Stopped accepting payments?

psonger

My Skipton BS 5 year ISA seems to have stopped accepting payments. I have written to them to ask why but there is an odd term in the t and c that I dont quite understand.

"You can make payments into this account until it becomes a closed issue which could happen at any time and without notice."

If this has happened how do I continue my long term savings plan. Am I locked out of ISAs for the rest of the tax year!

Confused and worried.

Archi_Bald

It sounds like you have a fixed term account that only allows payments for a short period of time. This is quite normal.

If you have made payments into this ISA since April 6 [STRIKE]2015[/STRIKE] 2014, the only other ISA that you can make further deposits into this financial year is an S&S ISA. Most of these pay little to no interest for cash holdings, and most will charge you for transferring cash out (whether into a cash ISA or elsewhere). It is an option if you are really desperate to use your ISA allowance for the year and want to stay in cash.

Otherwise you can earn a lot more interest in various current accounts - TSB, LLoyds, Santander, Tesco - so you might actually benefit from signing up to a cash ISA that is now closed.

eskbanker

Archi_Bald wrote: »

If you have made payments into this ISA since April 6 2015

....then you are Doctor Who and I'd like a lift in your Tardis please!

Archi_Bald

Just checking whether anyone reads my posts, lol

Thanks for picking me up on this, have modified my post

eskbanker

Damn, I was hoping for some inside info into what next year's cash ISA rates are going to be like!

psonger

Thanks guys, I guess its my good ladies turn to open a new ISA. Hopefully that one will last a bit longer!

Seems a bit shoddy to sell a high rate of interest on a fixed term then get cold feet over the interest rate and close further investments but I suppose thats banking for you! It will still get the interest for the investments so far.

Archi_Bald

It isn't shoddy, it is good management of liabilities. You wouldn't expect a bank to overstretch itself and borrow money at rates that they cannot lend the money out at, would you?

If you have cash to put into a cash ISA now, you should consider alternatives until end of March. All ISAs pay dire interest, whilst you can get up to 5% in current accounts. Your wife's ISA allowance will last all year. Don't just blindly follow the cash ISA mantra.

http://www.moneysavingexpert.com/savings/savings-loophole