Closed issue ISA - Newcastle building society

cg14

Hi,

I set up an ISA with Newcastle building society a few months ago and had invested some money into it a couple of times. I then went to transfer some money last month and it was rejected. I was prompted to phone them which I did and was told that the account was now a closed issue account. I asked what that meant and was told that I couldn't transfer any additional funds to the account but that I would still earn interest on what I had in my account.

It's in the terms and conditions that this can change at any time but they're denying me from earning any more tax free interest on my savings. Has anyone come across this before?

Thanks in advance.

taylornj

cg14 wrote: »

Hi,

I set up an ISA with Newcastle building society a few months ago and had invested some money into it a couple of times. I then went to transfer some money last month and it was rejected. I was prompted to phone them which I did and was told that the account was now a closed issue account. I asked what that meant and was told that I couldn't transfer any additional funds to the account but that I would still earn interest on what I had in my account.

It's in the terms and conditions that this can change at any time but they're denying me from earning any more tax free interest on my savings. Has anyone come across this before?

Thanks in advance.

The same happend with Skipton BS see this.

https://forums.moneysavingexpert.com/discussion/5052311

This might be related to the Cash ISA allowing the additional upto £15,000 from 1st July for a short period.

colsten

cg14 wrote: »

..... they're denying me from earning any more tax free interest on my savings. .

Have you looked into how much interest you could be earning in current accounts?

cg14

Thanks for the link taylornj.

I've started looking at current accounts as I know there are a few that offer great rates. I'll do some more research.

Thanks.

lalman

I have an account with Newcastle BS - same account... my standing order leaves on the 6th of September. I will let you know whether it happens to me too.. I hope not!

thenudeone

You haven't lost the opportunity to put more in an ISA (should you want to).

Unlike most other ISA providers, Newcastle BS allows you to split your ISA allowance across more than one account (see http://www.newcastle.co.uk/maximisa/), so if you are desperate to use this year's allowance you can still put any unused allowance in to a different Newcastle ISA (just before the tax year ends, if you want). Once the tax year ends you can transfer this extra amount to any other ISA.

10_66

cg14 wrote: »

Hi,

I set up an ISA with Newcastle building society a few months ago and had invested some money into it a couple of times. I then went to transfer some money last month and it was rejected. I was prompted to phone them which I did and was told that the account was now a closed issue account. I asked what that meant and was told that I couldn't transfer any additional funds to the account but that I would still earn interest on what I had in my account...

Which product name and issue is it? I opened Newcastle Big Home Saver ISA back in April (regular saver, rate is 3% including the bonus, which I'm drip feeding into from another account). I assume it's issue one as I think they're now on issue 2 which is a lower rate. I've been paying in each month since opening this.


Edit: I spoke to Newcastle BS today (5 Sep), and as far as the Big Home Saver ISA goes, you can still make payments into it if already an existing account.




...

lalman

Thanks for the heads up 10_66 - I was worried there. I opened my account at a similar time as you and rang them yesterday too - they didn't say anything about not depositing money....

I do have a question, after March 15 - can we continue to deposit money? will the ISA allowance roll over and we can just keep adding to it?

There doesn't seem to be any stipulations that we need to 'actually buy' a house with this money...

10_66

lalman wrote: »

...I do have a question, after March 15 - can we continue to deposit money? will the ISA allowance roll over and we can just keep adding to it?

There doesn't seem to be any stipulations that we need to 'actually buy' a house with this money...

You don't have to take out a mortgage with them, they just offer you an additional cash reward if you've saved a certain amount and then take out a mortgage with them.

I was under the impression that you could continue to subscribe to this account in the new financial year (ie from 6 April 2015). However, just having a quick look at the details it doesn't say anything about that, just that you can't add more than the maximum ISA limit (£15K) in the current tax year.