Fixed rate ISA

Johnaldo

Hi all,

New to this so 'bear with' please.

I transferred old ISA money to a fixed rate cash ISA with the Post Office last September. Normally, every April I add new money into my ISA, but this time I was refused ... ... apparently it's against the rules for fixed rate ISAs :mad:. (I checked back, and it does say that in the small print, but they failed to make such an important point obvious in their sales blurb).

So, what's the point of that? I'd have been better off with a slightly lower rate (unfixed), but able to add to it for the next few years, wouldn't I?

Advice please,
Johnaldo

innovate

afraid, if it's in the T&Cs, you are bound by them. Many fixed rate / fixed term ISAs only have a very small deposit window, and sometimes just a single deposit is possible.

But not to worry - - you are free to open another ISA anywhere you like.

You can open a new ISA each financial year (i.e. can do one now). Just make sure you read the T&Cs this time before you commit!

May be spend half an hour reading through the MSE ISA guide, then come back with further questions

Johnaldo

Thanks for the quick reply.

Ok, so I'm stuck with my fixed rate ISA, fair enough.

In my first post I forgot to ask the supplementary question "Can I open another ISA?".

The trouble is, the more I research, the more I'm confused ... in some places it says you can, and in others you definitely can't.

So what's the answer ? Or is it one of those "well you can, BUT..." situations ?

Johnaldo.

innovate

You absolutely definitely can open a new cash ISA each financial year.

Last September was tax year 2011-2012.
Now we are in 2012-2013.

So you can open a new one now, to pay in new money (up to £5,640 this tax year).

You probably don't want to touch (transfer?) your last year's ISA until it has matured. You may or may not be able to request a transfer into the new ISA for this year - - some allow transfers-in, some don't.

Have you read the MSE Guide that I linked to earlier?

Johnaldo

Hi again,

Thanks for your definite answer, without any "buts".

Yes, I'd read the guide, but still couldn't find my answer with any certainty.

So ... now I think I'll go and find an instant access ISA to open with whatever I can scrape together up to £5,640.

Any more advice greatfully accepted ... I've obviously a lot to learn !

Cheers, Johnaldo.

kidmugsy

Try looking at the Newcastle BS website. They encourage you to spread your 2012-13 contribution over the set of ISAs they offer - so you could have one FR, one variable rate.....

sorcerer

Just remeber if you want to put more in throughout the year, you will likely need and instant access ISA.

MoneySaverLog

sorcerer wrote: »

Just remeber if you want to put more in throughout the year, you will likely need and instant access ISA.

Unless you have a fixed rate isa that does allow additional deposits throughout the fixed term. Mine does

opinions4u

Easy access ISA paying 3.50%.

http://www.theaa.com/savings/access-isa.html

Remember to transfer it elsewhere next year.

Johnaldo

Thanks for all the advice - just taken one out with Cheshire BS at 3.5%. Rate drops in October 2013.
John