Hi everyone,
I recently opened a fixed rate 2yr ISA account with my bank provider and have invested the max allowance in it. After much research and thought, I decided that it’s better to invest that money in an ISA stocks and shares account.
I was under the impression that I need to transfer the money and buy stock before 6 April in order to avoid having next year’s allowance impacted, but my bank provider told me that that’s not the case. Even if I transfer the cash and use it to buy stock AFTER 6 April, it will count as “old money” and not impact this year’s allowance (but they did say that I’d need to confirm with Trading212).
I would prefer to do that because, if I transfer before 6 April, I’d lose some of the capital to exist charges (daily interest × 180 days). If I can wait for a couple more months, then I’d be able to exit with no loss (accrued daily interest would cover the exit charges. And although I’m eyeing a few stocks, the entry point is not the best just now, so I don’t think waiting can do much damage.)
Two questions in relation to the above:
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Could someone confirm that my bank provider was correct, and that if I transfer ISA cash AND buy stock after 6 April, that WON’T count toward next year’s allowance?
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If the above is not true, I must start now and processing the application extends after 5 April, will the transfer be considered from the date when I actually made the application?
I’m new to all this, so any help will be appreciated.