ISA's and tranfering previous sums, possible ?
Discussion
I don't fully understand ISA's. Lets say I have put £5k for the last 3 years into the best rate ISA each year with three different companies, all of them with no fix term.
Now I would have £15k in ISA's, this year I see a great rate for a fixed term of 3 years, Can I transfer the three ISA's ( the £15k ) I have to this account and it still be tax free ? or would only the first £5k of it be tax free ? or does the money have to stay with the original provider for the life of the investment ?
Basically we have some money and have been looking each year at the best rates, but now we have 3 different ISA's and I was wondering if I could transfer the lot to a new bank as a isa in it entirety, do banks tell other banks that it is "ISA" money and there for transferable ?
Now I would have £15k in ISA's, this year I see a great rate for a fixed term of 3 years, Can I transfer the three ISA's ( the £15k ) I have to this account and it still be tax free ? or would only the first £5k of it be tax free ? or does the money have to stay with the original provider for the life of the investment ?
Basically we have some money and have been looking each year at the best rates, but now we have 3 different ISA's and I was wondering if I could transfer the lot to a new bank as a isa in it entirety, do banks tell other banks that it is "ISA" money and there for transferable ?
As above.
As long as you instruct the existing banks holding your three ISAs to transfer the money (including any interest) to the new ISA account all will be fine. Do not take the money out yourself.
You may find that the attractive rate you have seen does not accept transfers in. This seems common practice.
I move my ISA to the best rate each year as 'introductory' offers expire. Banks are used to moving money about and the new provider should give you all the paperwork required but its pretty simple.
Care to share who the attractive account is with?
As long as you instruct the existing banks holding your three ISAs to transfer the money (including any interest) to the new ISA account all will be fine. Do not take the money out yourself.
You may find that the attractive rate you have seen does not accept transfers in. This seems common practice.
I move my ISA to the best rate each year as 'introductory' offers expire. Banks are used to moving money about and the new provider should give you all the paperwork required but its pretty simple.
Care to share who the attractive account is with?
The ISA rules allow you to transfer funds from one ISA to another without losing the tax benefits but the new provider may not allow a transfer in, expecially if they are offering a vey good interest rate. There is a form you have to fill in and it can take up to 3 months for the transfer to happen.
3 year 4.01%
http://www.aldermore.co.uk/savings/cash-isa.aspx#f...
Northern rock are doing 4.5% on a 5 year deal but that felt too long for me with the interest rates as they are.
Figured 4% is better than what I have been getting so it is better that way and on top I will shouldn't need access to it so happy for it to sit there.
Seems I can tranfer in the money from the others so all is good.
Halifax and cheshire are doing 4.4% if you fancy locking it in for 4 years, again just a touch too long for me.
http://www.aldermore.co.uk/savings/cash-isa.aspx#f...
Northern rock are doing 4.5% on a 5 year deal but that felt too long for me with the interest rates as they are.
Figured 4% is better than what I have been getting so it is better that way and on top I will shouldn't need access to it so happy for it to sit there.
Seems I can tranfer in the money from the others so all is good.
Halifax and cheshire are doing 4.4% if you fancy locking it in for 4 years, again just a touch too long for me.
V8mate said:
My missus moved her Cash ISA to HSBC today; got 4.84% AER on a 3.5 year fixed term.
I had a look at HSBC rang them up, can't find that for love nor money, strange as it beats any 5 year deal out there?http://www.hsbc.co.uk/1/2/interest-rates/savings-i...
Also they charge a £100 transfer fee which takes a heathly bite out of the interest earned !
Is it customer only deal ? few banks are doing that but only around the 3.3% for a year and 4.something for 4 years ?
Any deatails ?
V8mate said:
Cheers.It isn't a Tax free ISA so the interest is taxable, which makes a 4% deal actually better for her money when you take tax and transfer fees out.
That and the:
"The FTSE 100 Index may fall (after final averaging) over the fixed term. If it does, you will receive your money back plus 2% gross interest (0.57% AER) on the amount you deposited (less any withdrawals)."
Means it is more risk than a standard one year ISA deal at 3.3%
Edited by Tampon on Wednesday 6th April 18:52
It is an ISA - you can choose whether you want it in an ISA wrapper or not.
You're right, there is a risk that you'll get 2% rather than 18% at the end of the 3.5 year term, but LadyV8 found that a comfortable risk position between staying with more mainstream Cash ISAs paying 3-3.3% and moving over to a Stocks & Shares ISA where there was a chance for her to lose her initial capital.
This way, her capital remains whole, she'll definitely get something and there's a pretty good chance that tht something will reasonably exceed the Cash ISA offerings.
You're right, there is a risk that you'll get 2% rather than 18% at the end of the 3.5 year term, but LadyV8 found that a comfortable risk position between staying with more mainstream Cash ISAs paying 3-3.3% and moving over to a Stocks & Shares ISA where there was a chance for her to lose her initial capital.
This way, her capital remains whole, she'll definitely get something and there's a pretty good chance that tht something will reasonably exceed the Cash ISA offerings.
My advice before taking out the kind of deal HSBC and others are promoting is first to think about how you'd get your money out and what the penalties are, and second they are not guaranteed to the extent promoted. A lot depends on the credit rating of the underlying investment organisation. A good ploy is to ring or ask at a face to face meeting "what is the credit rating of the investment services provider?". If you get a meaningful response that's a good sign, but you're most likely to get a blank stare and be asked what you're talking about...this response from someone supposed to be providing you with financial advice. Do take care!
R.
R.
V8mate said:
It is an ISA - you can choose whether you want it in an ISA wrapper or not.
You're right, there is a risk that you'll get 2% rather than 18% at the end of the 3.5 year term, but LadyV8 found that a comfortable risk position between staying with more mainstream Cash ISAs paying 3-3.3% and moving over to a Stocks & Shares ISA where there was a chance for her to lose her initial capital.
This way, her capital remains whole, she'll definitely get something and there's a pretty good chance that tht something will reasonably exceed the Cash ISA offerings.
Ahh I didn't see the option of it being a ISA, sorry (nothing worse than a PH nay sayer ! ), doesn't look too bad if you fancy a bit of risk on it.You're right, there is a risk that you'll get 2% rather than 18% at the end of the 3.5 year term, but LadyV8 found that a comfortable risk position between staying with more mainstream Cash ISAs paying 3-3.3% and moving over to a Stocks & Shares ISA where there was a chance for her to lose her initial capital.
This way, her capital remains whole, she'll definitely get something and there's a pretty good chance that tht something will reasonably exceed the Cash ISA offerings.
The Leaper said:
My advice before taking out the kind of deal HSBC and others are promoting is first to think about how you'd get your money out and what the penalties are, and second they are not guaranteed to the extent promoted. A lot depends on the credit rating of the underlying investment organisation. A good ploy is to ring or ask at a face to face meeting "what is the credit rating of the investment services provider?". If you get a meaningful response that's a good sign, but you're most likely to get a blank stare and be asked what you're talking about...this response from someone supposed to be providing you with financial advice. Do take care!
R.
Regarding the HSBC Stockmarket Linked Savings Acc, there aren't any penalties as such for withdrawing early, but there may be a market value adjustment. This is due to the market value of the underlying derivatives which make the return possible.R.
Regarding the investment provider, in the case of the 'SLSA' acc the product is provided by HSBC Global Asset Management and the securities probably held with State Street...certainly not some shonky back street provider who might go pop.
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