AA Internet Access ISA (Issue 3) - 3.5%

10_66

chris_fc wrote: »

I only want to stick £1500 in an ISA but i've noticed this is a minimum £2500...so if i stick £2500 in can i just withdraw 1k after a week or so or am i not allowed to go below £2500??

I can't see anywhere that you can't do this (having had a quick skim through the t&cs). However, don't forget that if you did this, you'd be limiting how much you can add if you wanted to later on (ie you can't add more than a further £2840, if for example it's this financial year as you would have already paid in £2,500).

brewerdave

MoneySaverLog wrote: »

Really bad advice!!!

Far better I would have thought to open the ISA and not subscribe any new money until after the 5th April which I believe you can do. No need to withdraw the money, though of cause you could do a transfer as well to get a better rate on any previous year ISAs to someone that accepts them as AA don't.

Fill in the new providers transfer form to do this though.

Thanks MoneySaverLog - I'm fully aware of the situation - just seems daft that they won't let us keep ~ £5.5k with them for another 12 months but have to move it to another institution.
As to the "advice" from the Customer Services agent - very bad training!!!
Suspect that they are going to get a LOT of phone calls as people reach the bonus maturity date in the next couple of months...and AA are not offering any options for the money within an ISA wrapper other than the miserable 0.5% variable rate!
UPDATE -They do have an 18mth FR ISA -but for AA members only!!:rotfl:

spluff

Do you think it is possible I can open this and transfer the full 5k before the deadline for this current Tax year? Or have i left it too late

10_66

spluff wrote: »

Do you think it is possible I can open this and transfer the full 5k before the deadline for this current Tax year? Or have i left it too late

Not sure what you mean. You can't transfer previous ISAs into this product. If you mean pay in this year's subscription, you can just open it now. If the latter is what you mean, then I should hope the AA would be able to set it up and accept your cheque before the 6 April.

spluff

yes i meant the latter - a new deposit this years allowance

penny_pincha

10_66 wrote: »

I was hoping that it would be less than 2-3 weeks. If the funds don't start to earn interest until 1 day after the cheque's cleared (which obviously happen until the cheque's banked), and if it's sitting in a back log, the lost interest adds up.

This made me think that if you can only access your money via a clerical system and not do it on line then in a year's time when the offer ends you might be help up releasing the capital.:(

MiserlyMartin

Does anyone know if they are taking ISA money in advance for the 2012-2013 tax year or do you have to open this in this ISA tax year? Its not clear on MSE or the AA website if they accept applications for next years subscriptions...

Sceptic001

MiserlyMartin wrote: »

Does anyone know if they are taking ISA money in advance for the 2012-2013 tax year or do you have to open this in this ISA tax year? Its not clear on MSE or the AA website if they accept applications for next years subscriptions...

The instructions for submitting a cheque say:

write the account number on the reverse of the cheque stating 'Internet ISA' along with the tax year you wish to invest in

so it would seem safe to assume they will accept deposits for 2012/13.

MiserlyMartin

Ok thanks.

I don't like this bit:

"Initial Deposit. You must make the opening payment to your Account with a cheque drawn from
your Linked Account and made payable to yourself. Your name must be pre-printed on the cheque.
Once we have made sure the details on the cheque correspond with your Linked Account we will pay it
into your Account."

How can we make sure the cheque gets to them so that they pay it in on April 6th? Even if they do manage to pay it in on time we still have cheque clearing times!

Cheques. Thats so last century in this age of faster payments. I suspect this is a tactic to avoid paying a full tax years interest by AA/Birmingham Midshires. Maybe not such a good deal after all?

opinions4u

I suspect this is a tactic to avoid paying a full tax years interest by AA/Birmingham Midshires. Maybe not such a good deal after all?

It's actually a way for them to comply with Money Laundering regulations.

I suspect (not tested the theory) that if you open their normal savings account with £1, using a cheque from the linked account, you won't then need a cheque to fund the ISA with if you subsequently open one. Faster Payments in will be fine.