Santander 'stole' my ISA allowance

pqrdef

Headly wrote: »

If so, that doesn't seem at all fair to me.

Question is though, why do you think you're getting the higher interest rate on a fixed-term account compared to an instant-access account?

It's because you're committing the money for a fixed 2-year term. Which doesn't mean you can stick money in when you feel like it, or not, if you don't. If you could, the bank would be on a hiding to nothing.

However, in non-ISA land, if you've got more money to save later, although you probably can't add to the existing bond, you can just open a new one. Though you may not get the same rate as the other one, you'll have to take what the current rate is.

This is where the ISA rules get sticky. Unless the bank is particularly obliging, they don't let you open a new bond.

There's a bit of a deadlock here. The taxman sees no reason to change the rules, and the bank is a bank. (Nationwide is more obliging, but it's not a bank.)

jimjames

Why not transfer the ISA to another company and then add the balance?

Or put it into a S&S ISA instead?

badger09

jimjames wrote: »

Why not transfer the ISA to another company and then add the balance?

Or put it into a S&S ISA instead?

Because its a 2 year Fixed Rate ISA

Early closure (no part withdrawals) incurs 120 days loss of interest

innovate

Headly wrote: »

Innovate,

Thanks for your constructive input.

Have a nice life. If you have one.

Headly

I am sorry (but not totally surprised), Headly, that you appear to be unable to take any constructive criticism, or to take responsibility for your own actions.

I also notice with interest that, as of now, you have neither responded to any of the suggestions others made, nor thanked any of them for taking the time to respond to your problem.

Seems it's time you grew up a bit, Headly.

psychic_teabag

BTW, a different tactic entirely, if your spare income is reasonably consistent, is to use a regular-saver account to build up a lump sum for next year's ISA. Even after tax, these can give a better rate than ISAs, and you can put the lump sum into a fixed-rate ISA and start over.

Pound

I think we should cut the OP some slack. I've had a look at the details of the 2 year fixed ISA and nowhere on the main details page does it say you cannot make deposits after 14 days. If you click the legal details, then another link for that product it's only then that you can see in a two page document of small print, "No subsequent additional deposits allowed"

Personally I might have missed that too. I think Santander could have made this a bit clearer, who here really reads all the terms and conditions before signing up for something?

innovate

Pound wrote: »

I think we should cut the OP some slack. I've had a look at the details of the 2 year fixed ISA and nowhere on the main details page does it say you cannot make deposits after 14 days. If you click the legal details, then another link for that product it's only then that you can see in a two page document of small print, "No subsequent additional deposits allowed"

Personally I might have missed that too. I think Santander could have made this a bit clearer, who here really reads all the terms and conditions before signing up for something?

Yes, granted, it is not on the front page of the blurb and it could be, but

1. the details are a mere 2 pages, in large font. Really not too onerous to find and read it.
   .
2. it is the norm with fixed term / fixed interest rate savings accounts (ISAs or non-ISAs) that you can only make limited number of deposits, and/or for a limited time. The only fixed term / fixed rate ISA that I am aware of is the Lloyds 2-year one, listed in Kazza's top cash ISAs thread.
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3. failure to read the material they provide is insufficient reason for accusing them of "theft" and discrimination. Explaining the mistake to them and asking them for help would be a lot more promising.
   

Funkyfreddy

Headly wrote: »

..
Does this really mean that I've lost my entitlement to save the balance of my ISA allowance for this year?
...

Depending on how much of this years remaining allowance you expect to be able to make use of and when/for how long you need to do the maths and see if it is worth taking the "Hit" (120 days loss of interest on current balance ?) and transfer into something that A) allows transfers in and additional deposits through the current tax year.

redcolabottle

The same thing happened to me - And I have to say I'm fuming. I did go through the T&Cs but not the tiny print and this wasn't clear anywhere. However I see now that when you go to sign up it's in BOLD font (perhaps because they've had lots of complaints). I'm afraid I haven't looked at a fixed account before and I wasn't aware of these terms. If I had been I would have transferred in the full amount within the 14 days needed...

They constantly contact me about opening more accounts with them, getting credit cards etc but when they started to refuse my Standing Order and when the deadline for transferring in cash came and went - no one got in touch at all.

Also what's particularly amazing is that Santander accepted my £470 monthly standing order for 3 months. So that's outside the 14 day limit.

However when I spoke to them today they wouldn't give me any flexibility to pay in the remainder now and they wouldn't look into why they had accepted my first 3 Standing orders (even outside the 14 days) and then stopped accepting them...

Any ideas what I can do? Transfer to another ISA and pay in for the rest of the tax year?

[Deleted User]

badger09 wrote: »

Because its a 2 year Fixed Rate ISA

Early closure (no part withdrawals) incurs 120 days loss of interest

Where's the problem? If it was only opened 1 month ago, you'll only lose 1 month's interest. Which isn't a lot - given their 2 year ISA is about 4%/yr, you stand to lose about £3.50.