Fixed Rate ISA - am I locked in?

Peejb

Hi

A few months ago i took out a 2 year Fixed rate E-ISA with Northern Rock

Stupid me didnt read the small print which stated that deposits had to be made within 30 days of opening account, so after transferring my old ISAs into this one I had assumed i would be able to make monthly payments into the ISA for its 2 years duration. I've now received a cheque from Northern Rock returning my latest payment as the issue is now closed. A bank that doesn't want my money!

I'm now stuck with an ISA where i cant make new payments in which is not really very good. Northern Rock do state you can withdraw for a loss of 90 days interest.

Is this my only option? My initial thought is to take the charge and transfer the ISA into an easy access with a different provider. Or ring N Rock and see what they can do. Can i transfer to someone else this year or have i now used my allowance?

Any advice will be greatly received.

McKneff

Apart from your old Isas was there any 'new money' paid in after April 5th this year.

If yes, you will just have to take it on the chin and save up in a high rate savings account any new money and just let the other one runs its 2 year course.

If no, the just open another ISA and put your savings in there.

Lokolo

Some providers will allow you to use the rest of your allowance with them in a different account. So if you have deposited £500 of new allowance you can deposit the rest (£4840) in another ISA provided by NR.

Joe_Bloggs

Fixed rate ISAs often mean a fixed interest rate for a fixed term for a fixed amount of money.
The money can come from previous ISA contribution years, 'Old Money' as McKneff said and new money from the the present ISA year.
You can split up old ISA money anyway you like . There are a more restrictions with new ISA money.

J_B.

Peejb

McKneff wrote: »

Apart from your old Isas was there any 'new money' paid in after April 5th this year.

If yes, you will just have to take it on the chin and save up in a high rate savings account any new money and just let the other one runs its 2 year course.

If no, the just open another ISA and put your savings in there.

Yes, unfortunately, I set up a standing order straight away so at least 1 payment went in under new tax year.

Peejb

Lokolo wrote: »

Some providers will allow you to use the rest of your allowance with them in a different account. So if you have deposited £500 of new allowance you can deposit the rest (£4840) in another ISA provided by NR.

Thanks Lokolo

I'll give Northern Rock a ring tomorrow, see if they'll let me do that. I'll post the outcome in this thread. A lesson learned i guess......

Peejb

Spoke to Northern Rock, they wont split the ISA. They only offered the transfer to one of their products as a loss of 90 days interest (£26).

Never mind. I can start a new ISA allowance in April, and I've opened up a 3% Post Office Online Saver in the meantime.

Lokolo

Peejb wrote: »

Spoke to Northern Rock, they wont split the ISA. They only offered the transfer to one of their products as a loss of 90 days interest (£26).

Never mind. I can start a new ISA allowance in April, and I've opened up a 3% Post Office Online Saver in the meantime.

Do you have online access?

If I were you, I would open up an e-ISA type thing and deposit £1. If that doesn't get returned you can use the rest of your allowance there (but you will have to make sure you don't go over your ISA allowance).

If it does get returned then sadface. But maybe worth a try?

AirlieBird

Phone the HMRC ISA Helpline (0845 604 1701 Mon-Fri 8am-5pm) and see what they'll allow you to do.

Peejb

Lokolo wrote: »

Do you have online access?

If I were you, I would open up an e-ISA type thing and deposit £1. If that doesn't get returned you can use the rest of your allowance there (but you will have to make sure you don't go over your ISA allowance).

If it does get returned then sadface. But maybe worth a try?

Hmmmm! Might be worth a try, I'll give it a go. Thanks for the suggestion.