Anna Bowes, financial adviser and director of London-based SavingsChampion warned that advisers who fail to familiarise themselves with transfer and top up policies of Isa providers and individual product terms could find their clients left out in the cold.
With only days to go until 1 July, Ms Bowes said two deals from Nationwide - Nationwide Regular Saver Isa (Issue 2) and Nationwide Flexclusive Isa (Issue 7) - will not accept transfers in from existing Isa clients.
One from Hinckley & Rugby Building Society will not allow transfers in from. A spokesman for Hinkley and Rugby said: “Hinckley & Rugby does not, like many other institutions, accept transfers in from other providers. However, existing Hinckley & Rugby Isa customers can transfer to the 120-day Isa.”
Jill Parsons, spokesman for Nationwide, said the society’s Instant Isa saver, with an interest rate of 1.5 per cent and its Fixed Rate Isas of 1/2/3/4/5 years, will accept transfers from stocks and shares or cash Isas.
She said: “The Flexclusive Isa does not accept transfers because the rate of 1.75 per cent is offered exclusively as a reward for Nationwide Flex Account current account holders only, and this enables Nationwide to give more customers the best rate. The Regular Saver account is designed for those making a regular monthly saving, and so does not accept lump sum transfers.”
The SavingsChampion study of existing fixed-term Isa deals also found terms for topping up to the new subscription limit can significantly.
Ms Bowes said some providers are allowing a one-off top up to £15,000 but for only a limited period of time while others are allowing savers to add smaller pots of cash, £5000 for example, on certain narrow windows.
She added: “You do have to keep an eye on it. You cannot simply go for the best rate. There are things advisers need to be careful about.
“You do not want to advise to transfer into a product that does not accept transfers. Then the client has to come back to you.”
From 1 July 2014 all Isas will become New Isas (Nisas). This applies to all existing Isas and new accounts opened after that date.
Savers will be able to invest up to £15,000 for the current tax year, rather than the current £11,880 split between Cash and Stocks & Shares Isa.
On top of this the Nisa will offer the option to invest the whole allowance in cash if preferred, rather than just half the total allowance, which is currently the case.
To date, most high-street banks and building socities have announced their Nisa offerings. Skipton is allowing all fised rate Isa customers to top up to the maximum limit, and all variable Isa customers can top ip to £15,000 from July until the tax year end.
Virgin Money’s Isas are all Nisa ready, and all accept transfers in.
Halifax, part of the Lloyds Banking Group, has issued an Isa Promise, so that, from July, any customers transferring their stocks and shares Isas into cash Isas will get interest from the first day their completed transfer application is received, as long as their funds are free to transfer.
Industry view
Carol Knight, operations director for Tisa, said: “Transfer rules will vary from provider to provider and people should always check first.
“Similarly, consumers or their advisers need to do their research to select the most appropriate deal for their personal circumstances.
“An added – and welcome – consideration with the New ISA is the ability to transfer funds from a Stocks & Shares Isa to a Cash Isa.”
