Adding this years ISA allowance to an existing First Direct ISA

welshio

Hi,

I took out the first direct e-cash ISA back in November 2009 and transferred my existing ISA balances into it at a promo rate of 3%. Now the new tax year has started I would like to use this years allowance and to just add it to the existing ISA fund. I have spoken to first direct and they have confirmed that my 3% rate is valid until Nov 2010 but I'm wondering whether if I stick another £5100 into it this year will that benefit from the same rate or the lower current rate.

Does anyone know how this would work? The lady I spoke to on the phone at first direct was very helpful but didn't sound too sure and I don't want to 'waste' this years allowance in a low interest account.

Thanks

Gary

glider3560

Yes, the 3% applies to the whole balance in the account.

JPR

First Direct seem all over the place on this one. I was told I could NOT add more money unless i "re-activated" the account. As a telephone and internet bank, this, naturally, has to be done by post!

Then I had a message from them stating that as I had only transferred existing ISA money from another account last year, I wasnot allowed to add new money this year??

They were unable to quote any terms & conditions about this. Anyone else throw some light on it

glider3560

JPR wrote: »

First Direct seem all over the place on this one. I was told I could NOT add more money unless i "re-activated" the account. As a telephone and internet bank, this, naturally, has to be done by post!

Only needs "re-activating" if you haven't subscribed to that particular ISA in the previous tax year.

JPR wrote: »

Then I had a message from them stating that as I had only transferred existing ISA money from another account last year, I wasnot allowed to add new money this year??

They were unable to quote any terms & conditions about this. Anyone else throw some light on it

Probably mis-understanding by the staff.