Tell us you cash ISA questions

glyderman

Dear Martin, I note in your website that you state that it is the LAW in the uk that "cash ISA providers MUST allow you access to your money, whenever you want it.". I have just found an ISA from Paragon Bank at 0.6% five year fixed and it says it will not allow any withdrawal at all till the the end of the period.  In their T&Cs for this offer it says this:

'There is no right to cancel your agreement once your account has been opened. You cannot make any withdrawals or close your account until the end of the fixed term of your account.'

Is this legal, or do they have to allow me by law to cancel the account before 5 years is up or to transfer it out in order to access my money. Even if they apply penatlties.

I look forward to any advice about this.

glyderman

Ahh just realised that it wasn't a fixed rate cash isa i was looking at on Paragon but a fixed rate savings account. Thought the rate ws to good to be true. Please ignore previous question.

Alexland

glyderman said:

Ahh just realised that it wasn't a fixed rate cash isa i was looking at on Paragon but a fixed rate savings account. Thought the rate ws to good to be true. Please ignore previous question.

Okay I can see Martin has gone back to what he was doing before.

badger09

Off topic but why would anyone be interested in a 5 year fix @ 0.6%?

eskbanker

badger09 said:

Off topic but why would anyone be interested in a 5 year fix @ 0.6%?

I thought the same but checked and it was a typo, should have been 1.6%....

SallySunshine

For the first time since ISA's began, I am going to have to cash mine in when they are mature later this year, I just cannot contemplate getting such low interest even though they are tax free. will now probably look at fixed rate savings terms for 3yrs.
Although I haven't funded any of the ISA's for a few years but have transferred them around but 1 is maturing one in June,  the other, quite a large sum in November. Still paying basic tax rate, I'm sure it will make more financial sense.
You will gather, these are cash ISA's and not S&S.

darymave

I have a nationwide 5 year fixed isa, its now entering its 3rd year, I am not allowed to add any funds to it over duration, therefore am i aloud to open a new Isa elsewhere this new tax year and beyond ?? Thanks

Miranda25

Hi everyone,
I am moving money from Nationwide to Ford Money. Nationwide rate 0.25%, Ford Money rate 1.25%. Can anybody tell me please at what point I will start to receive Ford's interest rate when money are in transit? When Ford Money requested a transfer from Nationwide or from a moment when money arrive into Ford's account? Let's say it would take 1 month to transfer money. What rate will I get that month? 
Thanks.

ColdIron

darymave said:

I have a nationwide 5 year fixed isa, its now entering its 3rd year, I am not allowed to add any funds to it over duration, therefore am i aloud to open a new Isa elsewhere this new tax year and beyond ?? Thanks

Yes. You can contribute £20,000 to ISAs each financial year. It doesn't have to be the same one, you can have a different one each year if you want

masonic

darymave said:

I have a nationwide 5 year fixed isa, its now entering its 3rd year, I am not allowed to add any funds to it over duration, therefore am i aloud to open a new Isa elsewhere this new tax year and beyond ?? Thanks

You can open and fund a new cash ISA with a new provider in each new tax year if you wish.

Miranda25 said:

Hi everyone,
I am moving money from Nationwide to Ford Money. Nationwide rate 0.25%, Ford Money rate 1.25%. Can anybody tell me please at what point I will start to receive Ford's interest rate when money are in transit? When Ford Money requested a transfer from Nationwide or from a moment when money arrive into Ford's account? Let's say it would take 1 month to transfer money. What rate will I get that month? 
Thanks.

Some providers will backdate interest to cover some or all of the transfer period, but it isn't a requirement. I don't know if Ford Money do. There might be a period where you earn no interest, although Nationwide should continue to pay interest up to the point they close the account and send the money across. Although the transfer might not be completed as quickly in the current circumstances, it will probably not take as long as a month.