Cash ISA - Dormant and risk of closure

suprememum

I have cash ISAs which I am not investing in, as I can only pay into one per tax year.
I have read that an account left unused will become dormant. BUT The HMRC website says:

"Your ISAs will not close when the tax year finishes. You’ll keep your savings on a tax-free basis for as long as you keep the money in your ISA accounts."

So what classes as dormant? Will my bank close my ISA at some point? How long can it just sit there gaining interest?

*pre-empting comments. I don't wish to combine them as I do not want to go over the £85k protection with any one provider

Thank you

friolento

What interest rate are you getting on the dormant ISA?

suprememum

A decent amount. I am not looking to tranfer in to a new one. I want to keep my balances below my £85k protection

grumpy_codger

suprememum said:

...
I have read that an account left unused will become dormant.

"Accounts are declared dormant after banks fail in attempts to track you down at your last known address." -  MSE, Reclaim forgotten cash

suprememum

grumpy_codger said:

suprememum said:

...
I have read that an account left unused will become dormant.

"Accounts are declared dormant after banks fail in attempts to track you down at your last known address." -  MSE, Reclaim forgotten cash

Thanks. I understand the domancy rule. But 'my cash is sitting gaining interest' I obviously can't add to it as it's not my active account. So how does my bank know? Would just logging in and checking the balance every so often be sufficient for them to see it is active?

wiseonesomeofthetime

suprememum said:

I have cash ISAs which I am not investing in, as I can only pay into one per tax year.

This is no longer the case, subject to each individual provider's own T&Cs of course.

You can save in more than one Cash ISA, as long as the total of new subscriptions across all of them - for that tax year - do not exceed £20k

My Virgin Money one has been unused since April 2021. It is now of use to me, at 4.51%, however, I cannot deposit until 6 April 2025 as have used up all this year's allowance across TWO Cash ISAs already - Trading212 and Moneybox. Nothing on my account yet to warn me about its current inactive status.

suprememum

wiseonesomeofthetime said:

suprememum said:

I have cash ISAs which I am not investing in, as I can only pay into one per tax year.

This is no longer the case, subject to each individual provider's own T&Cs of course.

You can save in more than one Cash ISA, as long as the total of new subscriptions across all of them - for that tax year - do not exceed £20k

My Virgin Money one has been unused since April 2021. It is now of use to me, at 4.51%, however, I cannot deposit until 6 April 2025 as have used up all this year's allowance across TWO Cash ISAs already - Trading212 and Moneybox. Nothing on my account yet to warn me about its current inactive status.

Thanks, but not all providers have adopted this rule. 
https://    moneyweek.com/personal-finance/savings/isas/multiple-isa-rule-how-it-works
This really isn't an issue. I just want to know if I'm safe to leave my previous ISAs untouched.

Barkin

suprememum said:

wiseonesomeofthetime said:

suprememum said:

I have cash ISAs which I am not investing in, as I can only pay into one per tax year.

This is no longer the case, subject to each individual provider's own T&Cs of course.

You can save in more than one Cash ISA, as long as the total of new subscriptions across all of them - for that tax year - do not exceed £20k

My Virgin Money one has been unused since April 2021. It is now of use to me, at 4.51%, however, I cannot deposit until 6 April 2025 as have used up all this year's allowance across TWO Cash ISAs already - Trading212 and Moneybox. Nothing on my account yet to warn me about its current inactive status.

Thanks, but not all providers have adopted this rule. 

It's not really for them to decide. 

The only restriction that they can enforce is "only one ISA with us"

What do you mean by "not my active account"?

You don't need to periodically fund an ISA for it to be "active".

If it's an easy access ISA, any money will sit there until you do something with it. 

If it's a fixed term product, it'll sit there (active...) until the end of the term, at which point you should be contacted and your maturity options explained. 

Section62

suprememum said:

wiseonesomeofthetime said:

suprememum said:

I have cash ISAs which I am not investing in, as I can only pay into one per tax year.

This is no longer the case, subject to each individual provider's own T&Cs of course.

You can save in more than one Cash ISA, as long as the total of new subscriptions across all of them - for that tax year - do not exceed £20k

My Virgin Money one has been unused since April 2021. It is now of use to me, at 4.51%, however, I cannot deposit until 6 April 2025 as have used up all this year's allowance across TWO Cash ISAs already - Trading212 and Moneybox. Nothing on my account yet to warn me about its current inactive status.

Thanks, but not all providers have adopted this rule. 
https://    moneyweek.com/personal-finance/savings/isas/multiple-isa-rule-how-it-works
This really isn't an issue. I just want to know if I'm safe to leave my previous ISAs untouched.

You need to check what the T&C's of the account say about closure, as well as the provider's general terms and conditions.  The requirements will be specific to the account you hold, but usually the provider has to contact you giving you notice of closure.

Alternatively contact them and ask the question - make it clear you don't want the account closed due to dormancy, but you don't want to transact on the account currently due to the ISA rules.

daveyjp

suprememum said:

grumpy_codger said:

suprememum said:

...
I have read that an account left unused will become dormant.

"Accounts are declared dormant after banks fail in attempts to track you down at your last known address." -  MSE, Reclaim forgotten cash

Thanks. I understand the domancy rule. But 'my cash is sitting gaining interest' I obviously can't add to it as it's not my active account. So how does my bank know? Would just logging in and checking the balance every so often be sufficient for them to see it is active?

Probably and a financial institution will always write (and no doubt email) you before going through the dormancy procedure,

But if you are really concerned if the account allows it withdraw a few quid once a year.

suprememum

Barkin said:

suprememum said:

wiseonesomeofthetime said:

suprememum said:

I have cash ISAs which I am not investing in, as I can only pay into one per tax year.

This is no longer the case, subject to each individual provider's own T&Cs of course.

You can save in more than one Cash ISA, as long as the total of new subscriptions across all of them - for that tax year - do not exceed £20k

My Virgin Money one has been unused since April 2021. It is now of use to me, at 4.51%, however, I cannot deposit until 6 April 2025 as have used up all this year's allowance across TWO Cash ISAs already - Trading212 and Moneybox. Nothing on my account yet to warn me about its current inactive status.

Thanks, but not all providers have adopted this rule. 

It's not really for them to decide. 

The only restriction that they can enforce is "only one ISA with us"

What do you mean by "not my active account"?

You don't need to periodically fund an ISA for it to be "active".

If it's an easy access ISA, any money will sit there until you do something with it. 

If it's a fixed term product, it'll sit there (active...) until the end of the term, at which point you should be contacted and your maturity options explained. 

Really helpful. Thanks. 
Yes, easy access so you have answered my question.
I have read misinformation. Pleased to see it can only be applied to their own product portfolio.