OPENING AN ISA NOW AND MAKING A FURTHER DEPOSIT IN THE NEW ISA YEAR - QUERY

Moots2024

Most fixed rate cash ISA products allow for deposits additional to the initial deposit for a period of 60 days. If I open an ISA before 6 April 2025 by transferring already wrapped funds is it likely that I will be able to add £20K of unwrapped funds in the new financial year but within the 60 day period?

sammy_zammy

Yes, if the funding window crosses over the tax year then you are free to add 20k then.

eskbanker

Moots2024 said:

Most fixed rate cash ISA products allow for deposits additional to the initial deposit for a period of 60 days.

I don't think it's sensible to generalise like that - my impression is that 30 days is more commonplace but in any case the important thing is to check the Ts & Cs of the specific product concerned....

Albermarle

eskbanker said:

Moots2024 said:

Most fixed rate cash ISA products allow for deposits additional to the initial deposit for a period of 60 days.

I don't think it's sensible to generalise like that - my impression is that 30 days is more commonplace but in any case the important thing is to check the Ts & Cs of the specific product concerned....

Plus there a few that have no restrictions at all on funding with new money during the whole fixed term ( although transfers in can be restricted after the initial funding window) .

friolento

You need to refer to the T&Cs of the ISA you have in mind. There is no general deposit window rule that applies to all fixed term ISAs

Hal17

Just looking at Ford Money Flexible ISA paying 4.35%. You have to deposit a £1.00 within 21 days of opening the account. So can apply next week.

Interesting that their Flexible Saver is also paying 4.35%. So might use the ISA as easy access account, if you request a withdrawal before 1.00 pm then funds will be in your account same day - working day only.

refluxer

Moots2024 said:

Most fixed rate cash ISA products allow for deposits additional to the initial deposit for a period of 60 days.

I don't think there are many ISA providers offering such a generous funding window for their fixed rate cash ISAs.

The one with the longest window that I recall opening myself was 30 days and many are less than this (2-3 weeks).

As mentioned above, it's worth bearing in mind that some providers actually allow new ISA subscriptions throughout the duration of the fixed rate period. Some of the providers who spring to mind that allow this are Barclays, Shawbrook and Kent Reliance.

steveksullivan

refluxer said:

Moots2024 said:

Most fixed rate cash ISA products allow for deposits additional to the initial deposit for a period of 60 days.

As mentioned above, it's worth bearing in mind that some providers actually allow new ISA subscriptions throughout the duration of the fixed rate period. Some of the providers who spring to mind that allow this are Barclays, Shawbrook and Kent Reliance.

Correct, but one minor change at Shawbrook is that they now say (according to their well informed customer services rep...... ...) that they will only accept NEW MONEY subscriptions throughout the term. Last year they confirmed to me that they would also accept transfers in as well throughout the term, but this seems to have changed. (Apologies if this has been pointed out somewhere else before....)

steveksullivan

..... and following on from the previous post, is anyone aware of any other other institutions that allow contributions throughout the term (particularly transfers in.)

I'm trying to look at an option of funding an existing Kent Reliance fix with new money (£19k ???) on 6th April to benefit from it's decent rate for the approx 8 months remaining, and also opening a new account that will accept transfers in with my remaining allowance to fix a rate now, to act as a home for the Kent Reliance money when it matures.

Is this something people have done before? In the past I've always just bunged in the 20K to the best rate available on 6th ...

As always thanks in advance for any replies.

EDIT: .....hmmmm thinking further on the Shawbrook restrictions, I believe that they say Transfer In requests must be received at the time of application - but I haven't seen any restrictions on when the transfer needs to actually occur. So I could use the plan as above, opening a Shawbrook account with £1K on the 6th April and ask for the Kent Reliance transfer to occur 'on Maturity' (In October....) ....???  Any comments

refluxer

steveksullivan said:

refluxer said:

Moots2024 said:

Most fixed rate cash ISA products allow for deposits additional to the initial deposit for a period of 60 days.

As mentioned above, it's worth bearing in mind that some providers actually allow new ISA subscriptions throughout the duration of the fixed rate period. Some of the providers who spring to mind that allow this are Barclays, Shawbrook and Kent Reliance.

Last year they confirmed to me that they would also accept transfers in as well throughout the term, but this seems to have changed. (Apologies if this has been pointed out somewhere else before....)

Shawbrook have always stated that transfers in to their fixed rates cash ISAs need to be requested at the time of account opening and that subsequent transfers-in are at their discretion - this hasn't changed.

The exact phrasing from their T&Cs is... "Requests to transfer funds into an account from another ISA provider must be made at the same time as your initial account application by signing a transfer form. Transfer requests received after your initial account application may be refused."

This clause is presumably there to cover themselves for extreme cases where someone might attempt to transfer in a huge amount into a long fix secured at a high rate (should interest rates plummet and it not be in their interest to accept such a request) but, anecdotally on here at least, forumites requesting transfers in at a later stage have had their requests accepted - I don't remember reading about anyone having been refused.

Whenever I open a Shawbrook fixed rate cash ISA, I accept that if they accept transfers-in at a later stage, then this is a bonus rather than a 'given'. 

steveksullivan

@refluxer I agree, this is how I've always read their Ts and Cs but last year with an existing Virgin ISA maturing I got them to confirm in writing that they would accept the later transfer in.  Chatting to the CS advisor this year however she was much firmer on the requirement for the request to be on application.

However, should  my edit in the post above therefore work?