Advise on cash ISA transfer

jatinmistry_uk

After reading ISA guide and forums I am still confused and wanting to ask the following:

Initially opened mini cash ISA with A&L for tax year 2004-2005. I paid money in that tax year but nothing in subsequent years.

Instead opened Nationwide mini cash ISA for tax year 2005-2006, 2006-2007 & 2007-2008 and have been payin in that.

However recently realised interest rate on both were low (A&L - 5% & Nationwide - 5.25%). So opened DIRECT ISA for 2008-2009 and asked to transfer A&L 2004-2005 into that. I have left Nationwide as it is as I DO NOT WANT TO PUT ALL EGGS IN ONE BASKET.

However as I can get better interest rates with other suppliers can I transfer Nationwide cash ISA to different provider (not A&L)? I shall not be making any payment into that this year as will be putting in A&L DIRECT ISA.

I hope I have put clear information. Also hoping this question and answer to it will help loads of confused people like me!!!!!!!!!

Thank you in advance.

Baldur

jatinmistry_uk wrote: »

However as I can get better interest rates with other suppliers can I transfer Nationwide cash ISA to different provider (not A&L)? I shall not be making any payment into that this year as will be putting in A&L DIRECT ISA.

Yes, no problem.

debbie42

Yes, it's quite acceptable to transfer a previous year's ISA to a new provider as long as they accept transfers in.

jatinmistry_uk

Thank you for your advise however I have been told that I can not do that.


As I mentioned, I have opened new A&L DIRECT ISA this year in which I have made contribution and transferred previous year's A&L into that.

Because of that I can not now transfer Nationwide to another supplier but only A&L.

Let me know if I have been advised correctly or not.

Thank you.

Baldur

jatinmistry_uk wrote: »

Let me know if I have been advised correctly or not.

You have been advised incorrectly (presumably by A & L?). Previous tax year's funds can be transferred to any new ISA Manager which accepts inward transfers - the fact that you have opened a new Cash ISA, to which you have subscribed & transferred other funds is immaterial, as long as you do not intend to try to add new money to the NW ISA funds in the current tax year.