May have made an error - please help!

nicful1985

Hi,

Last year I was saving in an easy access cash ISA with Virgin Money and I received emails stating that the interest rate would be dropping at the end of the year.

So as usual I set off finding the best ISA rate via Moneysavingexpert.com and have just applied to the easy access Santander ISA at 1.6%.

However, I started filling out the ISA transfer form and logged into my Virgin account to double check details and it says the interest rate is still 2% gross.

Obviously I would prefer to keep my savings in the higher 2% Virgin account, but as I have now opened an ISA for 2014/2015 with Santander (no money has been put in this account yet) am I allowed to put new savings into the Virgin account or must all my new savings this year now go into the Santander account?

I hope that makes sense? Any advice would be welcome, thanks.

Archi_Bald

No panic, nothing lost.

If you haven't yet deposited any money into Santander, you can completely ignore the Santander ISA, and continue to make you payments into your Virgin ISA. The Virgin ISA will become your 2014-15 ISA.

If you find a better ISA before the tax year is out, and that ISA allows transfers in, you can ask the provider of that other ISA to transfer your Virgin ISA. Once that transfer has been completed, you can make further deposits into the ISA with the new provider, up to your remaining allowance for the year.

nicful1985

That's good to know, thanks!

ally18

Could I just ask, do you think they have just made a mistake on the rate they are quoting?

The reason I say this is because my Halifax ISA is still saying 1.95% gross today when they sent me paperwork to say it would drop to their basic rate. I assumed it was an online system error and they had not updated the website yet.

hgt

nicful1985 wrote: »

Hi,
However, I started filling out the ISA transfer form and logged into my Virgin account to double check details and it says the interest rate is still 2% gross.

Niceful1985 - I suspect you may have the same ISA as myself at Virgin, if so I suggest you check the e-mail they sent you about the rate dropping. if it's the same as mine, then the rate is going to drop to 1.5% on 25th April, however it is still earning 2% right at the moment.

So maybe you might want a new home for your savings after all?