First Direct cash ISA?

funkyhitman

Got my e-ISA form in the post today. Took about 9 or 10 days since applying online.

Any

Postcard wrote: »

I applied online over a week ago. I'm also still waiting.

Hi Postcard,
I hope you got your form in the post now, mine arrived on Saturday.
Aneta

knowall2

If you're looking for an online account First Directs e-ISA pays 3.1% AER on amounts above £1. It allows previous ISAs to be transfered in, except from an existing first direct ISA and interestingly also allows money to be withdrawn penalty free so if rates improve within the next 12 months you can transfer your cash elsewhere.

I will also be opening a First Direct ISA but beware of what is written above, copied and pasted directly from the Moneysaver website. The last sentence is very misleading as one CANNOT move the money from the First Direct ISA to another ISA in the next 12 months if better rates are offered elsewhere. Well - not to another ISA anyway. And it would not make sense to move money out of an ISA to a non ISA account (particularly if we are talking about a number of years full savings, as they cannot go back in).
I know that ISAs aren't brilliant at the moment but they are tax free and hopefully they will improve again.
Just wanted to put this on the site as when I read it I wondered if the rules had changed but they haven't - one can only open one cash ISA per financial year. And if I am wrong somebody please tell me. Cheers all...

KTF

You can open as many ISAs as you want put only pay new money in to one of them.

So you could open the e-ISA and pay in the allowance for this year then (if rates improve) open another ISA and transfer the contents of the e-ISA over to that with no penalty.

You could also open the e-ISA, transfer in other non-FD ISAs, pay in this years allowance then transfer the whole lot to another provider if rates increase again with no penalty.

Any

knowall2 wrote: »

If you're looking for an online account First Directs e-ISA pays 3.1% AER on amounts above £1. It allows previous ISAs to be transfered in, except from an existing first direct ISA and interestingly also allows money to be withdrawn penalty free so if rates improve within the next 12 months you can transfer your cash elsewhere.

I will also be opening a First Direct ISA but beware of what is written above, copied and pasted directly from the Moneysaver website. The last sentence is very misleading as one CANNOT move the money from the First Direct ISA to another ISA in the next 12 months if better rates are offered elsewhere. Well - not to another ISA anyway. And it would not make sense to move money out of an ISA to a non ISA account (particularly if we are talking about a number of years full savings, as they cannot go back in).
I know that ISAs aren't brilliant at the moment but they are tax free and hopefully they will improve again.
Just wanted to put this on the site as when I read it I wondered if the rules had changed but they haven't - one can only open one cash ISA per financial year. And if I am wrong somebody please tell me. Cheers all...

It say "TRANSFER"
That is not the same as "OPENING" new ISA. As long as you are transfering without putting any NEW money in, it doesn't count as NEW SUBSCRIPTION.

So you can "transfer" as many times as you want. Even during the same tax year (if the ISA you are transfering into let you transfer to them without having to put in new ££)

favemuppet

knowall2 wrote: »

If you're looking for an online account First Directs e-ISA pays 3.1% AER on amounts above £1. It allows previous ISAs to be transfered in, except from an existing first direct ISA and interestingly also allows money to be withdrawn penalty free so if rates improve within the next 12 months you can transfer your cash elsewhere.

I will also be opening a First Direct ISA but beware of what is written above, copied and pasted directly from the Moneysaver website. The last sentence is very misleading as one CANNOT move the money from the First Direct ISA to another ISA in the next 12 months if better rates are offered elsewhere.

You are clouding the issue here somewhat.

You cannot transfer FROM AN EXISTING FIRST DIRECT ISA into this Cash E-Isa. But once up and running (be it funded by new money or a transfer from elsewhere) you can still transfer to another provider later.


Edit - I think I've just agreed with what KTF has just said! That'll teach me to read the other posts properly!

knowall2

Whoops - better get me coat then! Thanks for the helpful responses - but I did actually ask a First Direct 'teller' and she confirmed that once a cash ISA is opened in one financial year another one cannot be opened that same year...but then again - she would say that! NOT that I am criticising her as FD are an excellent bank and perhaps she misunderstood my question.

..but to get this straight in my mind once and for all - once all my ISA monies are transferred to the FD eCash ISA from previous years AND I have invested the full amount in it for this year - if another account was launched that allowed transfers in from previous years I could move all the funds from FD into it?

Thanks all

KTF

Yes you can.

Baldur

knowall2 wrote: »

..but to get this straight in my mind once and for all - once all my ISA monies are transferred to the FD eCash ISA from previous years AND I have invested the full amount in it for this year - if another account was launched that allowed transfers in from previous years I could move all the funds from FD into it?

Yes you could.

bluejake

I too have applied for a First Direct ISA. They ask for a lot of excessive information that they do not need which seems to be par for the course these days. And a very sneaky opt out of direct marketing from 'select' partners.

After receiving a crap service from other banks in previous years I went with First Direct because I could really could not be bothered wasting time with a Barclays [STRIKE]advisor[/STRIKE] salesperson again - I will go with a bank with a good reputation for customer service instead this time.

So far I have heard nothing. No e-mail to to say they have received my application. I was wondering has my application got through to them? Reading this thread probably. No sign of good customer service yet. Who on earth doesn't send an e-mail to confirm an application has been received online?