ISA transfer and funding

missprint

My question is to the helpful people who have replied to ISA queries. I am fairly clear about ISAs except for one point. I want to put my £3600 max into a Barclays 6.5% ISA (I have the cash) but they don't accept transfers. I also have a previous year's ISA in an offset mortgage account. I'm only paying 5.34% interest on the mortgage (and its a tracker, so will reduce further if interest rates continue to fall) so I want to replace this ISA with cash and transfer it somewhere that pays higher than 5.34%. Can I open and fund a new ISA this year as well as open another that will be funded with previous years' contributions?

Lokolo

Yes.

Write a cheque for £3,600 whereever you have that money, write it out to yourself. Take it to Barclays and bank that.

Look around (on this site the ISA page thing) for the next best thing, there was a few about earning 6%+, open an ISA with them, fill out a transfer form (DO NOT TRANSFER IT YOURSELF), and 30 days later wh00pdy doo, its all done.

Baldur

missprint wrote: »

Can I open and fund a new ISA this year as well as open another that will be funded with previous years' contributions?

Yes you are only 'opening one new ISA & funding it with new money.

The transfer does not constitute 'opening' a new ISA, under the HMRC rules. I opened a new Cash ISA last tax year as well as transferring various tranches of previous years' ISA funds to four different ISA Managers over the course of the tax year.

missprint

Thanks very much!