ISA question

InMyDreams

now I'm a bit confused, lol!

RobLondon1984 wrote: »

In the bank I deposit the ISA, I think that I am restricted to one ISA a year. I think "an" and "the" means the same thing I would of though?

By 'the' ISA I was refering to the ISA you have already opened, trying to add to that. By 'an' ISA, I was wondering if you meant you had tried to open a new one to depost the rest of your £3k allowance in.

RobLondon1984 wrote: »

This bit, I am not sure what you mean

"I believe you could open one, but you wouldn't be able to deposit any new money into it until April 6th. Could this be the problem?"

What I mean is that as far as I understand, you can *open* a second ISA in the same tax year, but you can't deposit any new money in it, even if you haven't yet used up your whole allowance. You could though transfer money from previous years' ISA's into another one though, or just wait until April 6th to deposit into it. I was wondering if that is what you'd done which would explain why you'd been told you couldn't put money into it. If that's not the case though, if does rather look like your ISA is a bond (if you opened it with only £1k and done nothing else since) which is why you can't add to it.

RobLondon1984 wrote: »

I think your just saying I can deposit up to 3k on April 6th this year. I think its a fixed rate, will have to check, meaning I just need to wait till August

Fixed rate isn't the same as fixed term. You don't need to wait until August to deposit anything. If your term was fixed though, (eg in a bond) then you will have to wait until August (or however long the term was) to see your money or the interest. Nothing stopping you putting more money in another ISA before then though, either with the same bank or a different one.

debjay

Hi
I deposited 3k in a N S and I Direct ISA in August 2006. Will they contact me in April with a balance plus interest and when should I withdraw it to not lose any interest?

masonic

debjay wrote: »

I deposited 3k in a N S and I Direct ISA in August 2006. Will they contact me in April with a balance plus interest and when should I withdraw it to not lose any interest?

Not sure what you are really asking, but there is no interest to be lost by not withdrawing. If you are happy with the rate and don't need the money, leave it there.

RobLondon1984

InMyDreams wrote: »

now I'm a bit confused, lol!


By 'the' ISA I was refering to the ISA you have already opened, trying to add to that. By 'an' ISA, I was wondering if you meant you had tried to open a new one to depost the rest of your £3k allowance in.

What I mean is that as far as I understand, you can *open* a second ISA in the same tax year, but you can't deposit any new money in it, even if you haven't yet used up your whole allowance. You could though transfer money from previous years' ISA's into another one though, or just wait until April 6th to deposit into it. I was wondering if that is what you'd done which would explain why you'd been told you couldn't put money into it. If that's not the case though, if does rather look like your ISA is a bond (if you opened it with only £1k and done nothing else since) which is why you can't add to it.



Fixed rate isn't the same as fixed term. You don't need to wait until August to deposit anything. If your term was fixed though, (eg in a bond) then you will have to wait until August (or however long the term was) to see your money or the interest. Nothing stopping you putting more money in another ISA before then though, either with the same bank or a different one.

I checked and its a one year fixed rate ISA, so have to wait till August to deposit a maximum of 3k in. I am sure you can't put more money in another ISA with the same or different BANK until after a year from when I opened the ISA.

InMyDreams

RobLondon1984 wrote: »

I checked and its a one year fixed rate ISA, so have to wait till August to deposit a maximum of 3k in. I am sure you can't put more money in another ISA with the same or different BANK until after a year from when I opened the ISA.

Just had another thought (because I still can't think of a fixed rate ISA that will make you wait one calendar year before adding to it or any other). They can't possibly stop you using your new ISA allowance that as of today you are entitled to. Where did you check? In the t&c it may say something like “The maximum Subscription You may make to Your Account in any one Year must not exceed the annual limit specified by the Regulations.”

Note the capitalization of the word Year. Check the definition of "Year" in your t&c and it may actually refer to tax year. In other words, although August is less than 12 months away, we are now in a new year so you can start subscribing again. If not, there's no reason you can't open another ISA with a different bank if your current bank is being awkward.

Out of interest (because I still can't get my head around these odd rules) who is this account with? I'm intrigued!

RobLondon1984

InMyDreams wrote: »

Just had another thought (because I still can't think of a fixed rate ISA that will make you wait one calendar year before adding to it or any other). They can't possibly stop you using your new ISA allowance that as of today you are entitled to. Where did you check? In the t&c it may say something like “The maximum Subscription You may make to Your Account in any one Year must not exceed the annual limit specified by the Regulations.”

Note the capitalization of the word Year. Check the definition of "Year" in your t&c and it may actually refer to tax year. In other words, although August is less than 12 months away, we are now in a new year so you can start subscribing again. If not, there's no reason you can't open another ISA with a different bank if your current bank is being awkward.

Out of interest (because I still can't get my head around these odd rules) who is this account with? I'm intrigued!

You might be right, I am just assuming I have to wait a year after I opened the fixed rate ISA.The account is with Yorkshire, and the interest is 5.25%.

Thanks for the reply anyway