Just Launched YBS Loyalty EISA Issue 2 -

piker57

savit4l8er said:

Shedman said:

piker57 said:

savit4l8er said:

Yes, when you open one you are advised you have 42 days to place funds into it. 

Edit.

It also confirms the same on the letter they send.

BEWARE : if no payments are made into the account within 42 days of opening it, we will automatically close it.

However please note this information on page 11 of the general T&Cs that they refer to on the webpage for the eISA.

If you don’t make any subscriptions (or transfers) into your Cash ISA during the tax year, which runs from 6th April to 5th April the following year, your application will no longer be valid at the end of the tax year. If this happens you’ll need to make a fresh application before you can start paying in again.

Well spotted and good heads up. 

The other providers I've looked opening an ISa 'early' don't appear to have that condition or are quite explicit in stating that if funds are not received by 5th they will count towards 23/24 ISA allowance so YBS seem to be an outlier.  I don't believe there is anything in the ISA regs that disallows opening an ISA in one tax year but not funding it until following tax year to have it counted as using following years allowance so it seems to be just a YBS imposed condition.

It's just referring to the declaration to resubscribe to the ISA, you have to apply to do so via a fresh application. 
The final words "start paying in again" are key. 

You’re correct “paying in again”, means that you’ve already paid in. What’s being advocated is to open the ISA now and to deliberately not pay anything in until the new tax year, so a saver doing this wouldn’t be paying in again, they’ll be paying in for the first time.

Also if someone has already opened a new cash ISA in the current tax year, it is against the ISA rules to open a second new ISA in the same tax year, as I hope most people are aware.

 I can understand that someone who has already subscribed to a new ISA this year, might want to open this YBS EISA to secure the rate before YBS close the issue, but savers need to be aware of the risks of not complying with the ISA rules set by The Treasury, not what a savings institution allows within their specific product terms.

savit4l8er

piker57 said:

savit4l8er said:

Shedman said:

piker57 said:

savit4l8er said:

Yes, when you open one you are advised you have 42 days to place funds into it. 

Edit.

It also confirms the same on the letter they send.

BEWARE : if no payments are made into the account within 42 days of opening it, we will automatically close it.

However please note this information on page 11 of the general T&Cs that they refer to on the webpage for the eISA.

If you don’t make any subscriptions (or transfers) into your Cash ISA during the tax year, which runs from 6th April to 5th April the following year, your application will no longer be valid at the end of the tax year. If this happens you’ll need to make a fresh application before you can start paying in again.

Well spotted and good heads up. 

The other providers I've looked opening an ISa 'early' don't appear to have that condition or are quite explicit in stating that if funds are not received by 5th they will count towards 23/24 ISA allowance so YBS seem to be an outlier.  I don't believe there is anything in the ISA regs that disallows opening an ISA in one tax year but not funding it until following tax year to have it counted as using following years allowance so it seems to be just a YBS imposed condition.

It's just referring to the declaration to resubscribe to the ISA, you have to apply to do so via a fresh application. 
The final words "start paying in again" are key. 

Also if someone has already opened a new cash ISA in the current tax year, it is against the ISA rules to open a second new ISA in the same tax year, as I hope most people are aware.

 

Maybe this thread is going a bit off track so without getting into everything else which I think is covered, I don't believe it's against ISA rules to open a second new ISA in the same tax year.

Opening and contributing new money to are two different things. You cannot subscribe new money to a second cash ISA if you have subscribed to another cash ISA and leave it open but you might open a 2nd, 3rd or more for various reasons, differing fixed terms for previous years subscriptions for example. 

If a new ISA is opened and not used, it will typically be closed as this one and will not count because there is nothing to report to HMRC.


I think I know what your getting at but it needed more, a lot of newbies will be confused.  🙂

piker57

savit4l8er said:

piker57 said:

savit4l8er said:

Shedman said:

piker57 said:

savit4l8er said:

Yes, when you open one you are advised you have 42 days to place funds into it. 

Edit.

It also confirms the same on the letter they send.

BEWARE : if no payments are made into the account within 42 days of opening it, we will automatically close it.

However please note this information on page 11 of the general T&Cs that they refer to on the webpage for the eISA.

If you don’t make any subscriptions (or transfers) into your Cash ISA during the tax year, which runs from 6th April to 5th April the following year, your application will no longer be valid at the end of the tax year. If this happens you’ll need to make a fresh application before you can start paying in again.

Well spotted and good heads up. 

The other providers I've looked opening an ISa 'early' don't appear to have that condition or are quite explicit in stating that if funds are not received by 5th they will count towards 23/24 ISA allowance so YBS seem to be an outlier.  I don't believe there is anything in the ISA regs that disallows opening an ISA in one tax year but not funding it until following tax year to have it counted as using following years allowance so it seems to be just a YBS imposed condition.

It's just referring to the declaration to resubscribe to the ISA, you have to apply to do so via a fresh application. 
The final words "start paying in again" are key. 

Also if someone has already opened a new cash ISA in the current tax year, it is against the ISA rules to open a second new ISA in the same tax year, as I hope most people are aware.

 

Maybe this thread is going a bit off track so without getting into everything else which I think is covered, I don't believe it's against ISA rules to open a second new ISA in the same tax year.

Opening and contributing new money to are two different things. You cannot subscribe new money to a second cash ISA if you have subscribed to another cash ISA and leave it open but you might open a 2nd, 3rd or more for various reasons, differing fixed terms for previous years subscriptions for example. 

If a new ISA is opened and not used, it will typically be closed as this one and will not count because there is nothing to report to HMRC.


I think I know what you’re getting at but it needed more, a lot of newbies will be confused.  🙂

I don’t disagree with what you say about being able to open any number of new ISAs to facilitate the transfer of prior year subscriptions from other providers or indeed internal transfers within a provider.

However what has been specifically recommended is to open the YBS EISA now with the clear intent to not fund it until the new tax year.  That would result in the EISA being closed by YBS and is contrary to the cash ISA regulations.

There are many provider references I could quote, but I’ll restrict myself to the information provided by MSE. If you look at the best cash ISAs page and go to point 7 of the ‘Eight cash ISA need-to-knows’, it’s clear that you can only have one current year’s cash ISA open at any time.

alibean121

piker57 said:

savit4l8er said:

Maybe this thread is going a bit off track so without getting into everything else which I think is covered, I don't believe it's against ISA rules to open a second new ISA in the same tax year.

Opening and contributing new money to are two different things. You cannot subscribe new money to a second cash ISA if you have subscribed to another cash ISA and leave it open but you might open a 2nd, 3rd or more for various reasons, differing fixed terms for previous years subscriptions for example. 

If a new ISA is opened and not used, it will typically be closed as this one and will not count because there is nothing to report to HMRC.


I think I know what you’re getting at but it needed more, a lot of newbies will be confused.  🙂

I don’t disagree with what you say about being able to open any number of new ISAs to facilitate the transfer of prior year subscriptions from other providers or indeed internal transfers within a provider.

However what has been specifically recommended is to open the YBS EISA now with the clear intent to not fund it until the new tax year.  That would result in the EISA being closed by YBS and is contrary to the cash ISA regulations.

There are many provider references I could quote, but I’ll restrict myself to the information provided by MSE. If you look at the best cash ISAs page and go to point 7 of the ‘Eight cash ISA need-to-knows’, it’s clear that you can only have one current year’s cash ISA open at any time.

You are going to have to give some references I think. I've never heard that opening an ISA in one tax year and first funding it in the next is a breach of HMRC rules - it doesn't sound correct. The rules are all around subscribing to multiple ISAs - if you haven't paid in, fundamentally you haven't subscribed.

35har1old

savit4l8er said:

The ISA has to be opened overnight before you can do an internal transfer, you get the previous partial / all options as you normally do.  Unfortunately, at the end of the ISA opening procedure, you are only given the option of completing the form and sending / taking it in. So don't get drawn into that. By all means, print the form if you want to cover all bases but wait until the following day before doing anything with that.  It's a new feature so it looks like their systems are not set up to facilitate it at the account opening stage.  

Make sure the transfer is regarded as a ISA Transfer not a general cash transfer as i have had this issue with other providers. If you had made the transfer between accounts it would have been regarded as a cash transfer loosing the ISA status. 
Make a phone call the next day and you might find they will be able to transfer it to the new ISA .without the need to fill the form in and send it in. 

When you think about it when you setup a new ISA with another provider you don't make a payment to them from you existing ISA you only send new money if applicable and they apply for the transfer of funds from the old provider

Update just had a look at the summary
It states Do not transfer any ISA balance yourself otherwise you’ll lose your tax benefits

35har1old

Growingold said:

Loyalty Six Access Saver e-ISA Issue 2

4.00%

Tax-Free p.a / AER variable
on balances up to £20,000

3.50%

Tax-Free p.a / AER variable
on balances over £20,000.01

• Save from £1 in this Cash ISA
• Interest is paid at maturity on anniversary of account opening
• Blended interest rate is used as this product has more than one interest rate tier
• Six withdrawal days during the one-year term, plus closure

Just had a look at the summary
It states Do not transfer any ISA balance yourself otherwise you’ll lose your tax benefits