What happens when more than £3,000 is paid into a mini cash ISA?

Leia_Stephens

What happens when more than £3,000 is paid into a mini cash ISA in the same tax year?

A payment has accidentally - I was sure that I set the standing order to 25.04.2006, rather than 25.04.2005 - gone from my current a/c into my ISA this morning . Will this money be automatically returned to me or might my ISA be closed because of an "unauthorised payment" .

Leia

Al_Mac

The ISA provider "should" bounce it.:beer:

robnye

yes i think they will bounce the payment.
if you tried to pay it in over the counter, then their system will highlight the fact and the person on the counter would refuse the payment

Leia_Stephens

Thank you, both .

I will just wait until my £150 is returned then and not worry about it :cool: .

Leia

deemy2004

Why not get in touch with the ISA provider to tell them what happened and where yuo stand... Like the others I think it will be rejected... say 90% probability... 10% its void..... and turned into something else savings account.

Paul_Varjak

Have you used up your mini-cash ISA allowance this year? If not, you have probably lost your allowance for this year, in effect, if you take the money out.

If this was in addition to your full mini-cash ISA allowance I do not think it too much of a problem putting too much money into an existing ISA, as long as you tell them immediately! If you don't tell them it may be considered you are committing fraud and they may choose not to do business with you!

The problems really arise if you open up two 'incompatible' ISAs in one year (eg two mini ISAs of the same type, both a Maxi and a Mini-ISA or two Maxi-ISAs). In that instance, the second ISA is invalid and you have to tell your provider. You cannot just close one of the ISAs!

david78

Leia,

I must agree with deemy2004

deemy2004 wrote:

Why not get in touch with the ISA provider to tell them what happened and where yuo stand.

It might not be returned automatically. The bank may keep it in a separate holding account (earning no/little interest). Also don't forget you need to make sure your standing order doesn't make another payment next month.

Good luck.

dunstonh

I have known it take 18 months to be spotted. Then you get a nice letter from the inland revenue.

Leia_Stephens

Thank you all :beer: .

I have just phoned my ISA provider - N S & I : I explained my mistake and have been told that my £150 will be re-credited to me . I also reinforced that I did know that I wasn't supposed to pay in more than £3,000 in any one tax year .

My £3,000 allowance went in earlier in April - by standing order - but I didn't want to have to cancel my SO so I just made it in the future.

Unfortunately, I mistyped the date for 25.4.05 rather than 25.4.06 .

Leia