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I have 2 ISA'a which I think are at low rates compared to others. I think you did an article on how to move rate without loosing the allowance tax incentive from the year you placed the ISA. If I have 2 can I change both now ?
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129I'm not sure exactly which article you're referring to but have a look through our ISAs archive, you may be able to find it there.
As regards the rules around ISAs: you are free to switch ISA providers at any time - although you may face a penalty from the provider if, for example you took out a fixed rate bond where you promised not to withdraw money from your ISA for a set period.
But you can certainly legally switch, and more than one at once is also fine.
What you can't do is deposit £1,000 with one ISA provider, and £1,000 with another ISA provider, in the same tax year. You must deposit the full £2,000 in the same ISA with a single provider. Whichever one you choose is up to you.
The key thing is, never move ISA money around by withdrwawing it directly from the provider. Go to your new provider, get a transfer form, adn then get the ISA providers to conduct the transfer. Otherwise you will lose your tax-free savings status.
Hope that makes sense. ISAs are complicated!
Posted on 08 October 2009 |
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212I think you meant that you can't have two cash or two share ISA providers at the same time and deposit into both at the same time.
You can only have one provider of each type at any one time ... you can switch providers any time you like (ignoring penalties) ... you can only deposit up to the relevant limit in any one year regardless of how many providers you had controlling that ISA for the year.
Also if you withdraw funds in the year your limit doesn't change ... it's deposits that count ... not withdrawals ... so if you do incur a penalty try to pay it out of other funds if that's allowed ... as you won't be able to make it up this year.
This withdrawal thing is only a problem if you want to take full advantage of your limit ... if you don't you can afford to lose some of it.
Posted on 08 October 2009 | Love 0 loves
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804There appears to be some muddled thinking about the number of ISA providers that you can have.
Each year you can have one provider for a Cash ISA and one provider for a Stocks & Shares ISA, in respect of new money. Previous years' money can be invested anywhere. You can have as many providers as you like, so long as you only have one of each type per tax year.
For investments to remain as ISAa, you must ask the new provider to make the transfer on your behalf. The money must go from the original provider direct to your new provider. It must never go through your own accounts.
Cash ISAs can be transferred to Stocks & Shares ISAs, but the reverse is not permitted.
Always check before making a transfer that the old provider will not make a charge for the transfer.
The amount of the transfer of old ISAs does not count against your current year's allowance.
Mike
Posted on 08 October 2009 | Love 0 loves
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212So for a cash ISA you can only switch providers once per year ?
Posted on 09 October 2009 | Love 0 loves
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804SB
I can't see that retriction in the rules. You can only have one at a time per tax year of contribution but whether you can switch more often, you had better check the HMRC ISA helpline on 0845 604 1701 (Monday -Thursday 8.30-5.00, Friday 8.30-4.30).
Personally, I would be looking for the best fixed rates and consolidating past years, so would be investing for at least a year at a time. I have better things to do with my life than switching investments every few months.
Mike
Posted on 09 October 2009 | Love 0 loves
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212agreed ... but there seemed to be a suggestion that it wasn't possible to switch provider more than once a year ... I've never had that impression though ... so if you make a mistake then you can switch again ... you're not stuck for the year ... unless you fixed it and possibly might incur a penalty
Posted on 09 October 2009 | Love 0 loves
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410As Donna says, "The key thing is, never move ISA money around by withdrwawing it directly from the provider. Go to your new provider, get a transfer form, adn then get the ISA providers to conduct the transfer. Otherwise you will lose your tax-free savings status."
But switching ISAs is a PITA. No-one should think of doing it more than once in a year!
In general I recommend moving all your 'old' cash ISAs to a single place. That way it you want to switch to a better one next year, you only have to make one move, not several.
(The old way of having ISAs all over the place in case you strike lucky and carpetbag (when a Building sociaty floats on the stock market) are gone for good. Anyone holding loads of different ISAs for this reason should give up and unify them for simplicity.)
manzanilla
Posted on 11 October 2009 | Love 0 loves
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1 129Yes, you can do that.
Or, you can transfer the entire amount you've got saved up to a new ISA provider, and then add to that ISA (as long as the ISA provider allows you to do this).
If I were you, I'd give the provider of the new ISA you want to open a call and just check what its own rules are. Some providers do not allows transfers in.
Posted on 03 November 2009 | Love 0 loves
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