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Skipton Fixed Rate Cash ISA 6% to 31.12.08

I have today received a letter from the Skipton..."you may be planning to make further investments after 5th April 2009 to maximise your tax-free opportunities. However, as this fixed rate ISA and the account was closed to new investments on 29th July 2008. This means that you will be unable to invest in this ISA in the new tax year whilst you are receiving the fixed rate."

What do they mean? I opened the account on Saturday 12th July 2008, but there were delays with the transfer from the Halifax due to the volume of these new accounts being opened by the Skipton. I have a letter from the Skipton stating that the opening sum was credited to my account on 28th July 2008, and 7 further deposits have been made into the account.

Can Skipton just stop me investing in the Fixed Rate ISA? Why have they accepted the subsequent deposits if the account was closed to new investment? It was my understanding from discussing the account with the Skipton in Southport that I could invest in this ISA at the fixed rate of 6% to 31st December 2008. I would welcome any comments.
Joe S

Comments

  • Baldur
    Baldur Posts: 6,565 Forumite
    You need to check the Terms & Conditions of the FRISA, you have been quite lucky that you have been able to make so many further additions after your initial deposit, as many FRISAs will only accept a single deposit.

    As the ISA was opened in the 2008/9 tax year, they are almost certainly within their rights to refuse to accept further subscriptions after 5th April, when that tax year ends and would probably have included such a condition in the Terms & Conditions.
  • I think everyone would like to contribute to there Skipton ISA at 6%!! but unfortunately in the terms and conditions it will state you will only be able to invest while the fixed rate ISA remains open .I believe it closed on the 28th July
    This is common practice on fixed rate accounts
    Sorry to give you the bad news
  • apt
    apt Posts: 3,204 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I also got the letter. You cannot add to this account after 5 April 2009 and you cannot transfer any ISAs from other providers. However, if you have not yet used your £3,600 ISA allowance for 2008-9 for this account you are allowed to add money up to the £3,600 limit and enjoy the interest rate of over 6% until the end of the fixed term.
  • Milarky
    Milarky Posts: 6,356 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    apt wrote: »
    However, if you have not yet used your £3,600 ISA allowance for 2008-9 for this account you are allowed to add money up to the £3,600 limit and enjoy the interest rate of over 6% until the end of the fixed term.
    Where the deposit made have all been old years' transfers-in presumably? Do you know for a fact that this Skipton ISA's terms permit a late subscription of the type you describe - as the other comments seem to pretty well rule this out....
    .....under construction.... COVID is a [discontinued] scam
  • apt
    apt Posts: 3,204 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    That's what the letter said, although I don't have it anymore as I'd already subscribed £3,600 this year.
  • My husband phoned Skipton several weeks ago and was informed by the lady on the phone that we could invest a further £3600 next year. We have now also received the above letter. I take it we have no arguement with Skipton to allow us this investment? ( we had started moving money from other accounts to get this sum and may now miss out on our previous better rates)
  • I've just phoned Skipton to find out why my D. Debit of £250 p.m has been returned after the new tax year in April. They said that this ISA was 'limited' and so all payments would stop at the end of the tax year, and as it was set in July 08 (even though it clearly runs until Dec 09), this would be limited at the end of 08/09 tax year.

    I asked the Skipton C. Services rep' to show me where, on the terms & Conditions, it states this and she said it was in the 'product details' where it mentions, 'this ISA is for a limited period - so act quickly'. However in the 3rd bullet point it states that: 'A Max' investment of £3,600 in any tax year.'

    Nowhere in the Terms and Conditions does it state this will be limited to the 08 tax year and it certainly suggests that investments up to £3,600 can be made until the fixed rate ends on 14th Dec 09.

    Regardless of whether this is an excellent rate or not - Skipton should have made the investment terms clear and I have put in a complaint for this to be investigated.

    I suggest that anyone who was fortunate enough to have one of these 6.5% Skipton Fixed to Dec 09 ISA, checks/complains also, because having spoken to the FSA they certainly think that Skipton have been unclear and potential misleading.
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