Bad idea to put 14/15 allowance into FRISA if later I want to use new NISA limit?

JoeA81

Is it a bad idea to put my £5940 14/15 allowance into a Virgin 1Y 2% FRISA if I want to take advantage of the new 15k allowance in July?

I opened the 1 year Virgin FRISA 3 weeks ago, and transferred my previous years ISAs into it. In the T&Cs it said that all deposits had to be made within 30 days of the ISA being opened, so I was planning to put my current allowance of £5940 into it this week.

Then I realised that doing this would mean I would not be able to deposit my new additional allowance of £9060 in July, as this FRISA would be closed to new deposits.

Would I be able to put my new additional £9060 allowance into a different new ISA come July? Or would I be better off opening a new non-fixed rate ISA now, which I could then top up with the new money in July?

Thanks.

badger09

JoeA81 wrote: »

Is it a bad idea to put my £5940 14/15 allowance into a Virgin 1Y 2% FRISA if I want to take advantage of the new 15k allowance in July?

I opened the 1 year Virgin FRISA 3 weeks ago, and transferred my previous years ISAs into it. In the T&Cs it said that all deposits had to be made within 30 days of the ISA being opened, so I was planning to put my current allowance of £5940 into it this week.

Then I realised that doing this would mean I would not be able to deposit my new additional allowance of £9060 in July, as this FRISA would be closed to new deposits.

Would I be able to put my new additional £9060 allowance into a different new ISA come July? Or would I be better off opening a new non-fixed rate ISA now, which I could then top up with the new money in July?

Thanks.

Some providers of Fixed Rate ISAs (Skipton, Halifax, Santander) have already announced that they have extended the deadline for deposits, to accommodate the new allowance from 1 July.

I can't see a FR ISA on Virgin's website now -has it been withdrawn? Anyway you'd need to check the T&C. If they do not allow deposits after 30 days and you deposit money now, you won't be able to use the additional new allowance in any other cash ISA this tax year.

JoeA81

Yeah I think it was a special offer that has now been withdrawn:
https://forums.moneysavingexpert.com/discussion/4916125
Its a 1 Yr Virgin Fixed Rate E-ISA Issue 65.

I'll see if I can check with them, maybe they have changed their rules too!

JoeA81

Found it:
http://uk.virginmoney.com/savings/pdf/Virgin_Fixed_Rate_Cash_E_ISA_Issue_65-key_product_info.pdf

Looks like I'm going to have to phone them to check.

k18dan

EDIT - Found what I needed

JoeA81

If anyone is interested, after phoning them the answer is no. Virgin do not allow deposits into fixed rate ISAs after 30 days, and they have not extended the deadline in light of the new NISA limits. Time to find another ISA!

P.S. k18dan - Why did you delete your question? If you found the answer then maybe someone else would have found it useful to know too?

MoneySavingUser

http://www.moneysavingexpert.com/news/banking/2014/03/isa-allowance-to-rise-to-15000

Any Isas opened between 6 April and 30 June will automatically become a NISA, with a higher limit. From 1 July, you'll be able to add further money up to the new £15,000 limit.

http://www.moneysavingexpert.com/savings/best-cash-isa#nisa

Q. If I open a cash ISA now, what happens in July?
A. You'll then be able to top it up to the full £15,000 if you choose, and it'll all count as your 2014/15 allowance. See full NISA FAQs.

These 2 articles seem to say that you can topup any ISA - though to be fair none of them specifically say it applies to Fixed rate ISAs

Archi_Bald

MoneySavingUser wrote: »

These 2 articles seem to say that you can topup any ISA - though to be fair none of them specifically say it applies to Fixed rate ISAs

You can top up any ISA that the ISA provider will allow to be topped up. They are not forced to allow the max.

A fair number have already announced that they will allow top-ups but you need to check directly with the provider to get reliable information.

Newly_retired

I suspect more will allow the additional funds in July.