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Moving an ISA

As interest rates are likely to fall soon, SWMBO "advised" me to move an old cash ISA and TOISA earning 5% to Nationwide's 6.1% fixed for 2 years. But that may well drop before the 30 days it takes to transfer, and I can't open the account now to secure the fixed rate with (say) 1 because I've already used my 3000 allowance for 2007/8 elsewhere. I'm sure HMRC would jump on me if I put 3001 in a cash ISA in one year.

So my question is - would it be better to put 2999 rather than 3000 into cash ISAs at the start of each tax year so you could secure a good fixed-rate ISA later? (Most accounts let you open with 1)

Reply to
LSR
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I think you've got this all wrong. You are only entitled to open one cash ISA in any one tax year, so you can't legally do what you propose.

However, as advised, you can quite legitimately move a previous year's ISA to whatever provider you wish. That does not count against this year's ISA allowance in any way.

Talk to Nationwide now, and they will probably be able to arrange the transfers at the current rate they offer.

Reply to
Norman Wells

Oops - thanks for reminding me. I forgot that as I was focussing on the

3000 limit.

The wheels are in motion ..

The Nationwide T&C's say that when transfering in, the rate will be the one in force when the funds arrive (up to 30 days). Seems a bit unfair for a fixed term investment, which is why I wanted to guarantee the current rate with the minimal opening cash deposit.

Reply to
LSR

I shouldn't think it would take that long. In any case, the BoE kept base rate on hold this month, so that will probably keep interest rates up for a bit.

Don't panic. They'll probably change only by a quarter of a percent anyway.

Reply to
Norman Wells

Well the BoE have kept interest rates as they are. However for OP a fixed rate ISA will normally let you have one credit to it - so you can invest 1 if the T&C allow but not the other 2999. IMO you would have to put in 3000 in one go (or whatever the transfer value of an existing Mini cash ISA is).

Reply to
Eric Jones

You can open more than one. What you cannot do is to subscribe to more than one.

If you want to transfer, go to the new ISA provider and open an ISA "By Transfer". They will then get the funds transferred to the new ISA account.

Reply to
Terry Harper

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