Post by rl on Jun 3, 2020 9:19:33 GMT
Morning all,
About 6 weeks ago I put in a request with my new ISA provider to transfer my whole ISA from Ratesetter to them. Within my Ratesetter ISA I have outstanding loans in Access, Max, and 5 Year, all of which I RYId some time ago, but which doubtless I'll be waiting months to receive. In the meantime I'm returning what I can to my holding account as repayments dribble in.
Since the start of this tax year I have also manually withdrawn about £9,000 cash from my Ratesetter ISA, so that my remaining ISA allowance for this year is now about £29,000 under the Flexible ISA rules (as long as I pay the £9,000 back in during this tax year). I'm keen not to lose this, but the ISA I'm transferring to is not flexible, so my plan had been to repay the £9,000 into my Ratesetter ISA before the transfer completes, bringing me back to the usual allowance of £20,000 which I can then contribute to in my new ISA as and when.
I've just had the following email from Ratesetter - which may be a warning to anyone else thinking of requesting an ISA transfer:
"Your request to transfer your ISA funds from RateSetter to iweb has been received. We will process your request and email you to confirm when the money has been sent to your new provider and should take no longer than 30 working days.
Whilst this process is ongoing the ability to withdraw and invest with your RateSetter ISA account will be disabled. We will also set your reinvestment settings to the ‘Access’ product unless you had previously set them to holding (for the 1 Year and 5 Year products)."
My supposition is that, when the transfer completes, whatever happens to be in my holding account at that time will be transferred. For my RYI funds which come back later, I'll then have to do a second (and possibly third, and fourth..) transfer request once the cash is back in my holding account.
A couple of questions:
1) Has anyone else gone through this process, and is my assumption above correct?
2) Are there any potential problems with my approach to maintaining my ISA allowance as above? Although Ratesetter's email says I can't *invest* into my ISA while the transfer process is ongoing, I would hope that I can still deposit funds into my holding account to offset what I've withdrawn..
Cheers..
About 6 weeks ago I put in a request with my new ISA provider to transfer my whole ISA from Ratesetter to them. Within my Ratesetter ISA I have outstanding loans in Access, Max, and 5 Year, all of which I RYId some time ago, but which doubtless I'll be waiting months to receive. In the meantime I'm returning what I can to my holding account as repayments dribble in.
Since the start of this tax year I have also manually withdrawn about £9,000 cash from my Ratesetter ISA, so that my remaining ISA allowance for this year is now about £29,000 under the Flexible ISA rules (as long as I pay the £9,000 back in during this tax year). I'm keen not to lose this, but the ISA I'm transferring to is not flexible, so my plan had been to repay the £9,000 into my Ratesetter ISA before the transfer completes, bringing me back to the usual allowance of £20,000 which I can then contribute to in my new ISA as and when.
I've just had the following email from Ratesetter - which may be a warning to anyone else thinking of requesting an ISA transfer:
"Your request to transfer your ISA funds from RateSetter to iweb has been received. We will process your request and email you to confirm when the money has been sent to your new provider and should take no longer than 30 working days.
Whilst this process is ongoing the ability to withdraw and invest with your RateSetter ISA account will be disabled. We will also set your reinvestment settings to the ‘Access’ product unless you had previously set them to holding (for the 1 Year and 5 Year products)."
My supposition is that, when the transfer completes, whatever happens to be in my holding account at that time will be transferred. For my RYI funds which come back later, I'll then have to do a second (and possibly third, and fourth..) transfer request once the cash is back in my holding account.
A couple of questions:
1) Has anyone else gone through this process, and is my assumption above correct?
2) Are there any potential problems with my approach to maintaining my ISA allowance as above? Although Ratesetter's email says I can't *invest* into my ISA while the transfer process is ongoing, I would hope that I can still deposit funds into my holding account to offset what I've withdrawn..
Cheers..