Fixed rate ISA

Bryando

Am I correct in saying ALL deposits to this account must be within 14 days of opening it?

http://www.coventrybuildingsociety.co.uk/savings-accounts/cash-isa.aspx Fixed Rate ISA 33

bowlhead99

Bryando wrote: »

Am I correct in saying ALL deposits to this account must be within 14 days of opening it?

http://www.coventrybuildingsociety.co.uk/savings-accounts/cash-isa.aspx Fixed Rate ISA 33

No you are not correct.

The link you just gave us shows the following, under 'important information':

We must receive your initial deposit, and any other deposits (including any ISA transfer instructions), either within 14 calendar days of us accepting your application or while the account is still open to new investors, whichever is longer.

For example:
You open the account today. Next week they decide to pull the offer of 'fixed rate ISA number 33' because they already got in enough money from customers as they need, so they decide to close it and replace it with the new product 'fixed rate ISA number 34' which is fixed until 2010 but only offers 1.75% interest instead of the 2.15% on your product.

In that situation, even though the account has been pulled for new customers, you could still add to your account, within current year annual ISA limit or by arranging ISA transfer in, for a further week, because you have 14 days from account opening to arrange this, even though the account is not open to new customers.

You just follow the 'whichever is longer' concept and in this case the 14 days is the longer one.

Alternatively:
You open the account today. They keep the offer of ISA number 33 open all through January. And in February the government base rate goes up so they're more than happy to keep offering you 2.15% on any new deposits. And they keep it open in March too. However by 1 April, new ISA season, they are conscious that with the higher government base rates, their product with its rate fixed to November 2020 is no longer competitive because rivals are offering 2.40% for a three-and-a-half year fix.

So at that point they withdraw the old ISA Number 33 paying 2.15% and launch ISA Number 34 paying 2.5%.

In this example you would be able to keep putting money into the product number 33 for a lot more than fourteen days (subject to your annual allowances), because they are perfectly willing to have other new customers come and throw cash into their #33 product for all of January and February and March and therefore they will let you do that too, if you want.

Of course if market rates are going up over the next few months you would probably not want to keep putting money into account #33 if there are other better homes for your money.

But the above two situations are what they are getting at with the 'whichever is longer' concept.

Bryando

thank you.