M&S Money 4% ISA

sheslookinhot

10_66 wrote: »

I recently rang M&S to ask what the furthest future date on the transfer form was likely to be permitted and the person I was talking to said she thought it unlikely that they'd go beyond a couple of weeks' after the withdrawal of the account. I was hoping it would have extended beyond that because I'm in the process of transferring several years' of different ISAs into one variable account (to try to cut down on the number of transfers next year), so that I could then transfer that into the M&S one. Problem is that the last 2 to be transferred aren't due until 6th & 7th April and there's no guarantee when they'll complete, other than it "should" be within 30 days. It was at that point that the Customer Service Assistant said she thought it unlikely they'd permit a 30 day delay.

I told the rep at M&S my provider needed 30 days notice, and she said that would be fine. Remember that they themselves can take 30 days.

A._Badger

10_66 wrote: »

I recently rang M&S to ask what the furthest future date on the transfer form was likely to be permitted and the person I was talking to said she thought it unlikely that they'd go beyond a couple of weeks' after the withdrawal of the account. I was hoping it would have extended beyond that because I'm in the process of transferring several years' of different ISAs into one variable account (to try to cut down on the number of transfers next year), so that I could then transfer that into the M&S one. Problem is that the last 2 to be transferred aren't due until 6th & 7th April and there's no guarantee when they'll complete, other than it "should" be within 30 days. It was at that point that the Customer Service Assistant said she thought it unlikely they'd permit a 30 day delay.

That's puzzling. I can't transfer mine out of Lloyds until after mid-May and was told that would be fine - 'just write the date on the form'.

The application was posted earlier this week so I assume if the information I was given was incorrect they will let me know. I'll report it here, if they do.

J45

dov wrote: »

I'm considering transferring my Santander ISA to the M&S 3 year ISA bond. I would like to get in my 2010/11 ISA funds into this bond and the way I'm thinking of doing this is to either wait till the last moment to send the transfer application form - its got to be with them by April 3rd - and then transfer funds to Santander before they transfer the funds to M&S. The alternative is to pretend there is a maturity date and request they don't transfer till say 10 April.

I am considering doing the same thing with my first direct ISA.

So in theory can i tell them to initiate the transfer on say the 10th April which gives me enough time to put in my 2010/2011 allowance into my first direct isa and then that will be transferred to the M&S isa on the 10th April.

Is there any reason why that wont work?

funkyhitman

J45 wrote: »

I am considering doing the same thing with my first direct ISA.

So in theory can i tell them to initiate the transfer on say the 10th April which gives me enough time to put in my 2010/2011 allowance into my first direct isa and then that will be transferred to the M&S isa on the 10th April.

Is there any reason why that wont work?

I don't understand why you would want/need to do this? I have a First Direct Fixed Rate ISA at 3.1%. Unless you have something different you are free to transfer out at any time without penalty. So why not just transfer to M&S now and pay in the 2010/11 allowance after 5th April to M&S. This is what I am doing.

10_66

funkyhitman wrote: »

...So why not just transfer to M&S now and pay in the 2010/11 allowance after 5th April to M&S. This is what I am doing.

Because once opened, you can't add to it, which would means that would involve having two M&S 3 year fixed rated accounts (not that this version would still be available on 6 April anyway). Having two M&S fixed rate ISAs would mean 2 x £100 penalty if early withdrawal was required. The way that dov and J45 (and others) are thinking of doing it means that all funds would be in one M&S account only.

funkyhitman

10_66 wrote: »

Because once opened, you can't add to it, which would means that would involve having two M&S 3 year fixed rated accounts (not that this version would still be available on 6 April anyway). Having two M&S fixed rate ISAs would mean 2 x £100 penalty if early withdrawal was required. The way that dov and J45 (and others) are thinking of doing it means that all funds would be in one M&S account only.

Surely this cannot be right? You are given an allowance each year so I would expect to be able to pay into this ISA once each year. Is that not how it works?

At the very least I would expect to be able to deposit NEW money into the account after the transfer of my existing ISA is complete because surely a transfer is not the same as an initial deposit? After the transfer is complete I would expect M&S to write to me notifying me that my account is now open and detailing how to set up my one off deposit up to £5,100 for the new tax year.

I have just read through the T&C's and came across this:

4.3. You can deposit money in one or more of the Fixed Rate Bonds, the periods of
which are outlined in 2.1 above, and make further deposits, subject to the
maximum deposit given in clause 6.1 below.

That, to me, says you can deposit lump sums as often as you like up to the maximum (£1,000,000).

As far as I can see nowhere does it mention you can only pay once into this account.

dov

I read that point out from the T&C while on the phone to one of their advisers but they insisted that every instance of adding new money would give you a new bond account and you can't add money into the same bond account. This seems consistent with what others have experienced.

10_66

funkyhitman wrote: »

Surely this cannot be right? You are given an allowance each year so I would expect to be able to pay into this ISA once each year. Is that not how it works?

At the very least I would expect to be able to deposit NEW money into the account after the transfer of my existing ISA is complete because surely a transfer is not the same as an initial deposit? After the transfer is complete I would expect M&S to write to me notifying me that my account is now open and detailing how to set up my one off deposit up to £5,100 for the new tax year.

Most fixed rate accounts don't allow additions to it once opened, and if even if they do, usually only up to when the account is withdrawn (which in this case would be 5 April, as M&S are telling us that a new version will be available from 6 April). If you check out earlier in this thread, this matter has been discussed and confirmed that, once opened you can't add to it. If more than one account is opened, you are given the same "customer number", but they would be individual accounts within that customer number.

Stompa

dov wrote: »

I read that point out from the T&C while on the phone to one of their advisers but they insisted that every instance of adding new money would give you a new bond account and you can't add money into the same bond account. This seems consistent with what others have experienced.

Yes, I was told the same when I queried it with them.

funkyhitman

Thanks for the clarification all. Disappointed with M&S for not making this clear in their T&C.

I guess i'll have to see if I can deposit next years allowance into First Direct 6th April before they transfer it. I put transfer out immediately on the transfer form which won't reach M&S til Monday/Tuesday so I'd be surprised if they send it off to FD and they manage to action the transfer before 6th April, therefore I should be ok to deposit new money into FD.

If the worst happened and the transfer was actioned before I paid new money in then I would end up with new money left in the FD ISA. Could I request a second transfer? I'm wondering if this would cause any problem considering I ticked to transfer 'full amount' on transfer form.

What happens to ISA's when you transfer full amount? Do they automatically close them? If this is the case then would my new deposit be denied and returned to my current account?

Sorry for all the questions.