ISA set up before certificate

Mikeyorks

Optimist wrote: »

I can confirm the following information, which I have verified with a manger from the Savings department.

Confirms the belief they employ a lot of old sheep in there then? (But it will be useful to sing carols around at Christmas ..... "Away in a manager"!)

Sorry ... I'll go and do something useful now.

Optimist

Mikeyorks wrote: »

Confirms the belief they employ a lot of old sheep in there then? (But it will be useful to sing carols around at Christmas ..... "Away in a manager"!)

Sorry ... I'll go and do something useful now.

haha I never noticed that

Tibbledom

HMRC have issued a guidance note (bulletin 6) in relation to icesave ISAs which is very interesting reading see

http://www.hmrc.gov.uk/ISA/bulletin6-2008.htm

A point of note is that if someone sets up a new ISA now and contributes it will NOT necessarily be invalidated even if someone contributed to a 2008/2009 icesave ISA. The example makes this clear.

This even raises the remote possibility that you can take out a new ISA now, put in £3,600 and then simply put your icesave ISA money into a taxed bank account.

I'm definitely not suggesting anybody does this (it is almost certainly illegal as per HMRC ISA bulletin 5 and definitely would be problematic especially if you have prior years contributions and providers probably wouldn't let you etc etc). But just taking the concession to it's logical conclusion.

square-eyes

AbbieCadabra wrote: »

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).

I phoned Halifax and told them this was a transfer from funds from the defunct Icesave. They said there were a lot of these transfers happeneing. They said I would get the 5% from reciept of funds provided I take the certificate to a nominated branch within 30 days.

Optimist

square-eyes wrote: »

I phoned Halifax and told them this was a transfer from funds from the defunct Icesave. They said there were a lot of these transfers happeneing. They said I would get the 5% from reciept of funds provided I take the certificate to a nominated branch within 30 days.

I was told 60 days and I have it in writing

Thank you for your email dated 1st December 2008.
In response to your query I can confirm the following information, which I have verified with a manager from the Savings department.
You can open a Fixed Rate ISA without funding it, you then have 60 days from the day you open the account in which to fund the account with the investment amount showing on your FSCS Certificate and provide this to us. Whilst the account is not funded the interest rate will be guaranteed for 60 days, in line with our ISA Guarantee.
If you require any further information please do not hesitate to respond to me personally.
Alternatively you can visit your local branch or contact our Savings Team on 08457 26 36 46. Our lines are open Monday to Friday 8am-8pm and Saturday 9am-4pm. One of my colleagues will be happy to help.
I trust that this information helps you.
Regards

Optimist

For what it is worth I phoned the FSCS yesterday to ask about the ISA certificates and was told that they had been a delay in sending them out owing to the numbers of people who had still not received their second email.
The person I spoke to say that they had been told not to give a specific date as to when they plan to send them out but it would be "soon"
I tried to press him but the best he would say was this month !

Stompa

Optimist wrote: »

For what it is worth I phoned the FSCS yesterday to ask about the ISA certificates and was told that they had been a delay in sending them out owing to the numbers of people who had still not received their second email.

How are those two things connected? Or are they not sending out certificates until they've sent second emails to everybody?

Optimist

Stompa wrote: »

How are those two things connected? Or are they not sending out certificates until they've sent second emails to everybody?

That would seem to be the implication

SacMac

FWIW, I called the Halifax this morning and opened a 5% fixed ISA account over the phone. I was told that the rate would be 5%, or whatever rate was set when I funded the account. As the rate will obviously be going down shortly, I then said that if I put a cheque into the account today would the amount be fixed. This they agreed to and they arranged that I could go into my local branch and put the money in from my FSCS compensation, with the ISA certificate to follow when it arrived with me - I told them it would probably be this month but might be longer and they seemed happy with that.

Vectra

Wife received her cert today so it will go into Halifax where we have satisfactorily opened Isa accounts with cash from Fscs 5% fixed .They had given us the 30 day period to do this