, having a TESSA ISA separate from your other ISAs could be a disadvantage. Any 'TESSA ISA' is just the same as an ISA and as such can be combined into a larger holding if you ask this for this.

Primrose

I transferred a TESSA Only ISA from Britannia to Kent Reliance who will accept transfers in of such products. This is a completely separate transaction from using up your current tax year's Cash ISA allowance.