Dot ComUnity Credit Union - ISA

gwapenut

You're right - it combines the ISA and the basic share account.


This must surely mean it needs to be reissued?

By the way, I tried depositing the cheque at Nationwide, Santander and Lloyds and no one would touch it. Nationwide said that because I'd already opened an ISA this year, then I'd need to deposit it with my current ISA provider due to rules stating only one new ISA per year. Understandable, and they were aware it would not count towards my limit. Only problem is my new ISA is a regular saver so they'll never accept it ....

colsten

Yep, my FSCS cheque is my ISA plus £5, too.

They probably expect the receiving ISA provider to split the amount into ISA and non-ISA. This is probably spelt out in the important notes on the back of the letter (that they forgot to print) we are urged to read before banking the cheque.

Boy, what a mess.

gwapenut

Have spoken to the FSCS and they say to pay the whole cheque into a bank account and then to fund the ISA with a personal cheque for the correct amount, using the ISA statement as evidence.

He was quite emphatic about this, and not surprised that the amounts had been combined

pafpcg

And so is mine!
Entering all the numbers and dates into a spreadsheet with interest at 3.0%, then adding the amount in the Basic Share account gives the amount of the FSCS cheque to within a penny for both me and my partner.

pafpcg

gwapenut wrote: »

Nationwide said that because I'd already opened an ISA this year, then I'd need to deposit it with my current ISA provider due to rules stating only one new ISA per year. Understandable, and they were aware it would not count towards my limit. Only problem is my new ISA is a regular saver so they'll never accept it ....

Well, that's NOT what my local Nationwide branch, in consultation with the ISA team in Nationwide head office, have said. In fact, I dealt with the same helpful person when I opened my first Flexclusive ISA with them by transferring in an ISA from another building society just yesterday!

I expected that the EBCU/FSCS cheque would be credited to yesterday's new ISA, but they created a second account. So now I should have two accounts in parallel, both with funds entirely from transfers-in. And my partner will have the same.

Assuming, of course, it all gets processed and the funds are credited as promised..............

MARTYM8`

Sounds like a right shambles as ever.

I was planning another route but I think I will use the Nationwide Flexclusive ISA route now - now we have a precedent and their head office are aware of the issue.

I haven't contributed to a cash ISA for 2015-16 yet but my DCU funds exceed the £15k limit.

darren72

I've spoken to FSCS who inform me to just bank the cheque (in a regular bank account) then contact a new Cash ISA provider afterwards.

The cheque issued isn't just for the ISA though is it - so the cheque cannot be used directly for the ISA (as it includes the £5 refund of the 'share' account balance too).

Is this what others are being told ?

MARTYM8`

darren72 wrote: »

I've spoken to FSCS who inform me to just bank the cheque (in a regular bank account) then contact a new Cash ISA provider afterwards.

The cheque issued isn't just for the ISA though is it - so the cheque cannot be used directly for the ISA (as it includes the £5 refund of the 'share' account balance too).

Is this what others are being told ?

Fine – but if you bank the cheque how do you prove that you are using the same funds later to transfer an ISA your new provider?

I assumed rather than getting cheques we would get a certificate which would be presented to our new provider and they would presumably seek the funds from the FSCS. I am not exactly keen on just banking a cheque for potentially tens of thousands of pounds – no doubt certain keen fraud/money laundering departments in some banks might start asking questions.

I intend to use NW - and try and use the cheque I receive rather than a separate cheque.

mt77

Not asked FSCS yet, but it makes perfect sense. I was wandering about the same question too.

darren72

MARTYM8` wrote: »

I intend to use NW - and try and use the cheque I receive rather than a separate cheque.

I understand that but the cheque also includes the non-ISA component from your £5 share account.