ISA questions

[Hicks12]

Right i setup a cash isa last year (march 11, this current tax year) with santander and well there was the bonus % scheme (first year = + x amount of interest after that its a pitiful .5% or something), looking to change it over as my interest will be paid on the 1st of march as thats when santander pay their interest.

Definitely looking at moving from stantander as their online banking is crap, ive been locked out for the third time now... just to simply check on the account today, so many login details! Ideally looking at moving to Natwest since they have been a solid bank for me over the years and their online banking system has never let me down. They're currently doing a scheme which if you transfer a current isa to them youll get 3.35% interest, pretty high compared to everyone else.

Now the main question i have is that i recall reading that you can only setup 1 isa per tax year, i havent found a simple yes or no to my query yet, mainly this... Can i move from santander to natwest this current tax year (i.e right after 1st of march for interest) or would i have to wait till the next tax year to move to natwest, im not sure if its classed as a new isa account for the year or not really!.

I still have only put 2.5k in so far this year but i should be maxing my tax year allowance in the next few weeks if that makes any difference?.

Any helps appreciated as for some reason this is confusing me

[dave87]

Depends on the ISA account - only some allow transfers in from other ISAs

Regardless, I believe you'd need to wait until the new financial year to open a new ISA (though I stand to be corrected) as you can only subscribe to one (cash ISA) a year.

I'm with Barclays & their Golden Cash ISA seemed pretty good, and the rate was 3.something for the first year (1% of which is a bonus) so if I leave it there I should still get 2% or thereabouts. I maxed my ISA allowance (at the start of the financial year) and about three weeks before that, maxed the previous years ISA entitlement I hadn't used. I can't pay anything more in until the new financial year.

[Hicks12]

Yeah i noticed the transfer in, thankfully the natwest isa allows this and they give an increase on the interest for doing so, normally 2.6% for new isa and a transfer would put that to 3.35%, still debating on how many years to put it away as the economy could change any time but 3.35% is 0.05% than what santander were doing for the bonus year so still an improvement.

Thats the confusing factor really, i would see it as having to wait till the next tax year but you could also see it as simply moving providers thus still only having one isa account that year. Hopefully someone can shed some light on this . I think ill give Natwest a ring or pop in sometime next week as ive noticed the offer is from 1st of feb to the 29th... i would hope i could open the account and then allow x amount of days to wait for santander to payout then transfer it, providing of course im allowed to transfer this tax year.

Another question which i think i would need to ask santander but regardless ill ask, would it be wise to shove in the rest of my allowance before santander pay out interest in the coming weeks or would it make no difference, not sure how they work out what to pay you i.e does the money have to be in for x amount of days.

[jim]

I was told very specifically by my bank that you're only permitted to open one cash ISA per year, but they may well be wrong.

[dave87]

If you put more money into the Santander now, before the end of the tax year, then that is only counted for this years total.

Then, first day of the new tax year (for example) open the Natwest one and transfer in the amount from the Santander account. I believe you'd still have your full yearly ISA allowance remaining (as transfers don't, as far as I am aware, count for that).

I don't believe you'd be able to transfer this year if you've paid into the ISA this financial year....though that point I am unsure on.

Ring the bank, or if you are considering switching all your accounts to them - make an appointment with their Personal Bankers in branch. Barclays' Personal Bankers are pretty good in my experience, though your mileage may vary on day/advisor/branch/location and most obviously, which bank you are talking to

[jim]

If you put more money into the Santander now, before the end of the tax year, then that is only counted for this years total.

Then, first day of the new tax year (for example) open the Natwest one and transfer in the amount from the Santander account. I believe you'd still have your full yearly ISA allowance remaining (as transfers don't, as far as I am aware, count for that).

Yeah, that's definitely true. I'm in the same boat as you on the rest of it though, feel as though you're right but don't actually know.

[Hicks12]

Yeah i should have been clearer on that, it was more the fact would i gain an interest benefit i.e would i get 3.3% off the new 2.8k i put in now ontop of the original 2.5k?. I will put it in now anyways as yeah it wont count next year so it will be near from the next tax year.

Definitely will get a chat with natwest about it as they should certainly be able to give me advice for this. Its only the one account from santander that i want to transfer, dont have any other ISAs as im only a student so havent needed to, thought best to save early... stops getting taxed as much later on .

[billythewiz]

Straight from the horse's mouth ... "You can transfer your ISA to another ISA manager whenever you want.". "If you want to transfer the money you have put into your ISA in the current tax year, you must transfer all of it."
http://http://www.hmrc.gov.uk/isa/faqs.htm#6

[cptwhite_uk]

Right i setup a cash isa last year (march 11, this current tax year)

Wrong. You set it up LAST tax year. FYI The tax year begins on the 6th of April each year, so the current year started 6th April 2011, and ends 5th April 2012.

So you opened it last year, and are eligable to open a new account anytime you like until 5th April, and then you can open one after 6th April as well (the following tax year)

Transferring cash from existing ISAs (like your Santander account) to a new ISA is possible, but not with every account type (you need to check with the new ISA provider that they allow transfers in). This will allow you to transfer the full amount + your yearly allowance (can't remember how much this is, think it's £5100). Obviously if you've been putting money in the Santander since 6th April 2011 that counts as this years yearly allowance.

Typically I tend to look for the best ISA deal come early March, and re-new my ISA to get the best deal in that month. The idea being that if there's a sudden change in the economy circumstances (bank of england increases interest rates for example....lol...as if) but come 6th April you can transfer again to take advantage of the current improvement in circumstances.

Also it's often worth going into the bank to speak to an actual person, I was about to transfer my ISA away from LloydsTSB as my initial intraductory interest rate had ended (reluctantly as they're my main current account and card provider, and one login screen is very handy). Anyway right there she clicked some buttons and reset it to give me 2.5%, now that wasn't market leading but the 0.5% difference amounted to less than £100 given my low saving at the moment due to house extensions and wedding, and so it was more conveinient to stay with them, so that's always worth consideration - the hassle factor

[Domestic_Ginger]

There are so many caveats to every Santander account that I would just sit this one out. Wait till next year and open an account with a decent bank or BS and then transfer the money over.

They're gonna shaft you either way. Either by sending you a cheque second class, screwing up on the phone in service, finding a clause to not pay any interest or their staff screwing up in branch. These people are morons; lodge a complaint with them and wait three months for them to send you a letter to say your complaint has not been resolved.

[jim]

There are so many caveats to every Santander account that I would just sit this one out. Wait till next year and open an account with a decent bank or BS and then transfer the money over.

They're gonna shaft you either way. Either by sending you a cheque second class, screwing up on the phone in service, finding a clause to not pay any interest or their staff screwing up in branch. These people are morons; lodge a complaint with them and wait three months for them to send you a letter to say your complaint has not been resolved.

Or lodge a complaint with them and wait a month for them to send you a letter with a large cheque

[Hicks12]

Wrong. You set it up LAST tax year. FYI The tax year begins on the 6th of April each year, so the current year started 6th April 2011, and ends 5th April 2012.

So you opened it last year, and are eligable to open a new account anytime you like until 5th April, and then you can open one after 6th April as well (the following tax year)

Transferring cash from existing ISAs (like your Santander account) to a new ISA is possible, but not with every account type (you need to check with the new ISA provider that they allow transfers in). This will allow you to transfer the full amount + your yearly allowance (can't remember how much this is, think it's £5100). Obviously if you've been putting money in the Santander since 6th April 2011 that counts as this years yearly allowance.

Typically I tend to look for the best ISA deal come early March, and re-new my ISA to get the best deal in that month. The idea being that if there's a sudden change in the economy circumstances (bank of england increases interest rates for example....lol...as if) but come 6th April you can transfer again to take advantage of the current improvement in circumstances.

Also it's often worth going into the bank to speak to an actual person, I was about to transfer my ISA away from LloydsTSB as my initial intraductory interest rate had ended (reluctantly as they're my main current account and card provider, and one login screen is very handy). Anyway right there she clicked some buttons and reset it to give me 2.5%, now that wasn't market leading but the 0.5% difference amounted to less than £100 given my low saving at the moment due to house extensions and wedding, and so it was more conveinient to stay with them, so that's always worth consideration - the hassle factor

Sorry i know the tax year begins in april, i believe it may have been the fact that santander screwed me, i think i was right that march 11 was when i opened it and setup a transfer of 2.5k from my natwest account(online transfer i.e instant/next day), however when my santander statement came through it said i had already used 2.5k of my allowance (i.e THIS tax year april 2011 - current), not sure how this happened and i should actually look into this, dont think it was an issue on my end though as the money was in the account asap. Currently locked out still and dont have the time to phone them to sort this crap out but will do it in a day or two.

[Steve]

Make sure you set the DIP switches correctly and have the driver floppy to hand.

Yeah... I'm jetlagged.

This reminds me though, I have a 16 month old ISA I really need to move again to get a good rate on.

I'll stop ruining your thread now...