ISA query

boony_2

Sorry if this is a dumb question but I've been unable to find a definitive answer to my problem.

I opened an ISA with ICESAVE this tax year, but I have not contibuted anything to it yet. I'm now having doubts about putting the money into an Icelandic bank and want to open one with a UK bank instead.

Does the fact that I've opened the ISA account mean I'm subscribed? Or do I subscribe when I deposit money into the account?

I already have an existing ISA from previous years (and again I have not contributed to it this year). Am I allowed to contribute to that one this year instead of the new one?

Thanks in advance.

LittleVoice

If you haven't paid into the account you opened this year, then you have not subscribed to it. Subscription = money.

As you haven't subscribed to the account, you can add to the existing one.

Oblivion

LittleVoice wrote: »

As you haven't subscribed to the account, you can add to the existing one.

Yes, but only if he subscribed to it last tax year. If he didn't put anything into it last year it will be deemed to have lapsed, and he will have to contact the provider and fill in a form to reactivate it for this year.

Dave.

SGE1

boony wrote: »

Sorry if this is a dumb question but I've been unable to find a definitive answer to my problem.

I opened an ISA with ICESAVE this tax year, but I have not contibuted anything to it yet. I'm now having doubts about putting the money into an Icelandic bank and want to open one with a UK bank instead.

Does the fact that I've opened the ISA account mean I'm subscribed? Or do I subscribe when I deposit money into the account?

I already have an existing ISA from previous years (and again I have not contributed to it this year). Am I allowed to contribute to that one this year instead of the new one?

Thanks in advance.

I've got an ICESAVE ISA too. Have you read Martin's comments on the Iceland issue? He basically explains that should Icesave fail, Iceland's financial authority, rather than the UK FSA, are liable to make up the first £35k. So technically, it doesn't really matter - you'll still get your money back, but from a different provider.

I would recommend you keep the Icesave ISA, it pays a higher interest rate than anywhere else I've seen!

boony_2

Thanks to all for posting. In the end, I've decided to open a Barclays Tax Haven ISA (I'm already an online-banking customer of Barclays so it was easy to apply). I think this is pretty much the same rate as the ICESAVE for the first year at least.

Does fact that I opened the ICESAVE and am not going to contribute to it this year mean it will not be available to me next year and I'll have to re-apply?

Oblivion

boony wrote: »

Does fact that I opened the ICESAVE and am not going to contribute to it this year mean it will not be available to me next year and I'll have to re-apply?

Yes. A continuous ISA only remains continuous if you subscribed (paid money into it) in the previous tax year. It's just one of the quirks of the system.

Dave.