First Direct ISA - Help Needed!

Pint_Sized_Princess

I subscribed to the FD regular saver ISA in May 2009 and have been putting away £250 per month and now have £3300 in there.

I want to open a new ISA with another Provider next year (2010/11) and have just rang FD to cancel my standing order but have been told that as I only started saving in May 09, I have to subscribe for 12 months which will take me into 2010/11 when my interest is paid therefore I have to stick with them in 2010/11!!!

Is this right!???! The girl I just spoke too wasn't very sure when I challenged this and told me to ring back and speak to the ISA team tomorrow.

Any advice/thoughts?
Thanks in advance

david78

It seems this is a 12 month fixed rate, so she could be right.

Why don't you just bend the rules and take out two ISAs next year, one for £250 and the other for the rest of your allowance. HMRC will let you do this I believe even though its technically against the rules. They may send you a letter but will let you off.

nicko33

terms and conditions appear to be here

http://www2.firstdirect.com/1/2/legals/terms-and-conditions
and then click on the link to the Regular Saver ISA

conditions 5.5 to 5.5.2 make it look like what they said is right

Pint_Sized_Princess

Didnt realise I could do this, thanks!

Well I suppose I could change my last FD payment to the lowest monthly payment which would be £25 and then stop paying in after that. Apparently if I don't pay the last payment they may decrease the rate I receive for 2009/10. Maybe I should read the small print in future!

I also have previous ISA allowances with Natwest which I was thinking of transferring to FD (the 2010/11 ISA allows transfers, whereas the 2009/10 one didn't).

Would this be 'allowable' or should I say possible....whilst also opening a new ISA for 2010/11 with, for instance, A&L?

Many Thanks

Lokolo_2

I can't believe you are suggesting to bend the ISA rules David78!! :eek:

There must be a way to get out of that account, why not just cancel your standing order, they cannt prevent you from doing that. If there is a penalty for getting out early it may still be worth it anyway!

Don't bend the ISA rules though, not a good idea :rotfl::j

nicko33

Pint_Sized_Princess wrote: »

I have to subscribe for 12 months which will take me into 2010/11 when my interest is paid therefore I have to stick with them in 2010/11!!!

After the 12 months are up the account becomes a cash e-ISA and you should be able to transfer it to another provider.

Lokolo_2

Pint_Sized_Princess wrote: »

Would this be 'allowable' or should I say possible....whilst also opening a new ISA for 2010/11 with, for instance, A&L?

Yes you can open several ISA's during the tax year, BUT only contribute NEW money to ONE ISA per tax year (doesn't include transfers, you can move your existing ISA's around as much as you like) :j

Pint_Sized_Princess

Thanks guys, I guess the ideal situation would be to open 2010/11 with A&L and transfer my Natwest to FD to get the 2.75% rate, but if I can't do this, then I guess I have learned from my mistakes for next year!
:T

Pint_Sized_Princess

Oops nobody noticed the mistake - I have £3300 in there so I have actually been putting 300 per mth in - not £250 as I mentioned! Must have more money than sense at the moment....!

Time for bed I think!

david78

There's some information about this loophole here:

http://www.thisismoney.co.uk/savings-and-banking/article.html?in_article_id=490861&in_page_id=7

I'm not suggesting you exceed your allowance.

Pint_Sized_Princess

david78 wrote: »

There's some information about this loophole here:

http://www.thisismoney.co.uk/savings-and-banking/article.html?in_article_id=490861&in_page_id=7

I'm not suggesting you exceed your allowance.

Really useful, thanks!