ISA 2009/2009 opened in error

ManicMum

Hello

just wondered if anyone can help. My husband contacted NAtwest to transfer a 2004/2005 ISA to them from another provider. He reiterated to them on the phone he did not want a current year ISA but to transfer the 2004-05 one to a 2004-05 one with them. yes, you guessed it. the paperwork arrived and they have opened a current tax year one. He has tried speaking to them but keeps getting told he must go to a branch to cancel it.
Is this right? We live 30 miles from nearest branch. Willing to do this if we were getting what we wanted, in terms of showing ID etc, but not to rectify their error. Decided not to proceed with transfer now as have lost faith in them.

Secondly, if we cancel it as we don't want a current year ISA with them, will we be able to open another one elsewhere or will that forfeit our right to one for this year? This is our main concern.

Thanks Moneysavers.

Baldur

A transfer does not count as opening a new Cash ISA - the current year will always appear on the account as Cash ISAs can't be backdated - so Natwest have done nothing wrong.

As long as you have not subscribed (paid new money into) to the Natwest ISA, you can open and subscribe to another Cash ISA for the current tax year with a different provider or pay this tax year's allowance into the Natwest one (in addition to the transferred funds), if you choose to keep it, or even your old ISA, if you cancel the transfer - it's up to you.

ManicMum

Thanks for that. That clarifies things. I still think Natwest were wrong to open new account when we didn't ask for that.

Cheers

Baldur

ManicMum wrote: »

I still think Natwest were wrong to open new account when we didn't ask for that.

There's nothing else that they could do

As I explained above - transfers are new accounts but NOT new subscriptions, therefore have no effect upon your annual ISA allowance.

Mikeyorks

ManicMum wrote: »

I still think Natwest were wrong to open new account when we didn't ask for that.

What else could they do? As Baldur correctly intimates .... ISAs are 'yearless' when transferred. You only need worry about a 'current year ISA' ...... and that's any one you've added funds to since 6.4.08.

If it helps .. consider simply that your transferred ISA is precisely the same ISA as it was before. It's simply been parcelled / shipped and is now with Natwest instead of the old provider. The reality, as far as you're concerned, is that only the provider has changed - the ISA remains essentially as it was.