If I withdraw my total ISA funds at 6th April, can I open an ISA with an alternate provider.Is interest lost?

Question

Would I have to inform my present ISA provider that I am taking out next years ISA with an alternate Company?

Answer 1

Essentially you can open one maxi ISA (or two mini's) per year and can only put in a maximium of £7000 (for the maxi) or 2x £3000 for each mini (although that changed in the Budget).

You don't have to keep all your ISA's with the same Provider - you can have multiple different ISA's with multiple Providers (so long as you stick to the '1 new maxi (2 mini) per year' rule).

Most (*all ?) Providers allow you to TRANSFER your accumulated ISA funds to a new Provider at any time. There is no limit on Transfers (only administration charges).

If it's a Cash ISA, and the deal with your current Provider included some sort of Loyalty Bonus, then you will loose that (only).

If it's a Stocks & Shares ISA, then the Shares will be sold by the old provider and re-purchased (if that's what you want) by the new Provider.

Some Providers automatically 'open' a new ISA for you each year (for example, I believe Barclays does this with their Stocks & Shares Maxi-ISA) - so, yes, if you intend to start next years ISA with a new Provider you should inform them now.

Answer 2

I presume you are talking about the Cash element of the ISA s as there is Equity ISA s as well.
Let me explain
YES if you withdraw your ISA funds. The reasons being
1. Your ISA provider may have withdrawal restrictions so if you withdraw there might be a penalty
2.The money withdrawn from ISA s cant be replaced, meaning if you withdrew your ISA funds you can only open up an account with this current years allowance, , not the total sum you have accrued over the years .therefore you will end up with a low balance in your ISAs. Looking at the products in the market I could tell you that higher the balance you have , you will get higher interest too,therefore, not only you will lose the extra percentage but you will loose the tax free benefit for the money you withdrew (provided you had lots of money built up on your ISA). The answer to this is, contact your current provider and tell them you want to TRANSFER your ISA or go to the bank you are transferring to, and they will do the transfer for you , WITHOUT LOSING ANY INTEREST.
Therefore the answer to your next question is you dont have to inform your present provider, as your new provider will look after the transfer.You may have to fill out a few forms. Whatever you do dont withdraw money out of an ISA unless you need the money for an emergency. You will not lose interest as a result of the transferring process.
I hope I answered your question

Answer 3

Once you withdraw money from a ISA, you can put it into another ISA the following financial year, up to £3000. Interest will be lost for the time the funds are outside an ISA.

What you should do is to ask your present provider to TRANSFER it to the new provider. This you can do at any time without any loss of interest, whatever the value of it.

Answer 4

you have not given adequate coaching for absolutely everyone to offer an entire answer. because of fact the recent tax year starts off on April 6th. you could honestly open an I.S.A. with Barclays from that date. of path you may desire to examine web pages and newspapers to be sure which agencies continuously pay reliable fees or gain reliable investment returns, although i'm some distance from an expert I doubt that this could be Barclays. reliable success.

Answer 5

You cannot open two mini ISAs per year! One per tax year and £3000 in cash can be saved into one per tax year.