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cash ISA transfer / same provider

edited 19 April 2019 at 1:58AM in ISAs & Tax-free Savings
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greatcrestedgreatcrested Forumite
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edited 19 April 2019 at 1:58AM in ISAs & Tax-free Savings
I have a cash ISA with Yorkshire BS (issue 4). They have recently released issue 5 paying a slightly better rate so I tried to transfer online (can't) and by phone (can't).

Instead they have sent me in the post a "cash ISA internal product transfer application form" which appears to do the job (if somewhat 20th century!).

However on filling it in I see:

" I apply to subscibe to a Cash ISA for the tax year 2019/20 and each subsequent year until further notice"

and

"I declare that I have not subscribed, and will not subscribe, to another cash ISA in the same tax year that I subscrbe to this cash ISA"

I had been under the impression that as long as I didn't put new money in, I could transfer existing ISA's without restriction, and still open a new cash ISA if I wished.

Reading the gov website, it says:
You can transfer your Individual Savings Account (ISA) from one provider to another at any time.
but no mention of transferring to a new product with the same provider. Is the rule different?

If I complete this transfer, and if I wish to contribute my £20K for this tax year to a cash ISA (as opposed to stocks/shares etc) does that meanat I can only do so by adding to this Yorkshire BS (issue 5)?
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Replies

  • Reed_RichardsReed_Richards Forumite
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    I had been under the impression that as long as I didn't put new money in, I could transfer existing ISA's without restriction, and still open a new cash ISA if I wished.

    This is correct
    Reading the gov website...but no mention of transferring to a new product with the same provider. Is the rule different?
    No, the rule is exactly the same.

    Either you have the wrong form or it's a one-size-fits-all form with bits that don't apply. My wife recently did exactly what you are trying to do in branch with no problems.
    Reed
  • colstencolsten Forumite
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    For "subscribe", read "put new money in", and then hopefully it will make sense.

    Although you have to confirm that "I apply to subscribe to a Cash ISA for the tax year 2019/20 and each subsequent year until further notice", you are free to change your mind before making a subscription (before you put any money in). And even after you have made a subscription, you can still request a transfer of all your current year's deposits (may be subject to penalties, depending on the T&Cs of the ISA). I am not sure why they have this clause, but almost all of them seem to have it.

    A transfer of your existing ISA, to another YBS ISA or to another provider, does not affect your ISA limit for the current tax year. You can deposit the full £20K into another cash ISA of your choice, or split it across several different types of ISAs, e.g. £10K into a cash ISA and £10K into an S&S ISA. Or you can, if you so wish, put up to £20K of new money into the ISA you transferred into - subject to that ISA allowing further deposits.
  • greatcrestedgreatcrested Forumite
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    Pleased to hear you both confirm my belief. But I'm wary about signng a form where I'm agreeing that I" will not subscribe, to another cash ISA in the same tax year."
    And I strongly suspect if I delete that clause they'll reject my application!


    Think I'll give them a ring and complain about their wording.

    For "subscribe", read "put new money in", and then hopefully it will make sense.
    yes except it would then read:


    "I apply to put new money in to a Cash ISA for the tax year 2019/20 and each subsequent year until further notice" which clearly does not help.....
    If I include a blue link in my post, click and read it before posting a follow-up question. The answer may be in the link.

  • edited 19 April 2019 at 12:48PM
    david78david78 Forumite
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    edited 19 April 2019 at 12:48PM
    Pleased to hear you both confirm my belief. But I'm wary about signng a form where I'm agreeing that I" will not subscribe, to another cash ISA in the same tax year."


    But you are not. The declaration is:


    I declare that I have not subscribed, and will not subscribe, to another cash ISA in the same tax year that I subscribe to this cash ISA


    Providing you only subscribe to one cash ISA you will be fine.


    These are standard clauses you have to agree two when you open a cash ISA, even if you are only opening one to transfer in previous years' ISAs.They give you the option of using the ISA for the current year, but you don't have to do so.


    It will be the same even if you use a different provider.
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