TOISA

If you have a current mini-cash ISAS, they may accept your Tessa money. The Halifax will for one.

I'm a tad confused over this area...

Why would a cash mini-ISA in particular "accept" Tessa money (capital only, or capital plus interest?) - surely its just a case of taking the proceeds from one's TESSA and putting it into a cash mini-ISA i.e. you cash in the TESSA, and put up to 3K of it into a mini-cash ISA... in which case what's the distinction ebtween a matured TESSA and cash you have lieing around?

Or are you saying that if you have your 3K already in a cash mini-ISA for this year, you can in fact "top that up" with the TESSA proceeds (again, capital only or plus the TESSA interest) and retain the tax free status of all.... but that would mean you could have up to 12K in a cash mini-ISA! (being the 3K limit plus potentially up to 9K from the TESSA capital... and even higher if the interest was allowable).

As it is I have a 7K stocks and shares maxi-ISA for this year already, so this isn't an option for me.... (and of course my 6 months grace period on the TESSA maturity won;t take me into the next financial year )

Cheers

Ian

If the cash mini-ISA has had £3,000 contributed to it in the current tax year, then you can pay in the Tessa capital. If less than £3,000 you can also pay in as much of the interest as would bring it up to £3,000. The advantage is, of course, that you work your way up to the maximum tier of interest more quickly.

Since you have a maxi-ISA, then your only option is a TOISA, although the Halifax will consider it to be a standard mini-cash ISA Saver with no contribution under the ISA rules.

You can put up to £9k in a Tessa-ISA, you need your maturity cert from the Tessa-ISA. Northern Rock will defiantly take it at their cash Isa rate, and it does not affect your normal mini cash Isa allowance.

Just which rules are Northern Rock prepared to defy?

Thanks for that Terry - that's really helpful.

Next couple of dumb questions:

1) If I have a 3K cash mini-isa from last year, and a 3K cash mini-ISA this year (or a &K stocks come to that) and I find that last year's mini-isa is now paying a lower rate than somebody else now, can I transfer last year's mini-isa to a better rate one now and still retain itsv tax free status?

2) if 1 is OK ie yes a previous year's cash min-isa can be transfeered now with no loss of tax free status, does that still stand if that previosu year's cash isa is in fact 12K (being 3K cash plus 9K Tessa matured capital) - can that be transferred to another mini-cash ISA "now" and still retain the tax free status on all 12K's interest?

cheers

ian

Yes, but you can't just draw the money out of one and then try to pay it into the other, it wouldn't be accepted. It has to be done as a proper transfer. Unfortunately, some providers play silly buggers, some don't allow transfers out, some don't allow transfers in. Most do allow both, but it's as well to check beforehand.

Yes, but it could be that the money in a "normal" ISA that came originally from a Tessa is somehow tagged, and that if you try to transfer the lot to a provider who normally doesn't accept direct transfers from Tessas might also not accept indirect transfers either.

Yes. CAT standard ISAs can be transferred at no charge. IMO Banks and BS vary in their efficiency at organizing the transfer from hopeless (e.g., repeatedly sending the wrong forms) to acceptable (e.g., correctly transferring with a few minor hiccups). Smile and IF seem to have the right procedures in place (e.g., staff understood my request and gave me broadly correct advice!).

I'm not sure. Most (all?) providers keep the TOISA and ISAs separate so I'd expect you to have to transfer each separately.

Thom

Not all. The Halifax definitely considers them as one account.

Thanks to RR for answering previously.

They are not defying any rules, as far as i know. care to elaborate?

Hint (check our spelling in your original post)

Ahh right, got it now, Feckin spell checkers,

Kan u tel i culd spel wel at skol? :)

Many thanks to all the extremely informative answers... or more to the point, thanks to their authors :-)

Ok - final queries... I've punted around trying to find the "best deals" on "cash" and "stocks" bases for my potential TOISA

• cash : the best interest

• stocks : low charges, reasonabnle past performance (accept and understand that that past performance etc...). Trackers?

but am finding it very difficult to actually find more than 1 or 2 TOISA's advertised/debated on the web.

Is it just that "every" ISA can be a TOISA? Is the HSBC capped to 40% of the FTSE improvement offer really the best deal on offer? It seems pretty limiting frankly and I think my attitude-to-risk over the enxt

5 years will risk losing on the market rather than being backed by a guaranteed no loss...

cheers

ian

IIRC you can only roll a TOISA into a Cash ISA. Although If am wrong, I am someone will jump on my head for it (Ducking)

In theory you should also be able to put it into the cash element of a Maxi ISA, though I doubt if many would accept it.

I have certainly never heard of one that would, but most banks will accept it into the cash mini Isa range

Hi Ian, Bristol & West are doing a Mini Cash ISA or TOISA transfer deal with guaranteed capital & interest based on 70% of FTSE growth over 5 years. All under a GEB wraparound (Guaranteed Equity Bond) Not sure if this is what you're after, but hope it helps.

Vic

Smile, Abbey National, Intelligent Finance all definitely do them (and most if not all high street banks).

No.

Thom