Close Fixed Rate ISA within 14 day cancellation period

supermum1988

Soooooooo I'm a complete dumb !!! when it comes to this. I have a an Easy Cash ISA with Santander for years now and just the other day I decided to upgrade to a fixed rate one.

I completely read over the 'No deposits after May 1st 2015' part and I'm wanting to cancel I as I really wanted something I could make regular payments to throughout the year. I know I know, fine print. Always read the fine print!!

Anyway, has anyone ever closed an ISA account within the cancellation period? If so, how does it work and how do I transfer the funds already paid in to a savings or current account? Will they allow me to revert back to the original ISA obviously taking into account the contributions allowance?

colsten

They'll just refund your deposits into the fixed rate ISA from where you made the deposits. You might have to wait a few days for this to happen.

Any previous instant access ISA has nothing to do with it.

Please stop focussing on cash ISAs. With the amount of money that seems to be involved, you can do a lot better with interest paying current accounts at, for example, TSB and Tescos. https://forums.moneysavingexpert.com/discussion/5202385

Eco_Miser

I don't see a problem, given that you can start a new ISA, of any type, on April 6th.

So leave your existing savings in the fixed rate ISA, and open a new easy access ISA in April.
DO NOT PAY INTO THE FIXED RATE ISA AFTER APRIL 6TH.
Although maxing out a Santander 123 and other current accounts like TSB and Lloyds will pay more.

supermum1988

colsten wrote: »

They'll just refund your deposits into the fixed rate ISA from where you made the deposits. You might have to wait a few days for this to happen.

Any previous instant access ISA has nothing to do with it.

Please stop focussing on cash ISAs. With the amount of money that seems to be involved, you can do a lot better with interest paying current accounts at, for example, TSB and Tescos. https://forums.moneysavingexpert.com/discussion/5202385

That is all very well and good, and trust me, I appreciate your advice. I would open another current account if I could but as it stands I have a failed IVA and have been rejected current accounts.

Keep_pedalling

supermum1988 wrote: »

That is all very well and good, and trust me, I appreciate your advice. I would open another current account if I could but as it stands I have a failed IVA and have been rejected current accounts.

In that case consider sticking some of your cash into a P2P company like Ratesetter.

Archi_Bald

supermum1988, if your signature is anything to go by, you shouldn't be saving anything at all but instead you should be paying off your debts.

PeacefulWaters

Keep_pedalling wrote: »

In that case consider sticking some of your cash into a P2P company like Ratesetter.

That's a bit of a leap up the risk to capital scale.

Keep_pedalling

PeacefulWaters wrote: »

That's a bit of a leap up the risk to capital scale.

I would say a tiny leap, Ratesetter does not have the £85k government back-up but does have a proven provision fund, and if you don't want to risk a long term investment you can still get 3% on monthly terms.

supermum1988

Archi_Bald wrote: »

supermum1988, if your signature is anything to go by, you shouldn't be saving anything at all but instead you should be paying off your debts.

Who says I'm not paying my debts? I am working extra shifts to put this money away. Its a £10 pm, not exactly a massive amount.

PeacefulWaters

supermum1988 wrote: »

Who says I'm not paying my debts? I am working extra shifts to put this money away. Its a £10 pm, not exactly a massive amount.

I'm a big fan of the contingency fund.

But it's highly likely that the interest saved by reducing debt will be greater than the interest earned by saving.

Keep_pedalling wrote: »

I would say a tiny leap, Ratesetter does not have the £85k government back-up but does have a proven provision fund, and if you don't want to risk a long term investment you can still get 3% on monthly terms.

I prefer 5% with instant terms and FSCS thanks.

masonic

Keep_pedalling wrote: »

I would say a tiny leap, Ratesetter does not have the £85k government back-up but does have a proven provision fund, and if you don't want to risk a long term investment you can still get 3% on monthly terms.

So how well did it perform during the last financial crisis? "It hasn't been around that long", you say? The provision fund is hardly proven.