Opening NS&I Direct ISA (how to handle current ISA)

dmibizz

Hi all.

I have a HSBC cash ISA for two years now which due to getting into a property I just almost emptied.

I want to open a NS&I Direct ISA which says that one cannot transfer from another ISA provider (not really interested as I have almost nothing in my HSBC ISA). Therefore I guess I will only benefit from the NS&I Direct ISA from April 6th. (so far everything clear)

Now, I guess I need to stop the HSBC ISA on april 6 and start the new NS&I Direct ISA... the question is: Should I call HSBC and tell them that next year (i.e. from 6th april I don't want to keep their ISA). Or should I go direct to NS&I open the ISA and make the first payment in april to their ISA and not HSBC...????

Another way to ask, does an ISA gets activated for the current year when one makes a first deposit, or does it get activated automatically by your current provider?
Thx!

RayWolfe

You do not have to tell your current provider. All you need to do is open the new one. ISAs give continuos authority so that you do not have to do a new application if you have an existing ISA and are continuing with that provider.
i.e. Same provider as last year, no form
New provider this year, new application.