Number of mini cash ISA's per year

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
5 replies 880 views
lindwurmlindwurm Forumite
3 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I opened a fixed rate mini cash ISA during this tax year, investing £250 per month. However after I paid in £750, the account issue was closed by the provider and I cannot now invest any more £££ into this ISA.

I am somewhat unsure what I can do to still be able to invest the remaining £2,250 of my annual max investment of £3k tax-free. In the normal T&C of mini cash ISA's it always states that one cannot open more than one mini cash ISA in any one tax year.
Does this effectively mean that as I have already opened this fixed rate ISA in the current tax year, I cannot open another one? And the fact that I cannot invest in the fixed rate ISA any longer just means this is the risk you take by opening a fixed rate ISA rather than a variable rate one? And that I cannot invest the remaining £2,250 is tough luck? This seems a bit unfair?!

I am sorry if this is a obvious or silly question, but I am new to all these ISA rules and would really appreciate if anyone could shed some light on my confusion - and hopefully tell me how I can still invest up to £3k this tax year, tax-free.

THANK YOU VERY MUCH

Replies

  • Are you sure the Issue hasn't just been closed to new investors? It would be odd for a provider to prevent existing customers adding to their savings.

    :confused:

    The alternative is that it was an account designed for people with a lump sum they wanted to leave untouched for a year. Which bank / ISA product is this?
  • MidasMidas Forumite
    594 Posts
    Part of the Furniture 500 Posts Combo Breaker
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    You can transfer the money to a new isa by filling out a transfer form (available from your provider). DON'T withdraw the money as cash or you'll lose that part of your annual allowance.

    But as Jim says, its very odd that they've stopped you paying in. What company is this?
    Midas.
  • lindwurmlindwurm Forumite
    3 Posts
    Its was a fixed rate issue with a building society (Leeds & Holbeck) and I went with them because they had only transfer penalties during the fixed rate period, but not afterwards.
    I am pretty sure that I cannot make any further investments - and the account was advertised as a regular saver account, with a low minimum investment. But it states in the T&C of the account that the issue can be closed to additional investments, both for existing and new investors.

    This also happened to me last year but i was not too upset as it was just prior to the end of the tax year and I did not have the full £3k anyway to invest.

    So do you think i can just open a new ISA? I saw the guaranteed ISA at 5.5% from National Counties BS, which guarantees interest of at least 0.5% above base rate until April 2006 with only 10 day transfer penalty.
    I am really confused as in all ISA descriptions, leaflets etc it states that I can only open one mini cash ISA per year.

    Thanks
  • lindwurmlindwurm Forumite
    3 Posts
    Update: sorry for this confusion guys - I finally had correspondence back from Leeds and Holbeck and they have confirmed that as an existing investor I can continue to invest up to my ISA allowance.

    Thanks for your help though

    PS: I found this website really useful - good work!!!
  • lindwurm wrote:
    Update: sorry for this confusion guys - I finally had correspondence back from Leeds and Holbeck and they have confirmed that as an existing investor I can continue to invest up to my ISA allowance.
    That's good to hear!

    :j
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