Lloyds Bank ISA - Dormant?

Marvqn1

I have an ISA with Lloyds Bank.

I was wondering, does the account become dormant after a certain period of time if I haven't transfered any money? I guess that receiving interest annually doesn't count towards money being transfered.

eskbanker

I don't believe that savings accounts (including ISAs) are typically treated the same as current accounts for dormancy purposes as they're inherently intended for accumulation rather than regular use.

It's often necessary to reactivate a cash ISA if you're looking to pay new money in after multiple tax years of not doing so, but to be honest if it's an old product then chances are you'd be better either opening a new one to transfer into, or (preferably) getting higher interest rates in other account types, see http://www.moneysavingexpert.com/savings/which-saving-account for further details....

xylophone

Savings accounts can become dormant - I recall standing in a queue in a building society when the person at the counter was trying to sort out reactivating a savings account where this had happened - she was pointing out to the clerk that there wasn't a great deal in it etc and that she had changed address etc - it got to the point where some wag in the queue suggested that we have a whip round so that she needn't wait around any longer....:rotfl:

That said, it is rather a puzzle - I have a cash ISA that I shall leave alone until I wish to move it and won't necessarily make any more contributions.....

colsten

Savings accounts and ISAs can become dormant, like any other account banks and building societies offer. It should generally be quite easy to re-activate a dormant account (and rescue the balance over into an account that pays better interest. Or to just spend it).

Good write-up: http://www.moneysupermarket.com/savings/dormant-account-guide/