Kent Reliance Changes - should I open new ISA

Ljc80_2

I have had a KR Fixed rate ISA for few years and have always regularly deposited into it every month or so.

I believe I will no longer be able to do this so will just have to leave it as it is until it matures next year.

Are there other ISAs that allow regular deposits? Or should I look at a normal savings account instead? I’ve always worried about paying tax on one of those (although I’m not sure how that tax is actually taken?).

Once the current ISA matures can I then transfer in anything I had in a regular savings account before it moves to another fixed rate period?

my other thinking is I’ll just start overpaying mortgage rather than saving!

mebu60

It's highly unlikely you have been depositing monthly into a fixed rate ISA. With a fixed rate ISA there is usually a funding window of 2 - 4 weeks or so into which you can make one or many deposits up to your available ISA allowance before the window closes. Then it's locked down until maturity. Early redemption tends to come with a heavy penalty.

Easy access cash ISAs will allow you to pay in deposits at any time. Subject to your ISA allowance limits for that tax year which is for you to manage.

Area88

Barclays allow deposits into their flexible fixed ISAs during the entire duration of the ISA. Kent Reliance was also the same but a change in online system had muddied things.

ToastLady

Shawbrook is another who did let you add further deposits, but not further transfers, within the fixed term. Best to check current t's and c's though.

Growingold

https://forums.moneysavingexpert.com/discussion/comment/82023861#Comment_82023861

Think I've read in their t & c's now further deposits allowed while the issue remains open

Ljc80_2

thank you I’ll look at those options. Just for future is it possible to transfer 2 ISAs into one new one when you open a new one with a different provider?

I’ve only ever transferred one in before but can see myself amalgamating 2 in future

Malchester

https://forums.moneysavingexpert.com/discussion/comment/82023778#Comment_82023778

My understanding is that KR fixed ISAs on the old platform allow additional deposits but when they transfer to their new platform that will cease. The new platform is 100% better than the old one.

mebu60

https://forums.moneysavingexpert.com/discussion/comment/82023969#Comment_82023969

Every day is a school day, live and learn, thanks. At least I caveated with 'highly unlikely' :-)

Agree re KR new platform, the immediate funds transfer in/out is excellent improvement.

mebu60

https://forums.moneysavingexpert.com/discussion/comment/82023945#Comment_82023945

Yes, just ensure new provider accepts transfers-in.

And bear FSCS limit of £120k in mind if your total ISA pot is getting into that sort of territory.

poseidon1

Just got off the phone with KR trying to get clarity on their fixed rate isa and whether it is, or will be flexible ( ie whether one can replace interest drawn monthly back into the ISA within the tax year).

Confusingly for me, it seems if I subscribe to the 4.45% 1 year fixed ISA today, its is definitely not a flexible product until it eventually becomes part of the future batches of customer accounts migrated to KR's new online system. The customer service rep could give no timetable for this migration excercise.

What she did confirm, is any monthly interest paid out prior to migration to the flexible platform, cannot be repaid. On this basis, I cannot consider their current fixed rate offering.

Interestingly their instant access ISA which is also currently non flexible, there apparently is no clarity as to whether that will ever acquire flexible status. I pointed out it would be odd and confusing for fixed rate isa products to go down the flexible route, but exclude instant access options, however at that point the rep could only return to her scripted responses.

If anyone who already has a 2026/27 fixed rate isa with KR can throw any further light on the matter, that would be appreciated.

Area88

I complained to Head Office at Kent Reliance and they offered to let me leave penalty free without any charge.

However, because Kent Reliance have delayed the transference to their new online systems, I can still deposit money into my fixed iSA. No new fixed date has been given as to when I will lose access for new deposits so I may hang in there for a while.