Cash ISA Discussion/Question

jimclark1967

pjala wrote:

I have already opened up an ISA for this tax year with FD.
Can I now open up an ISA with Abbey, but not pay anything in?

I would imagine not - An ISA is just a tax free "wrapper" to put around an amount of money - no money no ISA!

The only way to be sure of the existing Abbey rate would be to transfer from First direct this week.

Viz_2

jimclark1967 wrote:

Yes but the money would belong to them if it was in their name!

Would it then be a problem getting the money back in my name ?

pjala

jimclark1967 wrote:

I would imagine not - An ISA is just a tax free "wrapper" to put around an amount of money - no money no ISA!

The only way to be sure of the existing Abbey rate would be to transfer from First direct this week.

Ok, could I transfer £1 out of my First Direct account to open up the Abbey ISA, then keep it that way until October.
I am not adding additional money into a Cash ISA, so all you FSA types out there - is this legal? As to keeping to the spirit of it - all I am doing is attempting to get the best interest rate for my 3000 I am allowed.
Cheers,
P

jimclark1967

pjala wrote:

Ok, could I transfer £1 out of my First Direct account to open up the Abbey ISA, then keep it that way until October.
I am not adding additional money into a Cash ISA, so all you FSA types out there - is this legal? As to keeping to the spirit of it - all I am doing is attempting to get the best interest rate for my 3000 I am allowed.
Cheers,
P

You're not allowed to transfer just part of the current tax year's subscription - it has to be all or nothing.

Do you have any ISA savings from previous tax years you could transfer to Abbey?

jimclark1967

Viz wrote:

Would it then be a problem getting the money back in my name ?

Not if the family member is happy to give it back to you - though you would lose the tax free status.

pjala

I have some I just opened before the deadline as well - so I could transfer some of that?
I will check with Abbey to see if I can make that happen.
Cheers,
P

pjala

Couldn't open it, but there is a Yorkshire BS ISA account of 5.2% or 5.25% 30 day access. Instant access, internet - so I guess better than the Abbey one.
Cheers,
P

robking

I skimmed the T's & C's for the account and everything looked fine - until I called First Direct today to check on how they were going with my ISA transfer request. The following is now clear:

The First Direct maximum subscription limit (ie max amount that can be held in their e-ISA account) is £3000. I CANNOT therefore transfer my previous Nationwide ISA and pay my £3000 ISA allowance into the same First Direct account.

This seems mad but it is true. And the First Direct account is only open until 6 Oct, so there is little point holding it as an account 'on the side' due to the possibility of it taking (according to First Direct) upto 1 month to transfer money between ISA accounts, and the problem of the interest rate dropping to a low of 4.rubbish% in October. There is also the additional problem of holding small sums with more than one provider - it's a hassle.

Martin, should this account not be removed from the best buy guide, or at least a note to show the problem I've found?

Cheers for the site!

rob

Philly

I enquired with First Direct that if I put in £3000 now could I transfer the Isa in October when the rate drops - I was told I would have to keep it in for the year so I feel the higher interest rate is no better than having an Isa in say the Abbey postal on the yearly rate.

MSE_Martin

Hi Rob

The transfer situation is noted in the cash ISA transfer article. It isn't in the main cash ISA article, because that's about opening new cash ISAs where there isn't an issue (and i try not to overcomplicate especially useful for many newbies)