Santander 'stole' my ISA allowance

thenudeone

le_loup wrote: »

There is a work around. Pay the rest into a different ISA account but still with Santander.
Most providers allow one years investment to be spread over multiple accounts.

AFAIK only a few allow this; certainly not most.

Newcastle BS do ("MaximISA") for example, but the rates aren't great.

The best workaround may be to transfer the ISA to a new provider in an ISA account which allows further deposits.
You are ALWAYS allowed to transfer an ISA to another provider, although their may be interest penalties for fixed rate or fixed period accounts.

badger09

billbennett wrote: »

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.

Not as I understand it. Penalty is 120 days interest, regardless of how long account has been open.

However, as OP had apparently only subscribed £1000, it would be worth taking the penalty hit of around £13.15 in order to allow him to use his whole ISA allowance.

CJ

As in an earlier post I told you of their unclear T&Cs concerning this ISA. My husband has been on the phone for half an hour now because they e mailed this week to say that they had extended the pay in date to the end of June because of a backlog but they didn't tell the customer. He's paid £1000 in about 26 days after it opened and thought he could pay the rest in now to find that's he's time barred. She keeps on saying he should have paid it in the 14 days but when he asked when he's paid the 1k in it was well outwith that timescale so they have shot themselves in the foot. So they can change the rules to suit themselves but they don't pass it on to the customer. 120 days interest on £23k is a lot of money to lose but as we speak this phonecall is costing us a fortune and she won't let him speak to her line manager just keeps putting him on hold

buglawton

The FSA should put through a rule that says, all the KEY terms of any financial agreement, especially where they involve a commitment that cannot be reversed/or something potentially to the customer's disadvantage (like deadlines, time limits), MUST be put in a BOLD TYPE SUMMARY on a top covering page (or web equivalent) of the T&Cs

Might be extended to things like car hire, insurances, air tickets too.

CJ

Now been on to Santander for an hour, don't suppose they will reimburse for the call. Most other banks have the detail about 14 days on the first page and don't make you read through the minutiae of the T&Cs, it doesn't tell you about the 14 days until after all the nonsense about Rory McElroe.
They are now admitting they didn't advise customers about the extension date to 26th June!!!!

BobQ

Headly wrote: »

Here's an interesting dilemma.

I recently opened a 2-year cash ISA with Santander with an initial deposit of £1000 (my total ISA investment so far this tax year).

A month later, I have some spare cash and want to make a further deposit into my new ISA. However, Santander say I cannot, because the terms of this particular ISA account stipulate that no further deposits may be made beyond 14 days after opening the account.

So, whilst I technically still have an ISA savings allowance of £4649 to be used in the current year, Santander won't let me put it into my new account with them, and the statutory regulations only allow you to subscribe to one new ISA in each year.

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

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

Is there anything I can do?

I doubt you can do anything without Santander's cooperation and within their rules.

Notwithstanding the quote marks this is yout fault, not Santanders and is not stealing.

CJ

Our complaint has now gone to a personal handler because they DID allow him to add money after the 14 day period because THEY didn't inform everyone who took out this ISA that they had extended the deadline to 26th June because they were backlogged. If everyone had been aware of the extension then they would have been able to add the rest of the allowance for this year.
Maybe Santander should make their web applications clearer, I was told if I'd applied by phone or in branch then I would have been told about the 14 days which implied to me that it isn't clear enough online

youdontwanttodoitlikethat

Could it be that they changed their wording on the web after you applied for your 2 year fixed ? I opened a 1 year fixed ISA in April 2012.with Santander. It said I could deposit anytime but had to transfer in within 14 days. I transferred in from an old ISA ok and made a deposit in April and again in June in October when I tried to make my final deposit they said the 14 days applied to all money. I checked their website and it does now say 14 days but it didn't say that back in April when I applied . Nothing they sent me mentioned 14 days and the welcome email contains a note saying I can set up direct debits and start paying in to make the most of the 3.5% fixed interest. Apart from going to the financial ombudsman has anyone got any advice or has the same problem?

innovate

youdontwanttodoitlikethat wrote: »

Could it be that they changed their wording on the web after you applied for your 2 year fixed ? I opened a 1 year fixed ISA in April 2012.with Santander. It said I could deposit anytime but had to transfer in within 14 days. I transferred in from an old ISA ok and made a deposit in April and again in June in October when I tried to make my final deposit they said the 14 days applied to all money. I checked their website and it does now say 14 days but it didn't say that back in April when I applied . Nothing they sent me mentioned 14 days and the welcome email contains a note saying I can set up direct debits and start paying in to make the most of the 3.5% fixed interest. Apart from going to the financial ombudsman has anyone got any advice or has the same problem?

This is confusing - - you seem to be mixing up two different offerings. Do you have a 1-year or a 2-year ISA with them?

The 1-year one (Direct ISA) was never 'fixed' in any way, it just has a bonus that lasts 12 months. And a variable interest rate, and no deposit restrictions (apart from the £5,640). Which would explain why it didn't say anything about deposits in 14 days when you applied - and it still doesn't say anything about 14 days now.

The 2-year ISA (Fixed Rate ISA) has a fixed interest rate, and deposit time restrictions (14 days etc), like literally 99% of all fixed-rate, fixed term savings accounts.

If memory serves me right, 3.3% AER applied to the Direct ISA in April this year, and the Fixed Rate ISA was 4%. Don't think there was a 3.5% Santander ISA in April 2012.

If you have the Direct ISA and not deposited more than £5,640, you can still make deposits. If they say you can't, you need to raise a formal complaint. If you have not got a satisfactory answer after 8 weeks, you can take your case to the ombudsman.

EDIT: rates applicable in April are here: http://www.santander.co.uk/csgs/StaticBS?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1223426505798&cachecontrol=immediate&ssbinary=true&maxage=3600

youdontwanttodoitlikethat

Hi thanks for posting a reply .
I do have a fixed 1 year ISA. Fixed to 1/5/2013 amounts over 2500 earn 3.5% . Opened on line in april..

I saw a notice stating 14 days re transfer deadline but there was nothing obvious re deposits and nothing on emails sent to me on opening the product. Such a significant feature should be prominent and it wasn't.

I thought they'd muddled up the current product terms with the product i took out in april but santander don't agree.