Fixed ISA that allows transfers ?

Icesaver

BiggaThanBen wrote: »

Yes, what is the point of tax free savings scheme if there is effectively no tax due to low rates !

p.s. As I remember Halifax does not allow additional deposits into fixed saver accounts .. YBS did, but their product was withdrawn recently ..

This one does
Halifax Guaranteed Saver Reward

For a limited time only, we're offering a great savings rate of 6% AER to anyone with a qualifying current account who opens, and makes the opening deposit into a Halifax Guaranteed Saver Reward before 1 December 2008. See Important Information for details of the qualifying accounts.
Pay £1,000 into your qualifying Halifax or Bank of Scotland current account every month, for the next 12 months following the opening deposit of your Halifax Guaranteed Saver Reward. Available to new and existing current account customers.
If you do not have a qualifying current account, you can still apply for a Halifax Guaranteed Saver.

• Minimum opening balance - £2,500
• Maximum balance - £9,999,999
• Withdrawals - 4 withdrawals within the 12 month reward period
• Unlimited number of deposits into your Halifax Guaranteed Saver Reward. In addition, pay £1,000 into a qualifying current account every month for the next 12 months
• Manage your savings - in branch, by telephone, online 24/7 and by cash card
• One account per person

After 12 months, or if the Halifax Guaranteed Saver Reward balance drops below £2,500, or more than 4 withdrawals are made during the 12 month reward period, Halifax Guaranteed Saver interest rates and conditions will apply.
Fixed Interest Rate (AER)
6.00%
Term12 months


Doubt I'll ever reach the 9 million plus maximum though :rolleyes:

Icesaver

BiggaThanBen wrote: »

Yes, but ..

"I declare that
• I have not subscribed, and will not subscribe, to another Cash ISA in the same year that I subscribe to this Cash ISA."

Which is not true in my case ?

Confused !

Ah I missed that bit... back to the drawing board then.

But isn't it a case that Inland revenue regs only allow you to subscribe one Cash Isa per tax year? Which of course means that all of us with Icesave Isa's are in the same position. We cannot under those rules subscribe to another Cash Isa until next April. Yet the e-mail from FSCS states 'The money you held in your ISA will not lose its tax-free status if you reinvest by 5 April 2009' which really contradicts the Inland revenue's regs?

Icesaver

Interestingly if you try to apply online to Bradford and Bingley eISa you are asked the same questions as NR however your are given the option to transfer a cash isa in. If you say NO to the transfer you get this message

I'm sorry, under Inland Revenue ISA guidelines, you are only able to subscribe to one cash ISA in the current tax year. Whilst you can not subscribe to our eISA account before 6 April 2009, you do have the ability to transfer any cash ISAs held with other providers where the subscription was made before 6 April 2008. If you wish to transfer an ISA where subscriptions were made before 6 April 2008 please click 'Continue' below.
If you have reconsidered, and now wish to transfer your current years cash ISA please click 'Continue' below.


This is contradictory. Firstly it says you can only transfer Isa contributions in that were made before the current tax year, then it goes on to ask if you want to transfer in this tax years contribution.


I think we need Martin's help to clarify the rules!

BiggaThanBen

Icesaver wrote: »

This is contradictory. Firstly it says you can only transfer Isa contributions in that were made before the current tax year, then it goes on to ask if you want to transfer in this tax years contribution.!

According to IR guidelines "subscribe" in this case means "put new money in", so it makes sense.

But in NR's form it is "opened or subscribed" which I think extends the definition to the fact of just having an ISA in the current year. Best to ring them tomorrow.

I thought B&B requred a deposit made by DD to open an ISA ? Have you managed to skip that step online ?

Icesaver

Just found this on another thread which ratifies what you just said

"5.2 Before a manager can open an ISA, he must hold

• a valid application, which he has accepted (paragraphs 5.8 and 5.9), and
• a valid subscription (paragraphs 6.3, 6.6 – 6.12 and 6.19 – 6.34).

5.3 An ISA begins from the later of

• the date on which the ISA manager accepts the application form, and
• the date on which the subscription is made (paragraph 6.9).

The manager should record the date he accepted the application (which may not be before the date of application) in his records. This means that applications may be accepted before the tax year in which subscriptions can be made."

If you have only transferred money you have not subscribed for this year and you are entirely free to subscribe (deposit money in) another ISA of your choice this year.


I didn't actually go any further with the B&B application. Just wanted to see what would happen if I said I'd already subscribed.

Icesaver

As far as NR application form goes, I printed one off in readiness, it only says under the declaration I have not subscribed and will not subscribe to another....in same year as this cash isa. Of course from above definition just transferring in is not subscribing, so though I have subscribed to another ISA I won't actually be subscribing to the NR one.

The online form as you say asks about subscribing or opening, yet when you click yes the next statement is that you can only subscribe to one ISA in a tax year (the word open is not used) so yes that is correct, but if you look at the downloadable application form , it only uses the word subscribed as I mentioned earlier. So I would say it's fine to go ahead. Though all this might be academic by the time we get our ISA certificates!

emphatiC_hanK

It's probably too late now for Cash ISA transfers, until providers re-assess, as the majority of the fixed products will now have been withdrawn.

I managed to get my application off to Britannia for their 6.1% one year fix, with my full allocation for 08/09 plus a transfer of my subscription from 07/08 that was with NS&I's direct ISA, and which is shortly expected to drop to just 3.3% if they knock off the full 1.5 pct points drop.

Britannia have also assured me that provided the application was with them prior to yesterday, as it should be as I sent it 1st Class at the start of the week, then they will accept it (and backdate the interest), even though the product was withdrawn yesterday afternoon.

Sadly the bulk of my previous years' subscriptions is currently with B&B eISA(3), and if they reduce by the full 1.5 pct points, then their rate will be just 3.65%, but I just couldn't risk fixing all of that.

BiggaThanBen

Icesaver wrote: »

The online form as you say asks about subscribing or opening, yet when you click yes the next statement is that you can only subscribe to one ISA in a tax year

Just spoke to one of NR advisers, he told me to answer "No" and then "Deposit by cheque" in case of opening by transfer. Going to apply in branch tomorrow, will update it here then.

BiggaThanBen

BiggaThanBen wrote: »

Going to apply in branch tomorrow, will update it here then.

Too late ..

Icesaver

BiggaThanBen wrote: »

Too late ..

Has it been pulled? Guess it has as it's not on website any longer. Back to square one
:eek: