Can't pay into ISA

Abbafan1972

Hi there,

I am a bit confused - I have an ISA with the HSBC.  I believe it's called a loyalty ISA.

I have gone to pay into it and I get a message that tells me I've exceeded my subscription amount for this tax year.  My query is that I haven't paid into it for about 2 years.  

I have sent the HSBC a message via their chat to ask why, but don't expect a reply just yet, due to the holidays.

I was wondering if anyone here would know please?

Thanks in advance. 

jimjames

It might need to be reactivated if you've not paid in for a while. On the other hand they might have done you a favour letting you look elsewhere. Old ISAs rarely pay good rates even if they are called loyalty ones and I suspect you are getting much less than the best rates of around 5%.

lisyloo

If you know your records are correct then one way round it is to send via BACS transfer from your bank.
is it just a warning or actually preventing you?

p00hsticks

jimjames said:

It might need to be reactivated if you've not paid in for a while. 

Yes, it does - it tells you so and provides an online form to do it here 
Cash ISA | Our Best ISA Rates - HSBC UK

Reactivating your ISA

If you have an HSBC Loyalty Cash ISA and haven't added to it in the last year, you'll need to reactivate your ISA before you are able to top it up.

Our online reactivation form  is the quickest way to do this.

friolento

lisyloo said:

If you know your records are correct then one way round it is to send via BACS transfer from your bank.
is it just a warning or actually preventing you?

You can send a faster payment, not a BACS transfer. But it will be rejected if the ISA hasn't first been reactivated. As others have said, it might be a better / more profitable idea to start a new ISA, and possibly also request a transfer of the existing HSBC ISA into that new ISA.

Abbafan1972

friolento said:

lisyloo said:

If you know your records are correct then one way round it is to send via BACS transfer from your bank.
is it just a warning or actually preventing you?

You can send a faster payment, not a BACS transfer. But it will be rejected if the ISA hasn't first been reactivated. As others have said, it might be a better / more profitable idea to start a new ISA, and possibly also request a transfer of the existing HSBC ISA into that new ISA.

Hi thanks. Just to clarify, my main acc is with the HSBC, so it’s just a transfer between accounts, so no need to put in account details. 

It was preventing me from doing the transfer. I tried it both on the app and the website version of internet banking. But neither would let me. I would imagine it’s what has been said, the account needs reactivating. 

I think I will look around for a better rate. This one is 2.85%

xylophone

I think I will look around for a better rate. This one is 2.85%

About time by the looks of things.....

Contact the new provider to arrange the transfer.

https://www.thisismoney.co.uk/money/saving/article-1583864/Best-savings-rates-Isas-Cash-Isa-accounts-fixed-rate-Isas.html

Abbafan1972

xylophone said:

I think I will look around for a better rate. This one is 2.85%

About time by the looks of things.....

Contact the new provider to arrange the transfer.

https://www.thisismoney.co.uk/money/saving/article-1583864/Best-savings-rates-Isas-Cash-Isa-accounts-fixed-rate-Isas.html

Regarding a transfer - do you mean of funds? To be honest there is only 76p in there. I did notice there is a link to close the account. Can I just close the account and open up a new one? 

Angelica123

Abbafan1972 said:

xylophone said:

I think I will look around for a better rate. This one is 2.85%

About time by the looks of things.....

Contact the new provider to arrange the transfer.

https://www.thisismoney.co.uk/money/saving/article-1583864/Best-savings-rates-Isas-Cash-Isa-accounts-fixed-rate-Isas.html

Regarding a transfer - do you mean of funds? To be honest there is only 76p in there. I did notice there is a link to close the account. Can I just close the account and open up a new one? 

Yes as long you definitely haven't funded it this tax year. Otherwise it would have to be a transfer. 

Reed_Richards

Abbafan1972 said:

I think I will look around for a better rate. This one is 2.85%

Well that's how your "loyalty" is rewarded.  Time to look elsewhere!

Abbafan1972

Thank you for all your comments. I have seen the link posted above, but can someone suggest a bank that isn’t connected with the Nationwide please? 

Thanks.