Preparing a New ISA for Icesave ISA reinvest?

bangoman_2

While we wait for our ICEsave ISA money and certificate is there anyway we can grab the last of any of the decent ISA deals, so we have an account waiting for the Icesave isa to go into?

Has anyone come across any ISA that will let you open the account without having to transfer in an opening balance? As I have already used my ISA allowance this year.

I'm happy all of our cash is coming back, and we will retain the taxfree status, but thats not going to be much use when all we'll be able to get is ISA's at 3%.

neil324

Short answer no.

KingL

There are several useful threads on this kind of thing in the ISA subforum http://forums.moneysavingexpert.com/forumdisplay.html?f=18

SGE1

There's something I'm not clear about re reinvesting. I rang up the FSCS, and according to them, if you opened your Icesave ISA during this tax year, you can't re-invest (ie open another one) until 6 April 2009 - yet the certificate isn't valid until then. I then rung up my bank to ask if I could open an ISA with them, explaining my Icesave situation, and they said it was fine.

Does anyone know which is correct? I'd be tempted to say the FSCS, but the guy I spoke to on the phone didn't seem particularly knowledgeable or convinced by his own argument...

LGG_2

i wouldnt say its opening a new ISA u are just transfering your old ISA from icesave to another bank. but its been done a different way. the FSCS said u need to fill out a transfer form so that tells u its not a new one imo

SGE1

LGG wrote: »

i wouldnt say its opening a new ISA u are just transfering your old ISA from icesave to another bank. but its been done a different way. the FSCS said u need to fill out a transfer form so that tells u its not a new one imo

I hope you're right. I guess things will make more sense once we receive the second email from the FSCS.

ywu_2

I opened up an RBS ISA with a zero opening balance for this purpose (in fact, it was to transfer the ISA before Icesave went belly-up, but the transfer didn't happen in time). They said it was okay to do that when I did it.

riad_2

SGE1 wrote: »

I rang up the FSCS, and according to them, if you opened your Icesave ISA during this tax year, you can't re-invest (ie open another one) until 6 April 2009

This is incorrect. Re-investing or "subscribing" (i.e. paying in new money), is not the same as just opening an ISA (e.g. for the purposes of transferring existing funds).

If you have fully subscribed your ISA allowance this year (i.e. paid in 3600 of NEW MONEY to any ISA)... then you cannot subscribe to another ISA this year (i.e. open a new ISA and pay in new money).

Transferring of an existing ISA (containing this year's or previous year's funds) is completely OK.

Therefore, opening a new ISA with nil balance (i.e. with the intention to transfer into) does not constitute "subscribing" to a new ISA. Subscribing is only deemed to have happened when you pay in new money.

Hope this clears it up!

SGE1

riad wrote: »

In addition, opening a new ISA with nil balance (i.e. with the intention to transfer into) does not constitute "subscribing" to a new ISA. Subscribing is only deemed to have happened when you pay in new money.

Interesting. So then it should be ok to open a new ISA ahead of the completion of compensation, but without transferring any money into it?

Baldur

SGE1 wrote: »

Interesting. So then it should be ok to open a new ISA ahead of the completion of compensation, but without transferring any money into it?

Some ISA providers permit this without a subscription, others do not - some will accept transfers, some will not. You'll need to check which applies to your chosen new provider.

SGE1

Baldur wrote: »

Some ISA providers permit this without a subscription, others do not - some will accept transfers, some will not. You'll need to check which applies to your chosen new provider.

Indeed - but what I meant was, theoretically, there is nothing stopping Icesavers from opening up an ISA ahead of the compensation payout.