Top Cash ISAs Discussion Area

flopsymop

Hello All

Advice needed please.

I am trying to top my (over 50 years old) Father-in-law's ISA with Newcastle BS (transferred from BMW Savings) from £3600 to £5100 for the current year.

They are refusing to accept the top up funds because the rate was 6.7% fixed (yes, I know!!!)

Are they behaving legally?

Any guidance appreciated.

AbbieCadabra

different bank/bs i know but this is the info Northern Rock have on the £5100 allowance top up, it does mention about a specific time period that the isa was opened in - perhaps this is the same for your FIL?

Baldur

flopsymop wrote: »

They are refusing to accept the top up funds because the rate was 6.7% fixed (yes, I know!!!)

Are they behaving legally?

Afraid so.

See http://www.hmrc.gov.uk/isa/bulletin14.htm

Fixed-rate products Providers who are currently offering fixed rate ISA products should update their product literature to advise customers born on or before 5 April 1960 that they may not be able to subscribe above £3,600/£7,200 from 6 October 2009 if they choose to open the product now. It is a commercial decision for each provider on whether they decide to allow further subscriptions from 6 October 2009.

footboy

Can I :

Open and A&L 3.5% ISA (no transfers) for new money 2010-11

AND

Open a Nationwide 2.75% ISA (transfers allowed) £1 min deposit for previous ISA money?

or is this not allowed?

Thanks
Steve

Baldur

footboy wrote: »

Can I :

Open and A&L 3.5% ISA (no transfers) for new money 2010-11

Yes

Open a Nationwide 2.75% ISA (transfers allowed) £1 min deposit for previous ISA money?

You can transfer your old ISAs to this account but you should not deposit any new money, not even £1, as it would count against your current tax year's Cash ISA allowance (i.e. the tax year in which you subscribed it as new money) - you will, presumably, be transferring more than £1?

Note that you must be a Nationwide card account holder in order to open the e-ISA.

Jay83

Sorry can i just double check, so if i open a Santander account now, i can then add my next year balance and it all be at the 3.5% for the year?

So i could be getting that rate for £8,700?

Thanks

footboy

I currently have a Natwest e-ISA opened prior to the 14 May but rate changes on 11 Dec 2009 are tabled differently as below. ie. one table shows the rate HIGHER than the other of the same date etc.

Which should Natwest be honouring? Should they be liable to pay the higher advertised rate?

Have not approached Natwest about this yet. Couldn't figure out why I had conflicting figures in my spreadsheet at first. Whichever rate it is I will likely stick on the transfer front.

http://www.natwest.com/personal/savings/g6/rates/previous-rates.ashx

E-ISA rates
Interest rates for customers who opened an e-ISA account on or before 14 May 2009
Balance AER
(variable) Gross Rate Net Rate
£30,000+ 3.51% 3.45% N/A
£10,000 - £29,999 3.26% 3.21% N/A
£0 - £9,999 3.00% 2.96% N/A

Note: Internet based account only
Last updated on: 11 Dec 2009.

http://www.natwest.com/personal/savings/g2/isas/e-isa.ashx#tabs=section2

Interest rates for customers who opened an e-ISA account on or before 14 May 2009
Balance AER
(variable) Gross Rate Net Rate
£30,000+ 3.26% 3.21% N/A
£10,000 - £29,999 3.01% 2.97% N/A
£0 - £9,999 2.75% 2.72% N/A

Note: Internet based account only
Last updated on: 11 Dec 2009.


Regards
Steve

footboy

Baldur wrote: »

Yes

You can transfer your old ISAs to this account but you should not deposit any new money, not even £1, as it would count against your current tax year's Cash ISA allowance (i.e. the tax year in which you subscribed it as new money) - you will, presumably, be transferring more than £1?

Note that you must be a Nationwide card account holder in order to open the e-ISA.

Thanks for that. When it says transfer old ISAs does that mean that this years money cannot be transferred with it so to effectively close one ISA and switch mid(end of) year to another?

Many thanks
Steve

Baldur

footboy wrote: »

Thanks for that. When it says transfer old ISAs does that mean that this years money cannot be transferred with it so to effectively close one ISA and switch mid(end of) year to another?

No, a current tax year ISA can be transferred at any time (subject to any Terms & Conditions of the old and new accounts). The only relevant restriction on the transfer of current tax year ISA funds is that they MUST be transferred whole, whereas partial transfers of previous tax year's/years' ISAs are permitted.

Baldur

footboy wrote: »

I currently have a Natwest e-ISA opened prior to the 14 May but rate changes on 11 Dec 2009 are tabled differently as below. ie. one table shows the rate HIGHER than the other of the same date etc.

One is probably the variable rate paid from 11/12/09, while the other is the previous rate which was paid up to 11/12/09.