Turning 40 this week-need LISA info please

afis1904

masonic said:

afis1904 said:

masonic said:

afis1904 said:

For most money put into any ISA the day that the money leaves your account counts, not the date when the funds appear into an ISA, doesn't it?

When paying by debit card, most providers will credit the funds immediately. But your statement is not true of bank transfers.

Oh yeah, but it does for Direct Debits for example (which I guess isn't too relevant here). Afaik my regular investment from Friday counts for 19/20.

Opening HL now with £100 and research investments is probably a very good idea for OP

A direct debit should be credited to the destination account on the same day it is debited from the current account. If not, then the date it is credited to the ISA would be the effective date of the subscription.

I used Wealthify for the cashback and they show the money as pending until they've invested it. Obviously different on a DIY platform like HL (and I think similar on Moneybox (?) although I only use that for the 95 day savings account direct debit).

masonic

afis1904 said:

masonic said:

afis1904 said:

masonic said:

afis1904 said:

For most money put into any ISA the day that the money leaves your account counts, not the date when the funds appear into an ISA, doesn't it?

When paying by debit card, most providers will credit the funds immediately. But your statement is not true of bank transfers.

Oh yeah, but it does for Direct Debits for example (which I guess isn't too relevant here). Afaik my regular investment from Friday counts for 19/20.

Opening HL now with £100 and research investments is probably a very good idea for OP

A direct debit should be credited to the destination account on the same day it is debited from the current account. If not, then the date it is credited to the ISA would be the effective date of the subscription.

I used Wealthify for the cashback and they show the money as pending until they've invested it. Obviously different on a DIY platform like HL (and I think similar on Moneybox (?) although I only use that for the 95 day savings account direct debit).

In that context "pending" doesn't mean the cash isn't in the ISA, it means the money is in the ISA and it's in the process of being invested. There is no obligation to invest money subscribed to a S&S ISA straight away, or indeed at all.

Alexland

This is where a good quality experienced platform that has refined their processes to work in the customer's best interests can pay off. Platforms such as HL and AJ Bell are accustomed to taking contribution instructions in the hours leading up to the end of a tax year.

https://www.gov.uk/guidance/manage-isa-subscriptions-for-your-investors#cash-subscriptions

Date of Subscription

Where the ISA manager has an instruction from the investor and is in control of the collection of the payment, the date of subscription is the date the manager is instructed to collect the payment provided:

• the instruction was accepted
• the payment is received in due course

...
debit card, charge card or credit card – the date on which authorisation is given by the investor

afis1904

Alexland said:

This is where a good quality experienced platform that has refined their processes to work in the customer's best interests can pay off. Platforms such as HL and AJ Bell are accustomed to taking contribution instructions in the hours leading up to the end of a tax year.

https://www.gov.uk/guidance/manage-isa-subscriptions-for-your-investors#cash-subscriptions

Date of Subscription

Where the ISA manager has an instruction from the investor and is in control of the collection of the payment, the date of subscription is the date the manager is instructed to collect the payment provided:

• the instruction was accepted
• the payment is received in due course

...
debit card, charge card or credit card – the date on which authorisation is given by the investor

Agreed and it looks like I was right about the direct debit bit but I do prefer companies that accept debit card partially because it feels much more transparent that way.

Nickjim

Thank you all so much for all this info!
I have only just read these but I have managed to open a LISA with Skipton. The one I tried to begin with was moneybox, so it only did as I was advised it might I really. I opted for that because I just wanted to get one opened up in time and I am thinking about opening one of the accounts with them that rounds up to the nearest £ and saves it when I use my card, but the Skipton one went thru and I have deposited some funds successfully, I think. So even though it maybe wasn't the best possible choice at least I have got one in time 

Alexland

Ok so you now have a 0.35% Cash LISA that wouldn't be suitable for saving in for 20 years as your money would reduce in spending power due to inflation.

So the additional challenge you have created for yourself is to transfer that account to a S&S LISA where the money can be invested with a good chance of earning a return above inflation.

HL are no longer an option as they don't accept inbound LISA transfers. The other provider choices might all require you open the account and initiate the transfer request before you are 40.

masonic

Yes, unfortunately as Alex says, I think you are now stuck with an unsuitable product for your investment aims and you are now going to struggle to transfer this to a suitable S&S LISA.

I would strongly suggest you check your cooling off rights. You might still have time to open a S&S LISA with a suitable provider and then cancel your cash LISA.

masonic

afis1904 said:

Alexland said:

This is where a good quality experienced platform that has refined their processes to work in the customer's best interests can pay off. Platforms such as HL and AJ Bell are accustomed to taking contribution instructions in the hours leading up to the end of a tax year.

https://www.gov.uk/guidance/manage-isa-subscriptions-for-your-investors#cash-subscriptions

Date of Subscription

Where the ISA manager has an instruction from the investor and is in control of the collection of the payment, the date of subscription is the date the manager is instructed to collect the payment provided:

• the instruction was accepted
• the payment is received in due course

...
debit card, charge card or credit card – the date on which authorisation is given by the investor

Agreed and it looks like I was right about the direct debit bit but I do prefer companies that accept debit card partially because it feels much more transparent that way.

Based on the above, it would appear it is the date the company is instructed to collect the direct debit that would be classed as the date of subscription, but that date would have to be a date on which it is possible for them to collect the direct debit. So, for a new account this could be 10 working days after the application if a new direct debit instruction needs to be set up with your bank. I don't think anyone opening an ISA on even 1st April could be treated as having funded it in the same tax year by direct debit if the manager can't collect the payment until, say, 14th April.

afis1904

masonic said:

afis1904 said:

Alexland said:

This is where a good quality experienced platform that has refined their processes to work in the customer's best interests can pay off. Platforms such as HL and AJ Bell are accustomed to taking contribution instructions in the hours leading up to the end of a tax year.

https://www.gov.uk/guidance/manage-isa-subscriptions-for-your-investors#cash-subscriptions

Date of Subscription

Where the ISA manager has an instruction from the investor and is in control of the collection of the payment, the date of subscription is the date the manager is instructed to collect the payment provided:

• the instruction was accepted
• the payment is received in due course

...
debit card, charge card or credit card – the date on which authorisation is given by the investor

Agreed and it looks like I was right about the direct debit bit but I do prefer companies that accept debit card partially because it feels much more transparent that way.

Based on the above, it would appear it is the date the company is instructed to collect the direct debit that would be classed as the date of subscription, but that date would have to be a date on which it is possible for them to collect the direct debit. So, for a new account this could be 10 working days after the application if a new direct debit instruction needs to be set up with your bank. I don't think anyone opening an ISA on even 1st April could be treated as having funded it in the same tax year by direct debit if the manager can't collect the payment until, say, 14th April.

Correct but I was referring to the date the direct debit left my account 😉

masonic

afis1904 said:

masonic said:

afis1904 said:

Alexland said:

This is where a good quality experienced platform that has refined their processes to work in the customer's best interests can pay off. Platforms such as HL and AJ Bell are accustomed to taking contribution instructions in the hours leading up to the end of a tax year.

https://www.gov.uk/guidance/manage-isa-subscriptions-for-your-investors#cash-subscriptions

Date of Subscription

Where the ISA manager has an instruction from the investor and is in control of the collection of the payment, the date of subscription is the date the manager is instructed to collect the payment provided:

• the instruction was accepted
• the payment is received in due course

...
debit card, charge card or credit card – the date on which authorisation is given by the investor

Agreed and it looks like I was right about the direct debit bit but I do prefer companies that accept debit card partially because it feels much more transparent that way.

Based on the above, it would appear it is the date the company is instructed to collect the direct debit that would be classed as the date of subscription, but that date would have to be a date on which it is possible for them to collect the direct debit. So, for a new account this could be 10 working days after the application if a new direct debit instruction needs to be set up with your bank. I don't think anyone opening an ISA on even 1st April could be treated as having funded it in the same tax year by direct debit if the manager can't collect the payment until, say, 14th April.

Correct but I was referring to the date the direct debit left my account 😉

I know that, but this thread concerns someone setting up a new account. If you want to talk about your own personal circumstances then to avoid confusion it would be better to start your own thread. We've already covered the fact that direct debits are debited and credited on the same day, whereas debit card payments are credited before they are debited. The OP should not open an account where the first payment is to be collected by direct debit.