First Direct to launch 6.25% mini cash ISA

m_jstap

wow - this is getting v serious now - time for MSE martin to step in.
I have only read about everyone else's posts here on the limits of transferring previous cash isa's after my call to first direct.(so I didn' t know the chaos that is starting to grow here)
I opened the cash ISA with a view to transferring 3 years previous subscriptions from my other ISA providers.i had reviewed the terms and conditions from their website before I opened the account 4 days ago.
Today, The nice lady at first direct had to put me on hold twice when I asked about the procedure for transferring previous isas into the FD isa. she came back to me saying you can only put in a max of £3k until oct 6th 2005, then you can transfer some more. I asked why oct 6th - she replied its because its when the interest rate goes down.
I told her there is nothing in the Terms and conditions I downloaded from their website 4 days ago with any limitations, especially a £3k capped limit. I reminded her they can’t changes the T's and C's without notice, and I have a right to cancel (we have one anyway for the 14 day cooling off period).
I can see a mess coming up here - we have to put in £1 min to open it - so we are therefore subscribing to a fd isa for this tax year. I can see the 14 day cooling off period passing before it becomes clear that this is now a poor deal, yet we are only allowed to subscribe to one cash isa for one tax year. There are going to be loads and loads of people with their hands tied to these naughty banks that change their T's and C's without telling everyone clearly. I already have a first direct current account; this is the first time FD have not played fair with me..
Come on martin - its time to give first direct a hard time on this for deceiving their customers on what is a chart topping cash ISA on first inspection....

Hobo_2

For FD read stupid bank, Yes they`ve gone for table topping headline rate, but when calc over year rate is just over 5%, sucked a lot of custom in.
Now looks like a panic on product design, the fear of people bagging the 6.25% rate then transfer away in october!

moomintroll_3

Hmmm... Interesting thread.

I opened an FD ISA on 6 Apr and shoved 3K in. At the same time (on the same application) I requested a transfer pack for my previous ISA. This was duly sent and the letter says "We can confirm that first direct will accept the transfer of your account". I've filled in the transfer form and sent it back, lets see what happens!

G

grumbler

mse_jstap wrote:

..I opened the cash ISA with a view to transferring 3 years previous subscriptions from my other ISA providers.i had reviewed the terms and conditions from their website before I opened the account 4 days ago.
Today, The nice lady at first direct had to put me on hold twice when I asked about the procedure for transferring previous isas into the FD isa. she came back to me saying you can only put in a max of £3k until oct 6th 2005, then you can transfer some more. I asked why oct 6th - she replied its because its when the interest rate goes down.
I told her there is nothing in the Terms and conditions I downloaded from their website 4 days ago with any limitations, especially a £3k capped limit...

As far as I remember this ISA had restrictions on transfers from the very begining - see posts #16 from 17/02 here and following posts...

.. I can see a mess coming up here - we have to put in £1 min to open it - so we are therefore subscribing to a fd isa for this tax year. I can see the 14 day cooling off period passing before it becomes clear that this is now a poor deal, yet we are only allowed to subscribe to one cash isa for one tax year...

You can transfer this ISA to some other provider at any time (and all other ISAs if the new provider does not have restrictions on transfers. FD do not charge you for transfer as some other providers do.

lipidicman

I can see a problem that some ISAs require you to put in an initial deposit - you cannot open them with a transfer (Halifax ISA direct is like this - you have to open it with an online deposit) I dont know how many ISAs this applies to though

Laura_2-2

First Direct Isa

Is it correct that not only will the rate drop after 8 months but in addition they are only allowing you to pay in your £3,000 limit and cannot transfer any existing Isa into it????

Davey_2

I contacted First Direct the other day about transfering my existing ISA to theirs which i had just opened and was told the documents that i needed to make the transfer would be with me in a couple of days, so as far as i know you can transfer into it, i haven't heard otherwise.

Dave

Davey_2

In fact just checked the post and the transfer forms have arrived so i'll get them posted ASAP and see what happens

jimclark1967

Laura wrote:

First Direct Isa

Is it correct that not only will the rate drop after 8 months but in addition they are only allowing you to pay in your £3,000 limit and cannot transfer any existing Isa into it????

It's worse than that - the rate drops in early October so barely 5 months by the time you've got it open.

Really not worth the bother for an extra 0.9% on £3000 for 5 months IMHO

Milarky

Just to clarify:

FD does allows a transfer-in but restricts this to the 'current' tax year. Alternatively if you have [only just] subscribed to a different ISA then FD would accept that. But a subscription to last year's ISA allowance they won't accept. If you haven't started an ISA with anyone at all for 2005-06 yet then you can go straight to FD and open one with upto 3,000

[By opening or transferring with 3,000 between 21 February -when the offer was started for 'new' accounts only - and 5 April [i.e. in 2004-05] and then subscribing in the new tax year to an already open account it is possible to have up to 6,000 at the 'tarting' rate therefore]