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Another ISA question.

5 replies

Wingedharpy · 25/04/2019 13:27

Would someone who knows about these things please clarify this for me?
I have opened a small ISA account earlier this month and have made arrangements with the new provider to transfer funds from another ISA account (different provider) into the new account.
So far, so good, but.....
I have another fairly large ISA, with a 3rd provider which is due to mature in a couple of weeks.
I don't want to transfer that money as well into the new account as it will take me over the FCSA protection limit.
So, my question is, can I open another ISA using just the transferred money?
I understand (I think!), that I cannot put more money into another ISA this financial year but transfers in, don't count.
But, how do I transfer in to something which doesn't yet exist?
Can I open a new ISA with £0?

OP posts:
Deccax · 25/04/2019 13:34

Yes you can- any money already in an ISA can be transferred to another one. It’s only new money coming in that will count towards you annual allowance.
Most isa providers will have a process in place to open an account for transfers. Call the provider you want to use and get them to set it up for you.

Sunseed · 25/04/2019 18:41

Does the provider of your maturing ISA have another one into which the matured funds can be rolled over?

Wingedharpy · 25/04/2019 23:57

Apologies, a bit slow responding.
Yes @Sunseed. Current provider of maturing ISA does offer another one which funds could be rolled over to but the interest rate offered is fairly abysmal which is why I wanted to move it from them once it matures.
I may well end up leaving it with them though as it seems to be more trouble than it's worth to move it.
Appreciate both responses.
Thanks.

OP posts:
Sunseed · 26/04/2019 06:31

Transfer process is quite straightforward. If you've identified the new account/provider that you're interested in then when you complete the application form there will be a section about where the money to be invested is coming from. You fill in the details to say that it's a transfer from xxxx including account info. The new provider will then liaise directly with the old provider to transfer the matured funds across as part of the account opening process.

Plexie · 26/04/2019 06:52

It's not more trouble than it's worth, you just need to fill in an extra form when you open the account. It will be a common process for the bank/building society. Presumably the ISA is tens of thousands of pounds so the difference in interest received could be substantial.

Make sure it's a transfer though - don't withdraw the money from the existing ISA as that would count as "new" money.

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