I've got myself into an ISA pickle - please help

confused2009_2

Hi,

I've managed to get myself into a pickle whilst trying to do the best for my savings and am now unsure what I should do next.

Basically I opened a Birmingham Midshires ISA at 6.15% back in late Nov as recommended on this site. I opened it with £5 and filled in their ISA transfer form so that my existing Abbey ISA of over £8,000 was transfered in. The account was opened officially on the 5th Dec and was in their cut off time.

However today I called as I hadn't heard whether the £8,000 had been transfered across and it appeared that Abbey only officially closed my account this morning, prior to my call and issued a cheque. At first BM refussed to accept the money saying it was after their cut off point, despite me notifying them at the end of Nov (by filling in their transfer form, which they incidentally sent to Abbey on my behalf). After complaining they agreed to accept my money which should hopefully be with them at some point this week.

However whilst on the phone I wanted to set up a direct debit for £750 to be added each month. They said this was not possible as it was a fixed rate ISA and that means that you can't add more to the account, I presume because it no longer exists?

I'm so confused and stressed out as my Abbey account is now shut and I cannot add to an ISA this tax year despite not using any of this year's ISA allowance.

What is the best way of investing £750 a month from now on, bearing in mind my Abbey ISA no longer exists and that I've opened a BM ISA in Nov which I cannot add to?

I presume that cannot open another ISA as I opened the BM one with £5???

anselld

HMR&C Rules state ".. you will be able to invest in one cash and one stocks and shares ISA each tax year." Hence, IMHO, your only options are to transfer again or wait until April 5th to open another ISA. Bummer :-(
Console yourself with the fact you won't see 6.15% again any time soon!

allthingspink

I've had this problem too and think they are completely in th wrong. If you open an ISA at a fixed rate, it is fixed at that rate for a year, and you can add up to the full £3600 whenever you want. NOTHING in their terms and conditions (I'd urge you to read them again) says you can't add to the figure after the inital deposit and get that rate - the rate should be fixed for the whole year, as long as you opne by the cut-off date, which you did.

nOW i Hvw the paperwork in front of me I am goin to argue it with them strongly tomorrow and ultimately go to the financial ombudsman if they refuse to accept my arguments. Quote their terms and conditions!

Lokolo

It will say in the T&Cs that only one deposit can be made. As every fixed term savings account does. Apart from Halifax who allow upto 4 deposits.

confused2009_2

It has completely shocked me in all honesty. My full intention was to open the account and start paying in as much as possible this year. On receipt of the account confirmation letter, I was surprised that so little information was supplied, compared to other ISAs I've opened in the past and yes, I certainly cannot see anything in their terms and conditions which mentions not being able to pay in anything after the initial deposit. I will also get back on the phone tomorrow and no doubt have a very frustrating phone call.

Good luck with yours!

supersavor

allthingspink wrote: »

I've had this problem too and think they are completely in th wrong. If you open an ISA at a fixed rate, it is fixed at that rate for a year, and you can add up to the full £3600 whenever you want. NOTHING in their terms and conditions (I'd urge you to read them again) says you can't add to the figure after the inital deposit and get that rate - the rate should be fixed for the whole year, as long as you opne by the cut-off date, which you did.

nOW i Hvw the paperwork in front of me I am goin to argue it with them strongly tomorrow and ultimately go to the financial ombudsman if they refuse to accept my arguments. Quote their terms and conditions!

not sure how other banks work but the fixed rate on a halifax isa is the rate when you first put the funds if your only depositing this years allowance once you put your money in you cant add to it even if you put 3grand in instead of the 3600 .
if you are doing an isa transfer in its opened as a variable rate then fixed the day the funds go in you get the rate on the day you applied for it or a higher rate if it happens to go up you will get it at that rate though theres no chance of that happening anytime soon.
loads of customers got a pleasant suprise in the summer months some getting 1.5 % more than the rate they had applied for :T

confused2009_2

It will say in the T&Cs that only one deposit can be made. As every fixed term savings account does. Apart from Halifax who allow upto 4 deposits.

Then that's my misunderstanding as I believed fixed rate referred to the interest rate and not a fixed one off investment. Had I realised this then I would have thought twice.

At least it's in an account with a good interest rate!

Now to find the best way of investing over £500 a month......

anselld

The offending term probably looks something like this ... "This account is a limited issue. When the issue has closed, you won’t be able to add to it in either this or future tax years." Good luck anyway!!

Lokolo

Usually if its fixed for X period, so like a year or something then that is the case.

There are random times when its usually a fixed bonus, like Eggs fixed bonus where you can add money whenever wherever.

But yeh it would be best to re-read the T&Cs, it would usually be near the beginning.

I haven't got the account or anything so I can't say for sure, but the norm is one deposit for fixed accounts.

confused2009_2

okay I believe I may have found the offending term under 'Paying in a cheque' section ''please note for telephone and internet accounts, we do not accept cheques after your initial deposit."

However this is vague as I have a Postal acc and it mentions nothing about money transfered into the account electronically! Misleading springs to mind, but then I'm no expert!!!

anselld

confused2009 wrote: »

okay I believe I may have found the offending term under 'Paying in a cheque' section ''please note for telephone and internet accounts, we do not accept cheques after your initial deposit."

However this is vague as I have a Postal acc and it mentions nothing about money transfered into the account electronically! Misleading springs to mind, but then I'm no expert!!!

Don't think that is the one. That is just to stop people using paper payments on "low cost" telephone and internet accounts. There must be something else. Have you got the specific T&Cs for the account type in question or just generic ones?