Skipton Lifetime ISA Warning

bmouthboyo

On the main MSE Lifetime ISA page here Martin warns:

One small warning: Skipton has a T&C which allows them to stop accepting transfers in. It hopes not to have to activate it, but if too many people transfer at one time, it could stop them to allow it to give good customer service to all. It may therefore pay to transfer earlier rather than later.

Does this mean transfers from other ISA's or does it mean they might not allow people to deposit say £3999 towards the end of the Tax year in April?

isasmurf

Thanks for highlighting this. It means transfers from other ISAs. This means that it may not be prudent to keep saving in a HTB for the rest of the year to maximise interest and transfer it to the LISA next March.

bowlhead99

isasmurf wrote: »

It means transfers from other ISAs. This means that it may not be prudent to keep saving in a HTB for the rest of the year to maximise interest and transfer it to the LISA next March.

But someone else will accept transfers in if Skipton don't, so next March you can just move your Skipton LISA to that other place and the HTB ISA to that other place too.

The Skipton rate of half a percent is not so compelling that you'd want to move any significant money into it now (from your existing HTB or from a decent current account or savings account or other ISA) to avoid the 'threat' of them stopping accepting transfers later.

greenglide

... and when (if?) other providers offer cash LISAs Skipton may readdress this particular term?

LuxLuke

I called about this and they said it's only for extreme circumstances where you've basically done something which is against the rules. I.e. Opened two LISA's, already done a transfer into another ISA, transferring would mean going over the £4k limit for the year, etc.

So as long as you follow the ISA rules, you should be fine, I've just opened mine but I'm waiting until September to transfer to get my annual interest from Halifax.

Leedslad8t6

Hello,

Does anybody know if the following relates specifically to the cash isa or if its used in Skiptons investment products only?

"1. Chaps Fee (Telegraphic Transfer of Money) £6.00
This fee is payable when funds are directly transferred from
your investment account to another bank or building society
of your choice. If the fee is not paid directly to the Society it is
debited from your investment account.
This facility is not available on all products, please refer to your
account Terms and Conditions.
2. Duplicate Statements £10.00
This fee covers the cost of producing up to a maximum of
five duplicate previous years’ statements, provided that all
statements are requested at the same time. Subsequent
requests will be subject to a further fee. The fee is payable
directly to the Society prior to the statement being issued.
3. Third Party Debt Order £55.00
This fee covers the administration costs involved in registering
the Garnishee Order when it is received from the Plaintiff’s
solicitor.
The fee is deducted from your investment account on
registration.
4. Records £10.00
We will comply with the Data Protection Act at all times when
obtaining and processing data about you. You are entitled, by
paying a fee, to a right of access to information we hold about
you. This information will be provided in accordance with the
Act prevailing at the time of your request.
5. Special Clearance Cheque Fee £20.00
This is a fee which the Society must pay to the bank for
express confirmation of whether there are funds available to
cover a cheque that is being paid in. This may allow you to
draw against the cheque more quickly, rather than waiting
for the cheque to be processed through the usual clearing
system. As the process relies on the cheque being sent by
the bank, using first class post, to the drawing bank in order
for the check to be made, we cannot guarantee that this will
be any quicker than the usual process as delays can occur
beyond our control. If the fee is not paid directly to the Society"


I would like to open a cash isa purely to help buy my first home but these charges confuse me.

I thought it was straight forward cash ISA product when used to buy a home, with a possible fee when processing the withdrawal when buying a house...?


Thanks,

Danny

eskbanker

That tariff is linked from their LISA page so it suggests they would apply, but they're all optional charges, i.e. you'll only pay a duplicate statement fee if you request duplicate statements, you'll only be charged the data protection tenner if you submit a request for your personal data, etc.