Is it too late to close my ISA?

gillykms

Hello all I need some advice.

I decided to re-activate my ISA account in the Ulster Bank (part of RSB) about 6 weeks ago. I went into the bank, filled in a form that said I wanted £10 transferred over from my current account to re-activate it again and the lady said it wouldn't take long before I could start making deposits. I didn't receive any communication to say that my ISA had started up again, and the £10 never transferred from my current account. I then noticed about 2 weeks ago on my online banking that it was possible to now make deposits. Yesterday I received a general letter (which my mum also received on the same day) about changes to their interest rates & that the rate is 0.5%.

After some looking online I found that as I recently opened a new FlexDirect account with Nationwide I am eligible to apply for their FlexExclusive ISA which offers 2.25% interest. However this is for opening a brand new ISA and transfers are not permitted.

The question is if Ulster Bank didn't even tell me my ISA had been re-activated and no money has gone into it yet is it possible to just close this and open the Nationwide one instead? I understand there is a 14-day cooling off period from when the account is opened if you change your mind however considering this was a 'reactivation' as opposed to a brand new opening I'm not sure it applies. I called the Ulster Bank today and the girl could only tell me when my ISA was first opened way back in 2004 not when it was reactivated this time round.

Any advice would be appreciated as I would much rather get the 2.25% than the 0.5%! Plus I'm considering leaving the Ulster Bank altogether as they really don't offer anything good to their customers even if you've been with them for over 25 years!

Archi_Bald

Since it seems you have paid nothing into your Ulster ISA since April 6 2013, you can just go ahead and start the Nationwide ISA. You do not have to close the Ulster ISA.

However, you might want to have that ISA transferred by a provider who pays better interest. Check the first post in https://forums.moneysavingexpert.com/discussion/401374 for the best available deals. Make sure you use the formal ISA transfer process - do not move the money yourself.

William_Thomas

if you haven't yet paid into your ISA account at all in this financial year then you'll be fine to open a new ISA elsewhere. it would be an idea to discuss transferring your ISA over as they may be able to offer you a higher interest rate. transferring the account over shouldn't be complicated at all as the bank will take care of it for you once decided what to do.