Help with wanting new ISA!

lilruthc

Hi all,

Last night I threw the towl in with Santander, after months of problems with them I told them I had had enough, and wanted to leave them.

Briefly, I have been having problems with them for months. Back in September I was trying to move money out of my ISA to my linked current account (different provider thankfully) and despite the money being in my ISA, the transaction kept being rejected. I eventually rang them (on more than one occasion) to ask them why the transaction was being rejected, they didnt know why (checked the securty status on my account etc) and did the transfer over the phone for me, although even that failed a couple of times resulting in my having to ring them more and more!

More recently, over the last week I have been trying to move money INTO the ISA, and again encountered problems. Money had not left my linked current account (which I again checked that there were no issues with) and the payment had not gone into my ISA by the end of 4 working days. I had told Santander that if the money wasnt there, I would leave. And I did....haha

Anyway, moving on to my actual question (now that I have got the rant off my chest!)....

I am aware of the one ISA a year rule. I am awaiting confirmation of closure of the ISA from Santander. Once I know that that ISA has been closed, can I open a new ISA elsewhere without breaking any rules?

Advice here would be much appreciated. Have noticed a distinct coldness towards Santander from other board users!

Lokolo

Technically no. You have subscribed to Santander for your ISA allowance, and unless you transfer the ISA elsewhere, you are stuck there.

However, you might possibly be able to open a new ISA elsewhere and ONLY top up by your allowance left. This is against the rules, but you might get away with it. You would not get away with it if you have deposited over your allownace with both the Santader contributions and elsewhere contributions. *I also don't recommend this without ringing HMRC first*

You could ring HMRC and ask them though.

lilruthc

Thanks, that is just what I needed to know.

I might ring Santander and ask for the closure of the account to be cancelled, if it can't then I may just live without an ISA temporarily. Either way, I dont want anything to do with Santander again!

lilruthc

Have now decided to ditch the ISA for this year, just opened a normal account alongside my current account (not an ISA!) which will do me until the start of the new tax year. Many thanks for your advice!

blueberrypie

Lokolo wrote: »

Technically no. You have subscribed to Santander for your ISA allowance, and unless you transfer the ISA elsewhere, you are stuck there.

However, you might possibly be able to open a new ISA elsewhere and ONLY top up by your allowance left. This is against the rules, but you might get away with it. You would not get away with it if you have deposited over your allownace with both the Santader contributions and elsewhere contributions.

Could the OP not take advantage of the allowed exceptions for self-transfers in the HMRC guidance? - whereby one self-transfer per year is allowed as long as the old ISA is closed before any contributions are made to the new one?

Lokolo

blueberrypie wrote: »

Could the OP not take advantage of the allowed exceptions for self-transfers in the HMRC guidance? - whereby one self-transfer per year is allowed as long as the old ISA is closed before any contributions are made to the new one?

Thats what I was suggesting, I didn't think it would be allowed though

blueberrypie

Lokolo wrote: »

Thats what I was suggesting, I didn't think it would be allowed though

I think HMRC would find it difficult to justify not allowing it when their own guidelines say it's okay :-)