Paying more than 3kpa into a mini cash ISA

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
3 replies 692 views
SillychuckieSillychuckie Forumite
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edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I know you aren't supposed to... but has anyone ever actually tried?

I was transferring money today from one A&L account to another and VERY NEARLY put more money into my ISA (selected the wrong one on the 'TO PAY' list by mistake). I have already put in 3k, so it was lucky I noticed it on the confirmation screen and clicked cancel... but it did make me wonder.

Would A&L have denied it on a screen after that? Would they have just made the transfer?
Having done so, would I have been denied my interest?
OR, would they pay me the interest, and would I simply just be breaking the law? (cos I could probably live with that... j/k) :)

I'm curious anyway and am wondering if anyone has ever tried. I'm too much of a wuss to try and transfer another 1p in in case I lose interest (breaking the terms of the account), or the government come knocking. :rotfl:

Still, A&L make it all too easy to be tempted to transfer more money in, especially to newbie ISA holders who might not be aware of what exactly is allowed and what isn't. After it reaches 3k, they should remove it from the 'payee' list. I'm really curious what would happen... :confused:

Any other guinea pig volunteers out there brave enough?

Replies

  • dunstonhdunstonh Forumite
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    Yes, people have tried and they have been found out. Its all logged under the NI number and can take between 6-18 months to get the second one made void. On existing ones, most providers have in-built warnings to prevent/reject payments over the limit.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Yes, people have tried and they have been found out.
    inland revenue have dedicated team who just investigate isas & will find out. every year they run a computer check against national insurance number which flags up amounts of 3k and looks for more than one isa. if they find anything they send you a form which you must complete.
    Any other guinea pig volunteers out there brave enough?
    People would be silly to do it- the hassle is not worth the risk. If people are lucky enough to be able to save more than their isa allowance (i wish!) they can always pay it into one of the regular savings account- some of these even allowing for tax on savings pay more interest than isa.
  • I almost did once by accident. I was paying in a cheque in a building society branch and they told me it would take me above my allowance by £25 and would not accept it.
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