Lloyds Bank ISA - I've dropped a clanger

100mel

Whilst away and in somewhat of a hurry accessing bank accounts I transferred some money into my ISA account which was supposed to go into my current account - as soon as I discovered the mistake I transferred this exact same amount back out again. Now Lloyds Bank tell me that this mistaken transaction has reduced my ISA limit for the year by that amount

Is this correct? Seems very harsh for a slight slip on the keyboard particularly when bank encourages you to do everything online

Badger_Lady

As far as I know yes, they are right You are only allowed to pay the set limit in each year, regardless of what you withdraw. So if you've paid it in, for any length of time, it counts toward that total.

Sorry

Mikeyorks

100mel wrote: »

Is this correct?

If - and it fairly obviously is - it's an ISA with headroom still up to the £5.1k allowance ....... then I'm afraid they're correct. Nothing to do with the 'taking out' but all to do with the 'putting in' ..... as that counts towards the annual allowance.

I've only once had to work with a variable rate ISA (always tend to fix them) ..... and it annoyed me that it was sitting in my Portfolio just like any other account - despite being fully subscribed from the outset. And, unlike the fixed ones, you could unwittingly move money out of it, and which was then irreplaceable. Eventually I just found a way of removing it from the Portfolio view so it couldn't be hit by accident ......... but could be pulled into view if needed. Is there some option there? Or can't lightening strike twice .....?

100mel

Yes - sounds like a good idea - make it hidden from view somehow so it doesn't appear

Expensive mistake on the drop down menu for me!