*URGENT* New MiniCash ISA - 2 from same provider???

Rochdale_Guy

Hi, excuse my rudeness and lateness in posting this question but....

I opened a "Direct ISA" from A & Leicester last month and stuck £3k in it (borrowed off a credit card until September 2006).

That was the end of the last financial year, I understand that.

Thing is, can I open another Direct ISA again with A & Leicester and stick another £3k in this new one ?

Am I allowed to have 2 Direct ISAs with the same "firm" please ?

I have to hurry as I believe A&L are cutting their 0.7% bonus as of Monday night

Can anyone please help/advise me ASAP - thankyou.

Yours ignorantly,
Rochdale Guy.

Edinburghlass_2

Nice to see you posting Rochdale Guy. :j

As the new ISA will be in the new tax year that will be okay

Rochdale_Guy

Thanks very much - I asked for a quick reply and got one !!!!!

I'd better get applying online ASAP, cheers again!

codetown

No, you probably misunderstood things RochdaleGuy!

You can now put another 3k pounds on the SAME A&L account. You don't need to open another (different) account! You could open a second account with a different company, but if you are happy with A&L just add another 3k pounds to the same account and that's all.

Also: the bonus is guaranteed until March 2007 (for customers who already have the ISA), so no worries on it!

Rochdale_Guy

Oh b****r !

I thought you could only have £3k maximum in ONE individual MiniCash ISA per financial year.

Thats why I asked if I could open another MiniCash ISA for this year 2006-07.

Seems I have rushed and totally panicked as I have just applied online for a new MiniCash ISA with A&L for this year 2006-07, and had a confirmation email back acknowledging my application

What do I do now ? Is there a blush smiley....

Rochdale_Guy

I've just been trawling through other threads about this A&L MiniCash ISA and quote:

"However, the small print in the customer Declaration form says 'Please open an Alliance & Leicester Direct Mini Cash ISA for the year 2005/2006 and each subsequent year until further notice'.".

Yikes, as I have already just opened a new one for 2006-07 merely half an hour ago, are they gonna open another for me also? Surely not

Rochdale Guy - in over his head

djohn2002uk

Edinburghlass wrote:

As the new ISA will be in the new tax year that will be okay

I don't think this info is quite right.
You are only allowed 1 mini cash ISA with any provider.

• Up to 5 April 2005, you can only put money into either one Maxi ISA or up to three Mini ISAs – one each for cash, stocks and shares, and life insurance.
  
• After 5 April 2005, you will only be able to put money into either one Maxi ISA or up to two Mini ISAs – one each for cash and stocks and shares, as life insurance is merging with stocks and shares.
  

But in different years, you could choose to save with different managers. There are no limits to the number of different ISAs you can hold over time.

You cannot put money, for example, into both a Maxi ISA and a Mini ISA in the same tax year, or into two Mini cash ISAs.

I think I'm reading it correctly but 2 Mini Cash ISAs seem a no no to me or I'd have had a couple more years ago.

Rochdale_Guy

Thanks for that, but it means I am well am truly up the creek without a paddle.

I did a little deeper digging and found a number to call them re: this Direct ISA on their website, so I rang it then followed all the prompts then got stuck when it asked me to enter my 12 digit customer number.... I don't have one, then I got transferred to their "Security Department" as I have entered an invalid number, then an automated message told me this department is now closed and to hang up ! Great

Then I backtracked some more and read that when you are accepted for this Direct ISA, you will automatically be enrolled onto A&Ls online banking services and I should get 2 separate letters after receiving their "Welcome letter" with my customer number and PIN.

Guess what, I never received these either

I'm probably being investigated by the Inland Revenue and FBI now for attempted money laundering...... !

Guess thats my dinner hour wasted tomorrow on the phone to A&L trying to explain all this big mess, partly my fault but also partly theirs for not sending out my security details. Where the hell have they gone then ?

Yours in a pickle and worried sick,
Rochdale Guy.

(Who never has an easy break in this life !!!!) Boo hoo

david78

The above is all very confusing. Here's the truth

For this year you can:

(i) put your £3000 into your existing A&L ISA if you want, OR

(ii) open a mini cash ISA with another provider and put the £3000 into that.

You might want to do option (ii) if for example, you want to have a fixed rate on your second pot, or if you find a better variable rate than A&Ls.

A&L won't let you open a second mini cash ISA with a different account number.

When it says you are agreeing to open accounts with A&L for subsequent years, all it means is you can pay money into the existing ISA account in subsequent years without the bother of filling in an application. If you are paying monthly by Direct Debit, they will keep taking contributions in the new year and your mini ISA for that year will be with them. But, of course, you can cancel them so no payments are taken after 5th April 2007 if you want.

Please don't worry, you are allowed to have mini cash ISAs with more than one provider (I have 5 accounts with 3 different providers: Nationwide (3 accounts), M&S (1 account), NS&I (1 account)).

The only restrictions are:

(i) You can only pay up to £3000 into one provider's account each year.
(ii) When you open a new account, that becomes your default account for subsequent tax years (unless you change it by opening another account).
(iii) If after paying money into an account one year, you decide to pay it into another of your existing accounts the next year, you will need to fill in an application form (sometimes a short renewal form, sometimes a full application form).

In your case, you didn't need to complete the on-line application for your 2006-2007 ISA, you could have just topped up your existing account. I would imagine A&L will realise you have an account already and will just add your new contribution to that when they process your new form (toss it in the bin 'cos they don't need it)

Mr_Mumble

djohn2002uk wrote:

I think I'm reading it correctly but 2 Mini Cash ISAs seem a no no to me or I'd have had a couple more years ago.

Subscribing to 2 Mini Cash ISAs in the same financial year is a no-no but this doesn't apply to the original poster. From the section you quoted:

But in different years, you could choose to save with different managers. There are no limits to the number of different ISAs you can hold over time.

From this I don't see how you come up with the conclusion you do, or why you're questioning what Edinburghlass wrote.

djohn2002uk

Mr_Mumble wrote:

Subscribing to 2 Mini Cash ISAs in the same financial year is a no-no but this doesn't apply to the original poster. From the section you quoted:

But in different years, you could choose to save with different managers. There are no limits to the number of different ISAs you can hold over time.

From this I don't see how you come up with the conclusion you do, or why you're questioning what Edinburghlass wrote.

Perhaps you'd like to show proof of this as I did here.

After 5 April 2005, you will only be able to put money into either one Maxi ISA or up to two Mini ISAs – one each for cash and stocks and shares, as life insurance is merging with stocks and shares.

Now I am seeing the differing ideas here, but see no point in the exercise. You open say, 4, mini cash ISAs but you can only invest £3000 in any tax year. That can go into one of them and the same every year, what do you do with the others?
You could put £3000 in a different one each year for 4 years but then would take longer to take advantage of better interest rates which kick in as the capital increases. So again I ask, what is the point?