Transferring a HTB ISA to another HTB ISA

I opened a HTB ISA with Lloyds in early December 2018, I deposited £1000.00 and then set up a S/O for the 13th December of £200.00 and then every month after that, so only a further £200.00 in January was paid into it to date, I then was looking at MLs website early this month(February) and decided to transfer it to Barcleys to take advantage of the higher interest rate. The transfer was all possible(done in branch) and is in process but I was told that I could only transfer £1200.00 of it as this is the maximum opening deposit for HTB ISA's which I was aware of but I had £1400.00 in the HTB ISA with Lloyds, they then explained that the full amount would have to be taken from my old HTB ISA but a cheque of £200.00 plus the minimal interest I've earned would be returned to me to do what I wanted with! Is this correct?

If I am thinking straight they are saying that if I had say £4000.00 in my Lloyds HTB ISA & I then opened up a HTB ISA with Barcleys with a £1200.00 initial deposit, £2800.00 would be returned to me? this doesn't seem right to me as you've got to start again and you don't get those months back, your then left with a pocket full of cash & limited to only paying in £200.00/month! I cant find any information on this anywhere & as I went ahead with this on Mr Lewis's advice to chase the better interest rates I think he needs to be clearer about the transfer process of HTB ISA's as its always made out to be easy but in my eyes you can loose a lot!

Comments

  • masonic
    masonic Posts: 23,071
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    No this is not correct, existing HTB ISA subscriptions should have been accepted and the usual £200 per month calculated thereafter. Did you complete an ISA transfer form or the electronic equivalent and make it clear you were transferring from another HTB ISA?
  • I didn't fill out a ISA transfer form on paper it was done on their computer, I made it very clear that I was transferring from another HTB ISA as they asked me for my HTB ISA details.

    I have read time after time that I must not simply withdraw the money from it but Transfer it to another to keep my Tax Free status so well rehearsed on that.
  • masonic
    masonic Posts: 23,071
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    Bank staff are notoriously uninformed when it comes to ISAs. You were probably just misinformed. You may need to be persistent until you speak to someone who understands and can confirm the correct answer.
  • Hey anybody out there..........Mr Lewis you need to raise your head on this one as there's no information out there(including on MSE website & forum) on this issue.......... :rotfl:


    I am just after some clarification of the transfer process of an HTB ISA from one provider to another.


    I 've been told the whole amount has to be withdrawn from my old HTB ISA but can the whole amount be transferred to the new HTB ISA?


    My bank has turned around and said that it cannot as the maximum you can open up an HTB ISA is £1200.00, anything over the £1200.00 opening limit will be paid back to you/me in cheque form.


    Mr Lewis says chase the interest rates around to get the most out of your money but no mention of the above scenario at all, so is this correct?


    Any response would be appreciated.
  • Alexland
    Alexland Posts: 9,653
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    Land2019 wrote: »
    I 've been told the whole amount has to be withdrawn from my old HTB ISA but can the whole amount be transferred to the new HTB ISA?

    Whoever told you that needs additional training as it is incorrect.
    Land2019 wrote: »
    My bank has turned around and said that it cannot as the maximum you can open up an HTB ISA is £1200.00, anything over the £1200.00 opening limit will be paid back to you/me in cheque form.

    In the case of a transfer you would open the account with a zero balance (no contribution) and complete the new provider's ISA transfer paperwork and they will arrange between themselves for the existing money to be moved.

    Alex
  • A quick update,


    My whole HTB ISA with Lloyds has been transferred to my new Barcleys HTB ISA(£1403.00), I have just contacted them as it looks like I was misinformed to ask them if I can now pay £200.00 into it for Feb so I don't lose out on a month.


    They have just confirmed (Barcleys) that I AM only able to transfer £1200.00 into their HTB ISA and the excess will be paid back to me! so I WASN'T misinformed! My head is about to burst!


    So I repeat - if I had £4000.00 in a HTB ISA I would only be able to transfer £1200.00 and I'd get £2800.00 paid back to me, so basically I start again!


    This isn't explained in any of the HTB ISA information provided by the banks, on the web or on MSE's website, very very disappointed, I thought of all people Martin Lewis was the one who looks out for the common person.


    Why is it always made out to be easy when it simply isn't, why is it made out that you can simply transfer from one provider to another and carry on as normal when in reality you stand to lose out considerably.


    Chasing the interest rates around for HTB ISA's simply isn't an option especially if you've saved a large lump of cash.
  • eskbanker
    eskbanker Posts: 30,401
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    Land2019 wrote: »
    This isn't explained in any of the HTB ISA information provided by the banks, on the web or on MSE's website, very very disappointed, I thought of all people Martin Lewis was the one who looks out for the common person.
    There's no point in getting all worked up about perceived weaknesses in MSE's coverage, which is accurate - your complaint is with Barclays, who, not for the first time, are misinforming you.

    Refer them to their own Ts & Cs and ask where they're getting their invented limit from:
    Transfers-in

    5.1 In accordance with ISA Regulations, you are allowed to transfer current tax year and/or previous tax years’ ISA subscriptions to a Help to Buy: ISA at any time. When you transfer to a Barclays Cash ISA, we call this a ‘transfer-in’.

    5.2 You may transfer-in the funds held in existing ISAs, either with us or another ISA provider.

    5.3 When opening a Cash ISA with the intention of transferring another ISA into it no initial deposit is required.

    5.4 You may transfer-in an existing Help to Buy: ISA to your Help to Buy: ISA with Barclays.
  • Alexland
    Alexland Posts: 9,653
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    Land2019 wrote: »
    so I WASN'T misinformed! My head is about to burst

    You have been further misinformed - point these idiots to their own terms as highlighted by eskbanker above. There is no weakness in the MSE coverage it is correct.

    If they take actions to remove the extra contributions then you may need to raise a formal complaint and HMRC should allow them to correct their mistake as an ISA Manager Error and put the money back in.

    Alex
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