Have I just lost 4 years' worth of ISA allowance?

spikyone

black_taxi wrote: »

surprised nat west never contacted you before transfer---isa surely raises alarm bells

Really? If it's an instant access ISA - which it must be according to the OP's version of events - why would Natwest query someone withdrawing their money? The OP was free to do this at any time, and with zero notice.
NW will have no way to tell where the money's going, and since you're moving your money away from them, they probably won't care where it's going anyway!

black_taxi_2

natwest knows customer will lose allowance but couldnt care less---no doubt they used her money to lend out at 21%

fair enough

bigfreddiel

spikyone wrote: »

Really? If it's an instant access ISA - which it must be according to the OP's version of events - why would Natwest query someone withdrawing their money? The OP was free to do this at any time, and with zero notice.
NW will have no way to tell where the money's going, and since you're moving your money away from them, they probably won't care where it's going anyway!

i was in an a&l branch many years ago - an old lady was enquiring about their new isa - the counter staff actually told her to withdraw and close her old isa with them and open their new isa with this money - i almost said something but i didn't - confidentiality and all that.

also a recent survey of bank staff revealed most (97%+) could not answer the most basic of isa questions.

http://www.calculator.co.uk/news/consumer/Banks-give-shockingly-poor-ISA-advice.html

good innit!

fj

spikyone

black_taxi wrote: »

natwest knows customer will lose allowance but couldnt care less---no doubt they used her money to lend out at 21%

fair enough

The OP withdrew their money online (by transferring it out of their account), in case you missed that. If you have an instant access ISA, try withdrawing cash from it online, and see if they warn you - whichever bank it is. The whole point of an instant access ISA is that it's a flexible account that lets you withdraw cash whenever you want, with zero notice. How on earth can you criticise a bank for operating a product exactly as it's supposed to operate?!

Natwest have no reason to question a withdrawal as it is the customer's money to withdraw. And as I've said, Natwest couldn't possibly know that the customer is going to try and use it to fund another ISA with a different provider. bigfreddiel's example is a bit different, of course. :eek:

Mr_K

Think you're all being a bit harsh on the OP. Not everyone has transferred an ISA before. To the 'uninitiated' transferring money from account to the other would be the logical thing to do. I suspect many have been caught out.

As mentioned you try contacting HMRC/Halifax and plead you case, don't get your hopes up though. I wouldn't worry about it too much, worse things happen. Rates are so low that unless you've got a very large amount the difference between tax and tax free isn't going to be a fortune.

ffacoffipawb

Mr_K wrote: »

Think you're all being a bit harsh on the OP. Not everyone has transferred an ISA before. To the 'uninitiated' transferring money from account to the other would be the logical thing to do. I suspect many have been caught out.

As mentioned you try contacting HMRC/Halifax and plead you case, don't get your hopes up though. I wouldn't worry about it too much, worse things happen. Rates are so low that unless you've got a very large amount the difference between tax and tax free isn't going to be a fortune.

There should be a way of reversing obvious errors / misunderstandings however.

TheMatrix_2

Mr_K wrote: »

Rates are so low that unless you've got a very large amount the difference between tax and tax free isn't going to be a fortune.

Yes, but it can never be put back into a ISA once withdrawn, and if it was the full subscription every year that's quite a chunk of money which could have been sitting in a tax free account waiting for when the rates eventually do go back up.

jonnyd281

I have a Nat West ISA, it warns in the online banking that you are about to withdraw the money from an ISA and that you can't put it back again if you are over the ISA limit for that year.

spikyone

jonnyd281 wrote: »

I have a Nat West ISA, it warns in the online banking that you are about to withdraw the money from an ISA and that you can't put it back again if you are over the ISA limit for that year.

In which case I stand corrected - I don't recall 'em doing that when I had one, and Halifax certainly don't but maybe I never actually withdrew from my NW ISA!

bigfreddiel

Mr_K wrote: »

I wouldn't worry about it too much, worse things happen. Rates are so low that unless you've got a very large amount the difference between tax and tax free isn't going to be a fortune.

Hmmm.... Mr K - you must have a different outlook on money to me - had my savings not been in an ISA I would have given HMRC £1000 this year, £800 last year, £700 the pevious year and so on - glad its in my pocket and not his!

No matter how much you have even when it starts small its vital not to waste a year - this poster has just wasted 4 years - £20k's worth - he could be keeping £200 a year right now but he wont be!