Dormant accounts and ISAs

baby_boomer

Has the government taken on board the problem relating to ISAs in their keenness to get their hands on savers' money to divert to "good causes" (i.e. keep the tax burden lower than it otherwise would be).

ISAs are unique in that they are likely to be accounts which you don't add to (because you can't after the end of the tax year, or if you've invested the full amount in the first place). This assumes that many people, including me, open a new ISA each tax year with the best paying institution at the time.

They are also accounts which you are least likely to withdraw from (because you lose the tax benefits on your investment when you do).

So - as people don't "transact" on Cash ISAs I could see plenty of "dormant ISAs" emerging in about a decade's time because savers won't have touched them for 15 years.

Is this an issue MSE should be raising with the Treasury well in advance, in order to avoid future inconvenience and distress to MSE members?

Fat_Girl_Slim

Isn't it really the responsibility of individual savers to manage their accounts and keep track of their money? Why should the government be involved?

Fat_Girl_Slim

I've since found this BBC article. http://news.bbc.co.uk/1/hi/programmes/moneybox/3343963.stm The criteria for declaring an account dormant seem to be quite stringent for most organisations.