NatWest cash ISA guidance weirdness

so_many_questions99

Hi all, I have a NatWest cash ISA from last year and after being unwell this year am only just getting around to updating my accounts for this years allowance. 

My NatWest ISA already has the cash ISA interest rate they're offering for this year, and when I tried to open a new cash ISA, it refused to let me open it as I already have one with them. 

I called customer service and asked if the ISA from last year has been automatically updated to this year (since you can now open multiple ISAs right). Customer service said no I need to open a new one. But the website won't allow me to because of the existing one...!

Should I just pay into the one that's open? Will that still count as a contribution to my allowance for this year? In my head I just assumed that contributions to the new years allowance only should happen in new accounts?!

Additionally the NatWest site seems out of date in how many ISA accounts you can open in a year generally. It's all very annoying and confusing....

Has anyone else had this experience?!

Kim_13

so_many_questions99 said:

Hi all, I have a NatWest cash ISA from last year and after being unwell this year am only just getting around to updating my accounts for this years allowance. 

My NatWest ISA already has the cash ISA interest rate they're offering for this year, and when I tried to open a new cash ISA, it refused to let me open it as I already have one with them. 

I called customer service and asked if the ISA from last year has been automatically updated to this year (since you can now open multiple ISAs right). Customer service said no I need to open a new one. But the website won't allow me to because of the existing one...!

Should I just pay into the one that's open? Will that still count as a contribution to my allowance for this year? In my head I just assumed that contributions to the new years allowance only should happen in new accounts?!

Additionally the NatWest site seems out of date in how many ISA accounts you can open in a year generally. It's all very annoying and confusing....

Has anyone else had this experience?!

Is it a fixed ISA? If so, no, each issue has its own paying in deadlines and is a couple of months at most. If it is fixed, there is a penalty to leave early so the only thing to do would be to get through to someone who will put an application for a new one through for you, on the basis that the ISA you have is not from the current tax year (NatWest do state that you can only have one ISA from their range per tax year, as is their right.) 

If there is a rate NatWest are offering that you would like for this year, RBS likely have the same and you could open that without a ‘computer says no’ response as they are separate brands. You could do that and open an Easy Access ISA/another fix elsewhere since as you say, multiple Cash ISAs per year are now permitted by HMRC.

mebu60

Is your existing NatWest Cash ISA fixed rate to a maturity date or easy access? 

If it's EA you should be able to pay the current tax year new money up to £20k into it.

If it's fixed the funding window would have closed a set period after opening. 

jimjames

so_many_questions99 said:

Should I just pay into the one that's open? Will that still count as a contribution to my allowance for this year? In my head I just assumed that contributions to the new years allowance only should happen in new accounts?!

If you pay money in this tax year then it counts towards this tax year's allowance. It doesn't matter if it is an existing or new account

so_many_questions99

It's an instant access cash ISA so no fixes. So it sounds like maybe their customer service is wrong, and I can just pay into the existing one and count it towards this year's allowance. 

Kim_13

so_many_questions99 said:

It's an instant access cash ISA so no fixes. So it sounds like maybe their customer service is wrong, and I can just pay into the existing one and count it towards this year's allowance. 

I would try a small amount of money first in that case, just to check it is credited as expected. Providers can require a fresh declaration to be made for each tax year so funds would be rejected (and take varying amounts of time to arrive back with you) if that were the case. If funds are not credited, you'll need to get someone who will accept such a declaration before you can operate the ISA normally.

glennevis

Kim_13 said:

so_many_questions99 said:

It's an instant access cash ISA so no fixes. So it sounds like maybe their customer service is wrong, and I can just pay into the existing one and count it towards this year's allowance. 

I would try a small amount of money first in that case, just to check it is credited as expected. Providers can require a fresh declaration to be made for each tax year so funds would be rejected (and take varying amounts of time to arrive back with you) if that were the case. If funds are not credited, you'll need to get someone who will accept such a declaration before you can operate the ISA normally.

I would echo this advice.

A few years ago I deposited into last year's ISA and NatWest bounced the payment into my NatWest current account because they deemed last year's ISA was closed. They didn't send it back to the originating (non NatWest) bank account.