Tell us you cash ISA questions

Options
1…2425272930…48

Comments

  • djnield
    djnield Posts: 19 Forumite
    First Anniversary Combo Breaker
    Options
    Following the current recommendation of opening a Shawbrook Savings Account (£1000 minimum opening deposit) I want to end my Post Office ISA.

    I always thought you couldn't simply close down an ISA without interest penalties so, unless that's changed, how can I transfer my current ISA balance to a new ordinary savings account?
  • colsten
    colsten Posts: 17,597 Forumite
    First Anniversary Photogenic Name Dropper First Post
    edited 20 August 2016 at 10:32AM
    Options
    You have to withdraw the money from your ISA if you want to deposit it into a non-ISA account. Whether there's an interest penalty depends on the type of ISA. There is no penalty for withdrawals from instant access ISAs but there will be one if the ISA is fixed term. Which type of ISA do you have? What do your T&Cs say?

    I can't comment on "the current recommendation of opening a Shawbrook Savings Account" as I am not aware of it. A quick glance at Shawbrook rates suggests, however, that there are still better rates available in various current accounts. A lot depends on the amount of money involved.
  • lisyloo
    lisyloo Posts: 29,617 Forumite
    Name Dropper First Anniversary First Post
    Options
    How long does cash ISA transfer money "dissappear".
    I mean how long between it going out from the outgoing account to appearing in the new one?
    I remember in the old days this used to be done by cheque accompanying ISA paperwork, but ad assumed they would have improved on that.
  • badger09
    badger09 Posts: 11,211 Forumite
    First Post First Anniversary Name Dropper
    Options
    lisyloo wrote: »
    How long does cash ISA transfer money "dissappear".
    I mean how long between it going out from the outgoing account to appearing in the new one?
    I remember in the old days this used to be done by cheque accompanying ISA paperwork, but ad assumed they would have improved on that.


    https://www.gov.uk/individual-savings-accounts/transferring-your-isa

    I've had mine take anything between 3 days and a couple of weeks
  • lisyloo
    lisyloo Posts: 29,617 Forumite
    Name Dropper First Anniversary First Post
    Options
    That's for the overall process. I'm talking about the actual financial transfer, which used to have to be by cheque through the post.
  • masonic
    masonic Posts: 23,278 Forumite
    Photogenic Name Dropper First Post First Anniversary
    Options
    lisyloo wrote: »
    That's for the overall process. I'm talking about the actual financial transfer, which used to have to be by cheque through the post.
    Some providers still use cheques. The last transfer I did was between two major banks and went electronically. IIRC the money was credited the same day my old ISA was closed.
  • lisyloo
    lisyloo Posts: 29,617 Forumite
    Name Dropper First Anniversary First Post
    Options
    Thanks, it's just a little disconcerting when it's nowhere :-)
  • rhp485_2
    rhp485_2 Posts: 4 Newbie
    Options
    My wife and I have a number of fixed rate cash ISA's streaching over a fixed period of one or two years. Can we put all of them into the highest rate fixed rate cash ISA account?
  • badger09
    badger09 Posts: 11,211 Forumite
    First Post First Anniversary Name Dropper
    Options
    rhp485 wrote: »
    My wife and I have a number of fixed rate cash ISA's streaching over a fixed period of one or two years. Can we put all of them into the highest rate fixed rate cash ISA account?

    Not entirely sure what you're asking:o but here goes..

    Obviously, you cannot merge your own and your wife's ISAs:cool:

    There is nothing in HMRC ISA rules which prevents you putting several cash ISAs together. The only rule is that all current year subscriptions (ie new money paid in) must be kept together.

    Most fixed rate/fixed term ISAs allow only a short window to either pay new money in, or to arrange for other ISAs to be transferred in, typically 2 - 4 weeks. So, unless your 1 & 2 year FRISAs mature close together, you won't be able to get them all together immediately.

    However, what you could do, is have the first to mature transferred into an instant access ISA and then as the others mature, arrange for them to be transferred to the same instant access one. When they have all matured, you could then arrange for the transfer to the best paying fixed rate you can find.

    If that isn't what you were asking, please spell out what you want to do:)
  • BazBoy
    BazBoy Posts: 1 Newbie
    Options
    Hi, I've read on the forums that it is ok to open 2 isa's in one tax year. One can be funded by new money up to the allowance and one by transfer from a previous years isa.
    My problem is that I opened a new one earlier this year with new money and now another which I'm transferring an old fixed rate isa that has expired to. I think this is ok but unfortunately when opening it I thought it required an initial deposit and transferred a nominal £40 in which is new money although does not take me over the allowance.
    Question is if I now remove the £40 will I still be within the rules ? I've tried calling the HMRC Isa help line but I could tell that the guy didn't have a clue. His response was just leave it and we'll contact you after April 2017.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 248K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards