New Santander ISA being opened now - can I close it and go elsewhere?

chequeout

Hi all,

Just a quickie! I am a very satisfied ex-A&L now a Santander current account holder (yes, I know I'm in the minority) so decided to go ahead and open the 3.3% current best-buy cash ISA with them. I have just posted them photocopies of my ID which they asked for, so I'm guessing the set-up process is already well underway.

HOWEVER I now want to change my mind. I have read so many terrible experiences on here with Santander and their poor customer service that I now want to put it in NS&I which I already have from last year (yes, lower interest at 2.5% but at least I know their service is good, etc).

Can I pay into the NS&I account the maximum 5340 for this year? Or have I technically "opened" an ISA with Santander for this year (although I haven't yet paid any money into the account) so have to stick with them now for this year?

Also, when filling in my online application for the Santander ISA, it asked how much I will be opening the account with. I said just £1 (I never pay in any more til I know things are up and running). Therefore, can they automatically take this £1 from my current account as it is an instruction provided by me on opening the account thus preventing me from putting new money into the NS&I Isa?

Thanks in advance for any help!

The_Enforcer

I suspect it may be too late to stop the transfer. I opened my ISA on Sunday and the £1 was transferred from my A&L current account at some point yesterday. Unless you can find a specific reference to cancellation in their terms and conditions, I fear that the Santander machine will be unstoppable. You could 'try' their customer services?

If the NS&I accepted transfers in, then you could simply request a transfer and then subscribe to that once the funds have gone through. So, instead, you may want to consider opening a Halifax Direct Isa Reward at 3% (3.2% if a reward current account holder) and tranferring your £1 into there and then subscribing to that account, but you will have to hurry, as I have read on another thread that this ISA is being withdrawn on 18th June. You could repeat that process with any other ISA that allows transfers in. There's a list of the best payers knocking around on the forum.

sueeve

I believe that once you have paid into an Isa ths year, even a £1, you cannot pay into another. You can however transfer what you have paid in, but not then add to it. So I think what you will have to d is put the rest of your annual allowace into Santander, and then once the full amount is in transfer in one go. You are in danger of losing the rest of this year's allowance.
I went through this last year with the Barnsley, but I managed to close the account before anything went in, and opened with Principality.

AirlieBird

ISA regulations allow for a cooling off period - typically 14 days. Check the T&C to see if you have one.

blueberrypie

sueeve wrote: »

I believe that once you have paid into an Isa ths year, even a £1, you cannot pay into another. You can however transfer what you have paid in, but not then add to it.

This is incorrect. You can transfer funds that you have paid in during the current tax year, and you can then add further funds to the new ISA, up to the current year's allowance.

This assumes that the new ISA allows additional contributions, of course - in general fixed-rate ISAs allow one lump sum paid in and then no further contributions until maturity.

junglejim2

I am a very satisfied ex-A&L now a Santander current account holder

If that is the case then why stop the application. It looks as if the application is progressing fine.
Most of the probs with this product is getting to the stage you are at, once opened and running it is fine.
I would just go with it.