Question about my ISA

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
3 replies 570 views
MegalomaniacMegalomaniac Forumite
539 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I have an HSBC ISA which I got... oooh April 2001 when it was the best rate on the market. I have saved in there but until recently I have used up the savings during uni, and moving to a new country and starting a job. However I still have a few quid, but I haven't paid in for a couple of years. I tried once via online banking but got a cheque returned because my account had become I guess what you would call frozen. Still earning interest but I need to fill in a form to reactivate it.

I am now looking at other ISA's and I know there are better deals out there. I know you also can only have one cash isa per year, is this HSBC my one for the rest of the tax year? I also know some isa's allow you to transfer from your current ISA (like Bradford and Bingley), which I don't understand how considering you can only have one in a tax year?

So yeah.. my question is, can I change my ISA from my current HSBC one which is frozen to a brand new and sparkly one which pays 20% more interest each year? I shall be paying in money from now on as I now am settled.

Replies

  • ManAtHomeManAtHome Forumite
    8.5K Posts
    Part of the Furniture Combo Breaker
    ✭✭✭✭
    You can put up to £3k per tax year into a cash ISA. Once it's there you are free to move it to another provider (although there may be a penalty charge). The normal means of transfer is to give your new provider details of the ISA you wish to move and they sort it. Transfers don't affect your current year allowance. If you open a cash ISA then skip a year, it's quite normal for it to be regarded as 'frozen' - they assume you've opened an ISA with another provider, so can't simply extend your current one.

    Bottom line - open an ISA for this tax year with a provider who allows transfers, then get them to transfer the HSBC one in.
  • Dave_P161Dave_P161 Forumite
    180 Posts
    Part of the Furniture Combo Breaker
    If you are looking to transfer funds out of your HSBC ISA then I suggest that you ensure that they have a current copy of your signature, otherwise you will suffer a months delay while they request one from you. I opened a HSBC Isa around the same time as the OP and apparently the Isa department did not take copies of signatures at that time:confused:. They were happy to receive deposits annually and transfers in, but as soon as I wanted to remove funds then the delays started.:mad:
    Dave P :)
  • MegalomaniacMegalomaniac Forumite
    539 Posts
    Dave_P161 wrote:
    If you are looking to transfer funds out of your HSBC ISA then I suggest that you ensure that they have a current copy of your signature, otherwise you will suffer a months delay while they request one from you. I opened a HSBC Isa around the same time as the OP and apparently the Isa department did not take copies of signatures at that time:confused:. They were happy to receive deposits annually and transfers in, but as soon as I wanted to remove funds then the delays started.:mad:

    I had the same problem. Funny thing is I went there last summer to close my ISA... signed for it to happen, and nothing. Evntually got a letter through saying the signature on file didn't match the one I signed for. When I looked at the signature they had on file for me, it was blank! Great ANYONE could have closed my account!

    So I then add my signature, sign to close dfown my account again and now... well, it's still open. Even though I specifically request it (twice) it's still open. Morons... can't close an account, how can I trust them with the £3 I have in there (which has just had £25 of interest added to it :D)
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