Can I set up an ISA without a chequebook??

wannabedebtfreeby30

Hi all

This sounds like a daft question, but it's not until I've got halfway through my Santander application that it said I have to send a cheque to make my first deposit on my first ISA.

Well until yesterday I had debt problems, and only had a basic bank account so I therefore do not have a chequebook. I have now paid my debts off and want to start saving - as you do!

Are there any good ISA's out there where I can set up online and just make an online transfer from my basic bank account to set up my ISA?? I seem to find only cheque ones!!

This is very annoying! I would like a current account but worried that applying for one will entail a credit check that I will not yet pass... I hope this does not mean I can't get an ISA

Any advice you can give would be much appreciated.

WDFB30 (need to change my username!!!) x

xylophone

Open an instant access ISA with your existing bank and then transfer to your chosen provider via an ISA transfer form?

le_loup

No. Many providers ask for a cheque as the first payment as part of it's money laundering checks,

VoucherMan

Seems strange.

Wasn't it the banks that wanted to get rid of cheque books?

Lansdowne

Is there any reason why you are insisting on setting up the account online? Surely you could just go into a branch (with passport/DL and bills etc as ID) and open the ISA with an amount in cash, then as you can say you can add to it by online transfer.
Oh yes and make sure it is an account that you can continue to add to, as many only accept one payment then you're stuck.

wannabedebtfreeby30

Thanks all, I think I will have to go into a branch then and do it that way. I agree with you VoucherMan; I thought they were phasing out cheques too. So many places won't take them now! Getting a fast access one and doing the transfer thing sounds more longwinded but a good backup plan, thanks xylophone.

I think I'll have lots more research to do though, because a lot of the higher interest ones insist on cheque and/or you can only make one big deposit (which is what I WANT to do anyway! Grrrr).

It is so frustrating. I've managed to get out of debt and now really want to do the right thing and get saving - why the obstacles!?! In the meantime I have found a 'regular' savings account I can dump the cash into while I sort out an ISA which has a good enough interest rate - better than leaving it in my current account.

Thanks for all the advice. Much appreciated.

WDFB30 x

The_Enforcer

Bear in mind, though, that many regular savings accounts have restricted access and impose penalties for withdrawal of funds before a set period of time, particularly those with fixed rates.

Ultrasonic

le_loup wrote: »

No. Many providers ask for a cheque as the first payment as part of it's money laundering checks,

Out of interest, would a cheque actually be any better than an electronic transfer from a bank account in this regard?

missile

Santander application

Would not be my choice for a provider

opinions4u

Ultrasonic wrote: »

Out of interest, would a cheque actually be any better than an electronic transfer from a bank account in this regard?

It depends on the strength of the systems of the bank or building society involved.

Some have stuck with cheque to prove identity and also to verify where funds should be sent to on withdrawal to avoid spending several £million on an IT upgrade to incorporate eVerification.

They may also fear fraud. With the advent of Faster Payments the initial cheque and clearance time slows down the timescale in which money could be bounced through a potentially innocent third party's account by a fraudster or money launderer.

Sooner or later the reliance on cheque will go, because more and more people simply don't have or don't want cheque books.

le_loup

Ultrasonic wrote: »

Out of interest, would a cheque actually be any better than an electronic transfer from a bank account in this regard?

Well, it proves you have an account in your name and that the money is coming from that account.