Fixed Rate ISA opened without a deposit

Loll10

I applied for a new fixed rate 1 year Cash ISA with Nationwide yesterday and during the application process it required a deposit of funds. The drop down list didn't show the Nationwide savings account that I needed and the only option was to click cancel.

Today the ISA is showing as opened with a nil balance. The T & C's state that no deposits can be made after the ISA is opened. I've started a chat with Nationwide but the first response was the same as the T & C's and that I can't add funds until it matures. The alternative was to open another savings account.

It will be a while before they reply again. Does anyone know what my options are to fix this so that I can have an ISA during this tax year?

Thanks.

TiVo_Lad

You can open as many ISA accounts as you like in a tax year, but you can only fund ONE of them with new money, so just open another ISA and fund that (assuming you haven't already funded another ISA with new money this year).

JGB1955

Is it possible that the ISA can only be funded from a nominated current account (rather than another savings account)?

boingy

JGB1955 said:

Is it possible that the ISA can only be funded from a nominated current account (rather than another savings account)?

This would be my best guess too.

In any case I'm pretty sure the OP has 14 days in which to close the ISA without penalty.

Loll10

I was funding it from a savings bond that matured yesterday for my husband. I had already done my own the day before with a bond that matured on 1st June which worked perfectly. I think I did his too quickly and should have waited a couple of days before those funds became available on the system. With hindsight, I could have moved the deposit to his current account first but as mine had worked ok I just did the same thing.

Thank you for all the replies and options for my next steps, they’re really helpful. :-)

badger09

TiVo_Lad said:

You can open as many ISA accounts as you like in a tax year, but you can only fund ONE of them with new money, so just open another ISA and fund that (assuming you haven't already funded another ISA with new money this year).

Just in case anyone is not aware of this, Nationwide is one of a few ISA managers which allows you to subscribe to (pay new money into) more than one of their Cash ISAs in any given tax year. So you could, for example open a FRISA & pay in £10k, then a few weeks later, open an instant access ISA and pay in another £10k over the rest of the tax year. 

Loll10

The Nationwide branch counter staff sorted this out in about 15 minutes. It involved them completing an online form on their system which will internally transfer the funds from the current account across to the newly opened ISA within 5 days. 

badger09

Loll10 said:

The Nationwide branch counter staff sorted this out in about 15 minutes. It involved them completing an online form on their system which will internally transfer the funds from the current account across to the newly opened ISA within 5 days. 

Good to see a sensible pragmatic approach from Nationwide