ISA set up before certificate

hyposmurf

Phoned them up and I'm even more confused than before!I have 30 days to fund this account from the date I applied for it,otherwise I wont be able to have it at the same rate when applying.
I have specified that I transfer money from savings into this new ISA Halifax account when setting it up.They said they would need to maybe set up a variable rate ISA and fund it with my transfered funds from Icesave when they come through.Problem is that I have specified my current account for my transfer of funds from Icesave.They said they would need the funds transfered from Icesave,in order for me to keep my Isa allowance.Although the man at Halifax kept telling I'm not quite sure,sounded really vague on the whole matter.

hyposmurf

Have I got this totally wrong?Should I have set up an ISA before hand without my certificate and have specified this new ISA account number for my FSCS compensation payout?So my ISA would transfer straight to another ISA?

square-eyes

jennifernil wrote: »

Yes, we have opened one with Halifax, fixed rate, you get the rate on the day you apply. Our daughter has also opened one. We were told we had 60 days to fund it, daughter was told 60 days to fund, but only 30 days to submit certificate from FSCS.......we are confused!

I think the dual date confusion is because this is a transfer of an existing ISA. You have set-up the account and have 30 days to prove ISA status with a certificate. You then have 30 days after verification to fund the account. I expect you will only start to acrue interest from the day they recieve funds so I would not leave it too long to get your money in there.
I'm doing the opposite. I have the funds which I am transferring immediatly to get the 5%. I have 30 days to prove it is a valid ISA with the certificate.
Hope this helps.

AbbieCadabra

i think Halifax have got this a bit confuddled (or mebbe it's me?!).

how can the funds only come from Icesave when we've all been paid compensation? that just won't be possible.

as i understand it -
if the provider allows, an ISA is opened that allows transfer in,
this will sit there until the certificates are received from FSCS &
then we will send our certificates & funds (chq/bacs) which will effectively BE THE TRANSFER from Icesave.

bingo - new ISA open/funded & transfer done.

yes?!

AbbieCadabra

Square-Eyes: but if you're funding it now, that's hoping the FSCS send the certificates out within 30 days?

i know that Scottish Widows have told me that it can only be funded when the cert has been received (others have said this too).

Stewster

hyposmurf wrote: »

Phoned them up and I'm even more confused than before!I have 30 days to fund this account from the date I applied for it,otherwise I wont be able to have it at the same rate when applying.
I have specified that I transfer money from savings into this new ISA Halifax account when setting it up.They said they would need to maybe set up a variable rate ISA and fund it with my transfered funds from Icesave when they come through.Problem is that I have specified my current account for my transfer of funds from Icesave.They said they would need the funds transfered from Icesave,in order for me to keep my Isa allowance.Although the man at Halifax kept telling I'm not quite sure,sounded really vague on the whole matter.

Hyposmurf - the Halifax man you spoke to was right to be vague as he is totally wrong on how funds will be transferred from the former Icesave. The FSCS compensation scheme will only transfer funds into your linked account that you had with Icesave and not to any other account (even if you opt for the paper compensation application I believe). Once the money from your former Icesave account (well the compensation actually as you did actually loose the money you had when the bank went bust) arrives back in your linked account you then have to wait for a certificate from the FSCS which will state the amount that you had in an Icesave ISA and authorise your new bank to take this money into an ISA. Just take this certificate along with a cheque (a personal one should be fine from your linked account or even a counter cheque) and pay into your ISA. If the Halifax won't accept any payments in this manner then this needs to be reported to the FSCS as it means they are not complying with the rules of the compensation scheme.

Hope this helps.

Vectra

This years allowance is £3600.I put this in Icesave which went bust.The fscs sent the money back which surely I can start a new Isa with such as Halifax. Icesave bust the Isa so I start a new one I am not defrauding inland revenue and I am willing to pay Tax on any interest received from Icesave which is minimal so whats wrong with that then?

Stewster

Vectra wrote: »

This years allowance is £3600.I put this in Icesave which went bust.The fscs sent the money back which surely I can start a new Isa with such as Halifax. Icesave bust the Isa so I start a new one I am not defrauding inland revenue and I am willing to pay Tax on any interest received from Icesave which is minimal so whats wrong with that then?

The fact that the bank has gone bust doesn't negate the fact that your allowance for 2008/2009 tax year has been used up. If you try and open a new ISA in this tax year, the Inland Revenue will simply instruct your new provider to close the account. The only thing you can do is wait for the certificate from the FSCS and only then can you can pay the money to a new provider - some providers are giving a grace period before you have to present the certificate though.

Vectra

Stewster wrote: »

The fact that the bank has gone bust doesn't negate the fact that your allowance for 2008/2009 tax year has been used up. If you try and open a new ISA in this tax year, the Inland Revenue will simply instruct your new provider to close the account. The only thing you can do is wait for the certificate from the FSCS and only then can you can pay the money to a new provider - some providers are giving a grace period before you have to present the certificate though.

Seems a little on the hard side though!

Stewster

Vectra wrote: »

Seems a little on the hard side though!

Completely agree. Unfortunately though those are the regulations that have been put in place and have been the same for a good few years - the same rules applied to Tessa's when they were in operation.