We have a number of previous years cash ISAs with ING Direct that are now earning very little interest. ING enable savings customers who have previous year ISAs with other companies to transfer them into ING at 3% fixed for two years however they wont extend this offer to customer's like ourselves who remained loyal to ING and opened ING ISAs.
I find this discrimantory and unfair though perhaps not surprising in that the financial services industry's strategy has long been customer aquisition and not retention because losing one customer and gaining one customer is more lucrative than retaing a customer due to the opportunity to charge fees to new customers.
Rant over.
Aside from the rights and wrongs are there any other lenders enabling previous years ISAs to be transferred in? I.e. not affecting this years cash ISA allowance?
Thanks.
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I'm in the process of moving mine to Northern rock - 3% fixed for one year.
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BoS/Halifax 4.25% fixed for 4 years
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BoS/Halifax 4.25% fixed for 4 years
That might look like a very poor deal in 18 months
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>> That might look like a very poor deal in 18 months
>>
With the benefit of hindsight, the UK FTSE 100 index was the place to invest over last two years - growth of over 50%:
shares.telegraph.co.uk/charts/?epic=UKX&period=YEAR2&type=2&compareTo=&submit=Draw
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Thanks for the replies.
What I am not clear on is whether I can transfer an old ISA from one lender to another even though I have used this year's allocation.
I.e. if I transfer, say, a 2009 tax year ISA to another lender will stay as a 2009 ISA or is it a matter of needing this year's allocation intact to be able to do it? ING seems to allow the former though other lenders are less clear some say transfers in allowed though are not clear on whether this year's allocation needs to be intact.
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>> What I am not clear on is whether I can transfer an old ISA from
>> one lender to another even though I have used this year's allocation.
>>
www.moneysavingexpert.com/savings/cash-isa-transfers
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Thanks again.
Northern Rock looks like a good option, only 60 days lost interest upon withdrawal.
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Unless of course they go bust again.
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No, they are covered by the gov's £85,000 security, i.e. if you invest less than £85k with them you are safe.
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The earned interest isn't, just the principal sum invested.
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I think rates are likely to rise, not dramatically, so maybe consider not tying up funds for an extended period.
I have cash Isa's about to mature. Previously they were earning 7.0% so quite a drop in interest rates when I re-invest.
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Interest rates will be going up this year, probably starting in April, probably 3 times in the year and probably at least 2% in total.
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We were talking about this the other day too. I said to my wife that locking in for too long a deal at the moment if it's fixed may not be so wise... interest rates for saving will go up in the near future (I hope).
I think base rate will go up 0.25% fairly soon... then maybe as high as 1.5% in 12 months. That's my view anyway. Whether this is passed onto savers though.
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I am still not clear on this.
If I take the maximum £5340 out of savings to open a 2011-12 ISA can I also take, say, a 2008-09 ISA and transfer it to another lender who allow transfers in to get a better rate or does the latter account for the 2011-12 ISA allowance?
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>>
>> I am still not clear on this.
>>
Cor, you are hard work, Cheddar.
If the simple explanation on monesavingexpert is not clear enough, you can only but try decipher the rules as given on the HMRC web site.
No one can give you a legally binding answer on here, you have to ask an authorised professional for that.
Last edited by: John H on Fri 18 Mar 11 at 12:20
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>> If the simple explanation on monesavingexpert is not clear enough, >>
If you find it simple John then what is your understanding?
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>> If you find it simple John then what is your understanding?
>>
That website gives you the exact answer. Quote it and tell me which bit of it you don't understand and I shall gladly help..
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>> That website gives you the exact answer. Quote it and tell me which bit of
>> it you don't understand and I shall gladly help..
>>
How do you manage to be helpful and obstructive at the same time, it's a strange art ... ;-)
"Yes. Don't think of this as opening a new ISA, you're simply moving your old ISA into a new provider and can do this separately from opening a new account - providing you never put any money in it.
Imagine each ISA year's allowance is labelled 2008/9, 2007/8 etc. Once that year is finished you can't add any extra money to that year's ISA (except interest), yet any ISA that accepts transfers in will happily take everything labelled as an old tax year, and not count it as the current year's allowance."
Not entirely clear to me ...
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What isn't clear to you Cheddar? It says it twice, exactly the same point but stated differently, in the two paragraphs.
Don't think of this as opening a new ISA, you're simply moving your old ISA into a new provider.
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Thanks, Londoner's clarified it M.
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>>
>>
>> Don't think of this as opening a new ISA, you're simply moving your old ISA
>> into a new provider.
>>
I think it's actually doing a bit more then that. When you transfer an ISA from another provider, it adds it into any new ISA you are starting.
For example, I recently opened a new ISA with Northern Rock for the full allowance. I also transferred in an old ISA with Yorkshire. Both have now gone into the same new ISA account, which in consequence appears to be exceeding the annual allowance, but is not.
I can see why Cheddar was confused - it doesn't say in the rules that is what happens, it implies that they go into separate designations, retaining their year of origin labels.
Last edited by: Cliff Pope on Fri 18 Mar 11 at 14:49
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>> I think it's actually doing a bit more then that. When you transfer an ISA
>> from another provider, it adds it into any new ISA you are starting.
>>
>> For example, I recently opened a new ISA with Northern Rock for the full allowance.
>> I also transferred in an old ISA with Yorkshire. Both have now gone into the
>> same new ISA account, which in consequence appears to be exceeding the annual
>>
Transferring old ISA and opening a new one with a single provider - that is covered by scenarios (numbered 2 and 3 by me) below, quoted from the MSE website.
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Cheddar, I'll reply to your specific quoted part of the MSE website at the end of this post.
new cash ISA is with provider A
old ISA is with provider B
transfer is to be made to provider C
First, in reply to your question:
"can I also take, say, a 2008-09 ISA and transfer it to another lender who allow transfers in to get a better rate or does the latter account for the 2011-12 ISA allowance?",
here are quotes - numbered by me - from that website:
1. "How do I open an account just to do a transfer?
When going through the application process for an ISA that accepts transfers in of previous years' money, you'll be asked whether you want to move money in from old ISAs. Tell it you do, .... "
2. "Can I transfer more than one old ISA into a new one?
Consolidating all your old ISAs into one is allowed, .... To do this you just tell the new provider that you want to transfer in from multiple old ISAs. ..."
3. "Can I transfer old ISAs AND pay new money into one account?
Again, yes, provided the account accepts transfers. So, if a cash ISA had a minimum allowed balance of £10,000, this could be made up of £5,000 transferred from previous years' ISAs and £5,000 of new money for the current tax year. ... "
(The last scenario no. 3 does not apply to you as you want to transfer old ISA from provider B to a provider C whereas you are going to use provider A for this year's brand new ISA ).
So for the specific question you asked, scenario 1 applies. You are going to open a maximum £5340 2011-12 ISA with provider A, and you want to transfer a 2008-09 ISA currently with provider B to provider C. If you do that, then as the MSE website says, and this is the bit you quoted from there:
"Yes. Don't think of this as opening a new ISA, you're simply moving your old ISA into a new provider and can do this separately from opening a new account - providing you never put any money in it.
You can't put new money into it because it is an old ISA, and you have opened a separate 2011-12 ISA with provider A. If you put new money in to the transferred account held with provider C, it counts your 2011-12 ISA with provider A is invalid.
To make it doubly clear, MSE website says, and again as you quoted:
Imagine each ISA year's allowance is labelled 2008/9, 2007/8 etc. Once that year is finished you can't add any extra money to that year's ISA (except interest), yet any ISA
that accepts transfers in will happily take everything labelled as an old tax year, and
>> not count it as the current year's allowance."
>>
I still fail to see what it is that you don't understand.
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>>
>> I am still not clear on this.
>>
>> If I take the maximum £5340 out of savings to open a 2011-12 ISA can
>> I also take, say, a 2008-09 ISA and transfer it to another lender who allow
>> transfers in to get a better rate or does the latter account for the 2011-12
>> ISA allowance?
>>
The short answer is: "Double check with the provider"
Example.
You have a 2008-09 Isa with Company ABC.
Company ABC are giving 1% interest on this ISA.
You want to invest with Company DEF, because they are offering 4%.
Provided that they are willing, you can legally take up your full allowance for FY 2011-12 AND transfer your ISA for 2009-09 from Company ABC.
In fact, you can swap previous years ISAs around between fund managers at will, without it affecting your current years allowance.
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Worth looking at Martin Lewis's latest information on ISA rates etc:
www.moneysavingexpert.com/savings/savings-accounts-best-interest
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>> With the benefit of hindsight, the UK FTSE 100 index was the place to invest
>> over last two years - growth of over 50%:
Yup. I paid a large sum into my pension two years ago thank you very much.
If you intend to keep the money invested for 5+ years, then a tracker ISA fund is a good option. Avoid sharp suited financial advisors on hefty commissions. Now is not a bad time, since the market has taken a pounding. The best time to buy is always when the 'experts' say to avoid the market. Hohum.
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>> fund is a good option. Avoid sharp suited financial advisors on hefty commissions. Now is
>> not a bad time, since the market has taken a pounding. The best time to
>> buy is always when the 'experts' say to avoid the market. Hohum.
>>
Agreed, as soon as our resident expert nyx2k posted this
www.car4play.com/forum/post/index.htm?v=e&t=5557&m=123439
I thought it was time to buy the shares he was dumping. You always need a buyer when there is a panicked seller like him.
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Saga 3 year fixed rate ISA
4.00% AER variable
The Saga Fixed Rate ISA, provided by Birmingham Midshires, is a Cash ISA that gives you a fixed rate of interest over a fixed term, so you know exactly what rate of interest your investment will receive.
Benefits of Saga Fixed Rate ISA
* An attractive tax free return for your money with no risk to your capital.
* Invest from £1 up to £5,100 for the 2010/2011 tax year.
* You may transfer some or all of your previous years subscriptions or all of your current tax year subscription into the Fixed Rate ISA, providing the issue remains open.
* Choice of yearly or monthly interest.
It explains it clearly.
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Fine, as long as interest rates don't rise in the next three years, in which case you could lose out.
If we could predict that, we wouldn't be wasting our time on forums (fora?).
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Yes, but to get that rate tax free.......
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Cash ISA issue / deals? - bathtub tom
