LBS online bonus ISA

Ash1982

I'm thinking about applying for the top easy access ISA that is taking transfers but I'm slightly confused. On the T&C is says you have to deposit £1 to open the account and on the application page it forces you to choose the tax year 13/14. Does this mean I have to desposit £1 into this years ISA using my new allowance and I can't just open the account by transfering my £5640 allowance from last year whilst retaining my right to open another ISA to contribute to later in the tax year?

Basically, I want to transfer my 12/13 ISA to a top rate without starting to use my 13/14 allowance (on the basis that the top rate might rise later in the year when I have more funds available)

xylophone

You need to complete your new provider's transfer form?

Ash1982

Thanks but if I have to put at least £1 in new money into the 13/14 ISA before the account is open and ready for transfers then that doesnt solve the problem!

xylophone

Then open the Lloyds account with £1 from this year's allowance, transfer over the old isa using the transfer form, continue to subscribe what you can to this year's allowance and arrange a transfer of the whole ( or the whole of this year's subscriptions) if you find something better?

But why do you want the Lloyds ISA? The Leeds is better?

http://www.leedsbuildingsociety.co.uk/savings/online-bonus-isa.html

j0nathon2

It is a condition you subscribe to this year's ISA with it.

However, there appears to be no condition on transfers out, so subject to the better rate you find allowing transfers in you could transfer this year's subscriptions (your £1) should you find a better ISA and leave the previous year's subscriptions with Leeds.

LisaLJ

j0nathon2 wrote: »

It is a condition you subscribe to this year's ISA with it.

I thought that and currently have the forms and cheque waiting to be posted off to them but in the meantime I've received this email to an enquiry I made the other day: -

I can confirm that the initial deposit must be made by cheque or ISA transfer, therefore as you are transferring a previous ISA we do not require a personal cheque.

If you have any further queries please do not hesitate to reply to this email or alternatively you can contact our Call Centre on 0113 225 7777. Lines are open 8am-8pm every day.

Seems like I will have to phone them to make sure!

badger09

xylophone wrote: »

Then open the Lloyds account with £1 from this year's allowance, transfer over the old isa using the transfer form, continue to subscribe what you can to this year's allowance and arrange a transfer of the whole ( or the whole of this year's subscriptions) if you find something better?

But why do you want the Lloyds ISA? The Leeds is better?

http://www.leedsbuildingsociety.co.uk/savings/online-bonus-isa.html

OP didn't mention Lloyds (but you did )

j0nathon2 wrote: »

It is a condition you subscribe to this year's ISA with it.

No it is not. What makes you think that?

j0nathon2

badger09 wrote: »

No it is not. What makes you think that?

Two things:

"The minimum subscription and operating balance is £1". I interpreted that as I must subscribe new money, not just transfer.

Also, when the application was completed, sending a personal cheque was a mandatory action.

vickssinex

j0nathon2 wrote: »

Also, when the application was completed, sending a personal cheque was a mandatory action.

When I got to this screen I phoned them to see if I could send in a transfer form instead of a personal cheque. I don't have a cheque book with my current account so this option wouldn't suit me. I was assured that they would accept this.

I have to say though the Leeds website doesn't really make this clear.

j0nathon2

Yes, their website has a mix of general ISA information and specific product information.

On the same page you have a message that says "you can continue to subscribe in future years" with a link to T&C for the product which says "you cannot". Not particularly helpful, especially considering the application form, also when printed, says you wish to subscribe to 2013/2014 and continue subscribing in future years, even though it's not an option.

I am subscribing this year's full amount along with four previous ISAs to them anyway, but it sounds like the OP should be fine doing what they originally wanted, just transferring in.

badger09

j0nathon2 wrote: »

Two things:

"The minimum subscription and operating balance is £1". I interpreted that as I must subscribe new money, not just transfer.

Also, when the application was completed, sending a personal cheque was a mandatory action.

'Minimum subscription' - If an ISA accepts transfers in, this can be met by one or more transfers in from another provider.

If you are funding with new money - i.e. not a transfer from another provider, then they are insisting on a personal cheque, rather than online bank payment.

But as there is no requirement to fund with new money, there is no requirement for a personal cheque.