Shawbrook fixed rate cash ISA - initial deposit

sammy_zammy

Hi,

Shawbrook famously allows for unlimited deposits throughout the term of their fixed rate cash ISA. However, they do require an initial £1000 deposit in order to open an account. Does anyone know what the window to provide this initial deposit is?

The reason I ask is that I’m thinking of opening an account, but have used about £19,500 of my ISA limit for the year, so I cannot fund it this tax year without transferring! However with the end of the tax year approaching, depending on the funding window I may be able to open it now and fund it in a month.

I have tried to find the answer on the website but am unable to. Any help would be greatly appreciated! Thank you

refluxer

IIRC, I don't think Shawbrook state this in their fixed rate cash ISA T&Cs or in their general savings account T&Cs. I have had fixed rate cash ISA accounts with other providers in the past that had generous funding windows (eg. a month, which is what you'd need), but I suspect 1-2 weeks is more common.

Your best option for getting an accurate answer will be to contact them - either by secure message if you're an existing customer or if you aren't, either give them a ring or send a message via social media (Twitter/X or Facebook).

sammy_zammy

refluxer said:

IIRC, I don't think Shawbrook state this in their fixed rate cash ISA T&Cs or in their general savings account T&Cs. I have had fixed rate cash ISA accounts with other providers in the past that had generous funding windows (eg. a month, which is what you'd need), but I suspect 1-2 weeks is more common.

Your best option for getting an accurate answer will be to contact them - either by secure message if you're an existing customer or if you aren't, either give them a ring or send a message via social media (Twitter/X or Facebook).

Thanks for your reply! As per your suggestion, I just gave them a call and they said that you can open the account now, and then fund it whenever you like - it just won’t earn any interest until you’ve reached the minimum balance of £1000.

refluxer

sammy_zammy said:

Thanks for your reply! As per your suggestion, I just gave them a call and they said that you can open the account now, and then fund it whenever you like - it just won’t earn any interest until you’ve reached the minimum balance of £1000.

That's interesting because I did put that possibility in my original reply but then went back to edit the reply and delete that part, because it occurred to me that they were unlikely to allow someone to secure a high rate on a fixed rate account (as rates are dropping) without actually funding it.

I guess their liabilities are limited by the ISA allowance.

sammy_zammy

refluxer said:

sammy_zammy said:

Thanks for your reply! As per your suggestion, I just gave them a call and they said that you can open the account now, and then fund it whenever you like - it just won’t earn any interest until you’ve reached the minimum balance of £1000.

That's interesting because I did put that possibility in my original reply but then went back to edit the reply and delete that part, because it occurred to me that they were unlikely to allow someone to secure a high rate on a fixed rate account (as rates are dropping) without actually funding it.

I guess their liabilities are limited by the ISA allowance.

Interestingly I had already asked them on Twitter before I decided to call, and when they got back said it can only receive “additional” funds 7 days after it’s withdrawn, which I think suggests they (a) didn’t understand what I was asking, and (b) were referring to the non-ISA bond.

That said, my welcome letter said the same - but I think that has already been concluded to be a mistake on another MSE forum post!

Albermarle

sammy_zammy said:

refluxer said:

sammy_zammy said:

Thanks for your reply! As per your suggestion, I just gave them a call and they said that you can open the account now, and then fund it whenever you like - it just won’t earn any interest until you’ve reached the minimum balance of £1000.

That's interesting because I did put that possibility in my original reply but then went back to edit the reply and delete that part, because it occurred to me that they were unlikely to allow someone to secure a high rate on a fixed rate account (as rates are dropping) without actually funding it.

I guess their liabilities are limited by the ISA allowance.

Interestingly I had already asked them on Twitter before I decided to call, and when they got back said it can only receive “additional” funds 7 days after it’s withdrawn, which I think suggests they (a) didn’t understand what I was asking, and (b) were referring to the non-ISA bond.

That said, my welcome letter said the same - but I think that has already been concluded to be a mistake on another MSE forum post!

When I opened a fixed rate ISA with them, some of the paperwork was confusing on the above point. I messaged them and they said it only applied to non ISA accounts and said they would look into changing the wording, but obviously have not. 
I have since added to it many months after opening it with no problem, and since the interest rate on new issues had dropped.

I guess their liabilities are limited by the ISA allowance.

Correct, plus ISA transfers in after the initial account opening are only allowed at their discretion.

clairec666

Just opened a fixed-rate ISA with Shawbrook. My welcome letter drew attention to the following:

Please can I draw your attention particularly to Section 8 of our Terms & Conditions regarding deposits.

You can make deposits into your account until the product has been withdrawn from sale. To check whether a product has been withdrawn, please visit the withdrawn products section of our website www.shawbrook.co.uk. If we withdraw this product, you will not be notified in writing.

Sounds like you may not be able to pump more money in at a later date if the interest rate has dropped. I wonder if this is a recent change.

bristolleedsfan

clairec666 said:

Just opened a fixed-rate ISA with Shawbrook. My welcome letter drew attention to the following:

Please can I draw your attention particularly to Section 8 of our Terms & Conditions regarding deposits.

You can make deposits into your account until the product has been withdrawn from sale. To check whether a product has been withdrawn, please visit the withdrawn products section of our website www.shawbrook.co.uk. If we withdraw this product, you will not be notified in writing.

Sounds like you may not be able to pump more money in at a later date if the interest rate has dropped. I wonder if this is a recent change.

Post above yours including quoted post should answer your Q 

LL_USS

I had a question about 3 year fixed ISA accounts on this forum before, and it was said here that a perk with Shawbrook ISAs is that the added money in the subsequent years within this 3 years still gets the same rate.

I had a chat with Shawbrook in my account and this was confirmed by the agent. I put in a small amount to test and yes just a day after, the new money (of this year) entered the same account receiving the same fixed rate from the entry point onward to the end of the 3 years period.

I also opened a Close Brothers 3 years fixed ISA (for a transfer in) just after the Shawbrook one, also asked the agent about adding new money in, they messaged back to say yes (same as above). I did the same test, a few days later now they email me saying they need to refund the new money as the funding window is closed and we need to open a new account for that. So only Shawbrook 3 years ISA still accept new payments in during the fixed period!

Albermarle

LL_USS said:

I had a question about 3 year fixed ISA accounts on this forum before, and it was said here that a perk with Shawbrook ISAs is that the added money in the subsequent years within this 3 years still gets the same rate.

I had a chat with Shawbrook in my account and this was confirmed by the agent. I put in a small amount to test and yes just a day after, the new money (of this year) entered the same account receiving the same fixed rate from the entry point onward to the end of the 3 years period.

I also opened a Close Brothers 3 years fixed ISA (for a transfer in) just after the Shawbrook one, also asked the agent about adding new money in, they messaged back to say yes (same as above). I did the same test, a few days later now they email me saying they need to refund the new money as the funding window is closed and we need to open a new account for that. So only Shawbrook 3 years ISA still accept new payments in during the fixed period!

I think there are a couple of other providers, who will also accept payments into a fixed rate ISA, during the fixed rate period, but I can not remember who !

clairec666

Albermarle said:

LL_USS said:

I had a question about 3 year fixed ISA accounts on this forum before, and it was said here that a perk with Shawbrook ISAs is that the added money in the subsequent years within this 3 years still gets the same rate.

I had a chat with Shawbrook in my account and this was confirmed by the agent. I put in a small amount to test and yes just a day after, the new money (of this year) entered the same account receiving the same fixed rate from the entry point onward to the end of the 3 years period.

I also opened a Close Brothers 3 years fixed ISA (for a transfer in) just after the Shawbrook one, also asked the agent about adding new money in, they messaged back to say yes (same as above). I did the same test, a few days later now they email me saying they need to refund the new money as the funding window is closed and we need to open a new account for that. So only Shawbrook 3 years ISA still accept new payments in during the fixed period!

I think there are a couple of other providers, who will also accept payments into a fixed rate ISA, during the fixed rate period, but I can not remember who !

Barclays 1 year flexible ISA does - but it's a bit of an unusual account because it's fixed rate (3.8%) yet also allows withdrawals.