IGNORE! [NS&I Direct ISA Q]

morg_monster

[sorry answered my own question]

Hi
I was thinking of opening one of these ISAs to get a better rate. I already have about £1500 in an ISA (all invested this tax year) which I hold with A&L. I was planning to transfer this over - Is this allowed? I know it says you can't transfer over PREVIOUS year's ISAs, however this is all invested this year, so is this OK?

Edited - I now realise that the word "previous" is a bit of a misleading statement from wherever I read it and this product doesn't accept ANY transfers in. Fine!

Paul_Herring

To be honest, their T&C's appear preclude anyone who's started an ISA this year from joining them:

10. The applicant must not subscribe to a maxi ISA or another cash mini ISA in the same tax year (ie a period of 12 months starting on 6 April).

This is to be expected - it's one of the government's rules.

13. The minimum investment to open a Direct ISA is £1,000. It may be opened for any amount above this minimum subject to the maximum subscription limit (see paragraph 17). The initial deposit to open the Direct ISA may be made by telephone or via the internet, by a debit card in the applicant’s name.

Emphasis mine - no mention is made of a transfer (into the account) either in this paragraph, or any of the others. Only mention of transfers is out of the account (§29, §30)

The implication being that you cannot use this years contributions to open the account (otherwise you'd be breaking §13), and if you open an account anyway you'll end up with two this tax year (breaking §10)...

morg_monster

Thanks Paul. Sounds like the best idea is just to wait and open it next tax year, hope the offer's still around then!

Cypher

It should be

Direct ISA - Interest rates
Tax-free / variable
Minimum investment £1,000.

Tax-free rate pa/AER 5.55%
Guaranteed to stay 0.55% above the base rate until at least 5 April 2008

Paul_Herring

It *will* be - this too is in the T&C's:

3. All deposits accepted (see paragraph 16) will earn interest at a variable rate. This rate is guaranteed to stay 0.55% above the Bank of England repo rate (the base rate) until 5 April 2008. After that date we may extend, amend or withdraw the guarantee. Notice of changes to rates will be given in the London, Edinburgh and Belfast Gazettes. Details of the current rate are set out in our Interest Rates leaflet available at post offices and from NS&I.

Cypher

I said "should be" as they could withdraw the offer in April, whilst still satisfying the guarantees to existing customers, unlikely to happen but they could.

Paul_Herring

Cypher wrote:

I said "should be" as they could withdraw the offer in April, whilst still satisfying the guarantees to existing customers, unlikely to happen but they could.

Ah - gotcha; for some reason I thought (wrongly) you were talking about existing customers. Blame lack of caffeine.

That said, the T&C's allow them to withdraw the offer well before April (while keeping the rate for existing customers.)