Virgin ISA Question

Digital_Payback

Can anyone help and give me a clear answer to this?

Can I open a Virgin Money Defined Access Cash E-ISA (5.06%) and not be required to fund it immediately?

In their info. they write that an initial deposit can be made by card. It’s not clear if that is required or simply an option. 

Really what I want is to open the account, and fund it after 6th April for the new tax year.

Thanks for your help 

Martyn_H

That's what I did with OakNorth as they have a 30 day funding window. I emailed them beforehand just to check and they said it's the day of the initial deposit that counts, not the day of opening.

MDMD

The Virgin Money Defined Access Cash E-ISA has only restricts withdrawals. There are unlimited deposits so you can pay in whenever you want up to the limits.

Digital_Payback

Thank you, MDMD.
The unlimited deposits are what I like, but my question is more about the first payment into the ISA. Does it have to be made immediately on opening, or can the first deposit be made in the new tax year?

Martyn_H

Digital_Payback said:

Thank you, MDMD.
The unlimited deposits are what I like, but my question is more about the first payment into the ISA. Does it have to be made immediately on opening, or can the first deposit be made in the new tax year?

Check what the length of the funding window is. As I said, I have 30 days from opening my OakNorth account in which to make an opening deposit, which I've timed to be after April 5th.

Digital_Payback

That’s the problem, MDMD. 
It is a flexible ISA, not a fixed rate ISA, so there is no defined funding window as such, and I can’t find anything that says I have to fund it on opening, or that I don’t have to. Maybe Virgin consider that folk will assume that the ISA can be funded laterally anytime. 

ColdIron

It says 'Minimum to open £1' so maybe not but why not just try, what have you got to lose?

The_Green_Hornet

According to their website:

Deadlines for ISA deposits 2023/2024

If you’re investing in a new ISA, or topping up an existing one, please note that your deposit must be made by a certain time to count towards this year’s ISA allowance.

- Postal cheque deposits must be with us by Friday 5 April.

- Cash/cheque deposits need to be made in a Virgin Money store by close of business on Friday 5 April.

- Virgin Money Mobile and Internet Banking deposits must be made by 10pm Friday 5 April.

- Faster Payments transfer from another bank must be made before midnight Friday 5 April.

If your deposit is not made by the timings above, it will not count towards this year’s ISA allowance, instead it will count towards the new 2024/2025 tax year instead.

Deposits for the new 2024/2025 tax year will be accepted from Saturday 6 April 2024

Defined Access Cash E-ISA | ISAs | Savings | Virgin Money UK

ColdIron

That's just restating the ISA rules and has no bearing upon how Virgin operate their account

OP wants to open the account now to secure the rate but wait until 2024/25 before making a deposit so is asking if Virgin (not HMRC) will allow that without making a deposit at the time of opening

badger09

The fact that VM specify a minimum £1 opening deposit suggests it’s not possible to open now but not fund until on/after 6 April. 

Contrast with VM Exclusive FRISA which has a funding window up to 30 days after they withdraw it from sale. 

RG2015

Digital_Payback said:

That’s the problem, MDMD. 
It is a flexible ISA, not a fixed rate ISA, so there is no defined funding window as such, and I can’t find anything that says I have to fund it on opening, or that I don’t have to. Maybe Virgin consider that folk will assume that the ISA can be funded laterally anytime. 

I don't think it is a flexible ISA. The Moneyfacts site says it is not and the VM summary box doesn't mention it.

But as previously stated there is no harm in opening one and funding it after 5 April.