Have I messed up?

frivolous_fay

I may have made an error which will cost me a few quid in interest.... hope someone could kindly cast an eye over the story and let me know!

I successfully opened an Abbey Direct ISA today, and put in place arrangements to transfer my existing A&L ISA into the new account. All good... BUT, the advisor I spoke to mentioned in passing that if I had paid into the account this financial year, I wouldn't have been able to transfer it. I didn't pay much attention at the time, but having thought it through, I realise this may stymie my partner. (Whose finances I more or less handle )

Having looked into ISAs in preparation for the end of our introductory period (30th April) I decided Abbey were the best for us. However, you get a slightly lower rate of interest if your account has less than 9k in it. I made the decision to pay the 3k we had free into my partner's account, as this would take it over the 9k threshold. I'm pretty certain I ran this past an Abbey advisor and they didn't mention it being a problem.

That's the background. Is my partner stuck with A&L for another year, now? It's not as if he plans to contribute any more this year to his account, so can't it simply be transferred...?

Kazza242

Just so I understand this correctly: Your partner has contributed to his A&L ISA after April 5th 2007? In order to make the balance above £9K, so that you would receive the higher 5.75% rate from Abbey's Direct ISA after it has been transferred in.

If this is the case then your partner can transfer his £9K A&L ISA to Abbey. This is allowed by Inland Revenue ISA rules, so the Abbey advisor has advised you incorrectly. The fact that your partner has contributed to a new ISA this tax year does not affect your transfer.

frivolous_fay

That's right, we topped up his ISA this financial year as we had enough for one ISA, and it made sense to put it in his as he has less cash in his, and mine was already over the Abbey interest threshold. I know my ISA is unaffected, but I was worried about whether his was stuck, having paid into it this year.

We don't make distinctions about whose money it is, it'll all be going towards our house when we finally find one

thumshie

I don't want to argue with Kazza , but the advisor may be right..
Looked at the web site
http://www.abbey.co.uk/csgs/Satellite?c=GSProducto&cid=1157695655413&pagename=Abbey%2FGSProducto%2FGS_InfProducto
and under the bullit points:

Don't consider it if...
You’ve used your ISA allowance for this tax year
You want to pay into a maxi ISA in this tax year
You may want to manage your money by using an Abbey branch

I think abbey now require you to deposit atleast £1 then you can transfer existing isa's over. If you've used your isa allowance, you can't make the £1 initial deposit......Did you have to make an additional deposit on your account today other than the transfer?

frivolous_fay

Drat, and double drat!

Anyone know an alternative with a reasonable rate?

Will there be any repercussions for me if I don't pay in £1+ quickly to my new account?

thumshie

If they didn't ask for it i assume the transfer counts as the initial deposit. in which case kazza would -again - be right!!

I may be reading the 'terms' wrong. This isn't from experience, and and not trying to worry, just give a reason how the advisor might be right/their thinking,which may be wrong..

If They do only allow transfer of previous years on the condition you start a new year with them from scratch, they'd be the first account with this requirement.

Edit:
It just seems weird that the web site mentions don't consider if you've used your isa allowance. I know of no other bank thats says it in such a way. They may just be refering to 'don't try and open two accounts in a year'...Or is it a new rule brought in since the new tax year..

Best thing, get your boyfriend to try it and see what they say.

jem16

thumshie wrote: »

I don't want to argue with Kazza , but the advisor may be right..
Looked at the web site
http://www.abbey.co.uk/csgs/Satellite?c=GSProducto&cid=1157695655413&pagename=Abbey%2FGSProducto%2FGS_InfProducto
and under the bullit points:


I think abbey now require you to deposit atleast £1 then you can transfer existing isa's over. If you've used your isa allowance, you can't make the £1 initial deposit......Did you have to make an additional deposit on your account today other than the transfer?

I have transferred mine from Halifax to Abbey. It did not have this year's allowance in it. However I did not open it with any funds and cannot as I have subscribed to a Maxi ISA.

I also transferred my son's from Halifax to Abbey which did contain this year's full £3k allowance already added to the Halifax account.

It was handed in on 10th April to my local branch. They accepted it. To date I have received nothing but I haven't had it returned yet either. However I'm not surprised as Abbey seems to be slow at setting things up.

To my mind the bullet points are not aimed at those transferring but those wishing to simply open an ISA.

thumshie

fay - As jem16 has done exactly what your after, I'd guess it's just badly worded, espeically as they never got any other deposit off you today.. I also mentioned that they may require a deposit because the 'read the legal details' never mentioned initial deposit by transfer... YBS however state that by transfer, no initial deposit is required.. Just semantics i know, but i wouldn't be suprised if one day one of the providers does this 'half way house' option between allowing transfers and not allowing transfers..