ISA - need clarification on something bank said

System

Number 1) I completed the RECEIVING forms asking them to contact the SENDING bank

thenudeone

In that case there is nothing in the ISA regulations which prevents you using up any remaining allowance in the new ISA. The member of staff was mistaken.

lynneedwards

Bank staff mistaken? That would never happen lol! Not getting at bank staff, but I do wish they would get more training before being unleashed on the public.

jamesd

moneyunwise wrote: »

Nationwide have told me that I should not have added funds to my NISA as I am only allowed to deposit funds in one ISA per year. They told me that the Inland Revenue will probably contact me about it.

They are wrong on both counts.

You can pay money into an unlimited number of ISAs in the same tax year provided that you meet one of these two conditions:

1. One is cash and the other is S&S.
2. All current year money for that type of ISA is transferred from the original place to the new place, with the transfer happening before the new money is paid in to the new account.

For practical reasons it's unlikely that you could validly pay into more than about fifteen different cash ISAs in the same tax year. Fewer S&S because the transfer time thresholds are longer for them.

I don't yet know of any groups holding competitions to see who can pay into the most different cash ISAs in one year yet but there are people who try to travel on the whole of a public transport systems so I'm sure that some group will try it someday.

moneyunwise wrote: »

Incidentally, Nationwide told me this when I popped in to ask them about my deposit limits in my NISA. They told me that I could not deposit any more funds. If they are wrong, how much could I deposit?

Not all accounts have had their terms changed to allow the new limit, so they could be right. ISA managers aren't required to make the change. That restriction would only apply to their account and you'd be perfectly free to transfer the current year money to any other account and add to that, if it permitted the full allowance to be used.

moneyunwise wrote: »

Slightly miffed on this, I read so much documentation before transferring and thought I understood it.

You did. You were given incorrect information by Nationwide.