adding to fixed rate isa??

danhull

just transferred my instant access isa to a 3 year fixed stepped rate isa with northern rock today. the lady at the bank said i wont be able to add any money to it at all, i got the impression from her that i wont be able to add to it during the whole 3 years until it matures... is this correct.



she said to open a 30 day cash isa in a few weeks when new tax year is here

Sanzai

Is this the correct ISA?

If so, it seems to clearly state that deposits up to the ISA allowance limit can be made each tax year, until the issue is withdrawn to new customers. Looking further into the T&Cs, it looks like once they stop letting new customers open the Issue 5 (and presumably move on to the next issue) you will have up to 30 days to make any final deposits (again, within the allowance limits for the year) and then won't be allowed to make any further deposits.

As general advice, it really is very important to read all terms and conditions carefully before signing onto anything. If you were left unsure about the account because what you read did not fit with what she said, it would have been best to ask for someone senior to clarify this. Ideally all staff would know about the accounts they have to handle, but in the end you are the one stuck with whatever you have signed up to...

danhull

yes that is the isa, im not too worried about not been able to add to it... i just thought that if you didnt add anything in a tax year then the isa would close. also if i open a 30 day cash isa in a few weeks time when the new tax year starts then i wouldnt be able to add to the fixed rate one anyway

Sanzai

Ah, I see. No, ISAs do not generally close in such a manner. There are fixed term ISAs which mature at a set time (such as the one you have just opened) but it will not close just becuase no further deposits are made.

As for the 30 day cash ISA that you intend to open, there are options from other providers with a higher rate of interest that might be of use to you. Since you do not intend to pay further money into the Fixed Term Stepped Rate ISA you would be allowed to have a cash ISA with another provider in the 2010/11 year.

danhull

i will have a shop around for a good 30 day cash isa, thanks for the advice