Dormant ISA

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
7 replies 3.6K views
lipidicmanlipidicman Forumite
2.6K Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I just had a letter from my mini-cash ISA provider to say I hadnt paid in this year. I paid the max into another mini-cash ISA instead so this was no surprise. What did surprise me was that the letter said if I didnt (which I cant obviously) I would have to reapply if I wanted to pay in next year (ie after april 6). It seems I cant avoid this

Does anyone know if this is a general rule? or is it my provider?

Oh well, maybe time to reassess and do a transfer anyway

Replies

  • MJSWMJSW Forumite
    171 Posts
    It's an Inland Revenue rule. You can continue to pay into the same ISA every year without reapplying. But if you skip a tax year, you need to complete a fresh application if you then want to pay in any more in the year after.
  • Yep, checked in branch - they just give you a new passbook - pretty simple really, but silly rule!
  • billieboy_2billieboy_2 Forumite
    1.4K Posts
    Part of the Furniture Combo Breaker
    ✭✭✭
    lipidicman wrote:
    I just had a letter from my mini-cash ISA provider to say I hadnt paid in this year. I paid the max into another mini-cash ISA instead so this was no surprise. What did surprise me was that the letter said if I didnt (which I cant obviously) I would have to reapply if I wanted to pay in next year (ie after april 6). It seems I cant avoid this

    Does anyone know if this is a general rule? or is it my provider?

    Oh well, maybe time to reassess and do a transfer anyway

    MIGHT SEEM A SILLY QUESTION, BUT DOES THIS MEAN THAT YOU CAN HAVE MORE THAN ONE MINI CASH ISA GOING AT THE SAME TIME? I'VE GOT ONE WITH NATIONWIDE BUT IT'S NOT GIVING THE BEST RATE OF INTEREST. IF I OPENED ONE WITH A BETTER RATE GIVER, COULD I SPLIT MY £3000 LIMIT BETWEEN THE TWO (TO KEEP THE NATIONWIDE ONE GOING IN CASE THEY UP THEIR INTEREST RATE)? OR WOULD IT BE BETTER JUST TO TRANSFER TO A BETTER RATE GIVER? I DON'T KNOW WHETHER NATIONWIDE CHARGES A TRANSFER FEE - CAN'T FIND ANYTHING ON THEIR WEBSITE.
  • lipidicmanlipidicman Forumite
    2.6K Posts
    I dont think you can split a years subscription (ie 1500 in each etc) so if you open a new one you are forced to let the old one go 'dormant' (ie no deposits in a tax year)
  • billieboy_2billieboy_2 Forumite
    1.4K Posts
    Part of the Furniture Combo Breaker
    ✭✭✭
    Thanks for that.
  • grumblergrumbler Forumite
    54.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭✭
    billieboy wrote:
    MIGHT SEEM A SILLY QUESTION, BUT DOES THIS MEAN THAT YOU CAN HAVE MORE THAN ONE MINI CASH ISA GOING AT THE SAME TIME? I'VE GOT ONE WITH NATIONWIDE BUT IT'S NOT GIVING THE BEST RATE OF INTEREST. IF I OPENED ONE WITH A BETTER RATE GIVER, COULD I SPLIT MY £3000 LIMIT BETWEEN THE TWO (TO KEEP THE NATIONWIDE ONE GOING IN CASE THEY UP THEIR INTEREST RATE)? OR WOULD IT BE BETTER JUST TO TRANSFER TO A BETTER RATE GIVER? I DON'T KNOW WHETHER NATIONWIDE CHARGES A TRANSFER FEE - CAN'T FIND ANYTHING ON THEIR WEBSITE.
    1. Yes, you can
    2. There is no good to split. I think it would be better to transfer.
    We are born naked, wet and hungry...Then things get worse. :(

    .withdrawal, NOT withdrawel ..bear with me, NOT bare with me
    .definitely, NOT definately ......separate, NOT seperate
    should have, NOT should of
    .....guaranteed, NOT guarenteed
  • billieboy_2billieboy_2 Forumite
    1.4K Posts
    Part of the Furniture Combo Breaker
    ✭✭✭
    Thank You Grumbler. Will See Who Has The Best Rate And Find Out How Much If Any The Transfer Fee Is.
This discussion has been closed.
Latest MSE News and Guides

Energy price cap could be extended beyond 2023

New plans have just been announced by the Government

MSE News

Cheap contents insurance for tenants

DON'T assume your landlord covers you

MSE Guides

Summer sizzlers round-up

Incl £2ish sun cream & £1.50 disposable BBQs

MSE Deals