ISA with Charter Savings Bank

loubeelou32

I opened an cash ISA with Nationwide in this tax year and transferred an existing ISA to it (no new money).

I now want to open a new cash ISA which I will add new money to.

Charter Savings has this wording that I need to agree to:

"I have not subscribed and will not subscribe to another cash ISA in the same tax year that I subscribe to this cash ISA"

but does the fact that I opened a Nationwide ISA this tax year mean I can't open an additional ISA with Charter? Seems odd but that's what the wording implies.

wmb194

https://forums.moneysavingexpert.com/discussion/6680573/isa-with-charter-savings-bank

It's another provider that hasn't updated its terms to reflect the new Isa regulations. Accept it and ignore it.

Anyway, if you haven't added new money to any other Isa this year then you are, so far this tax year, complying with these terms. "Subscribe" means adding new money.

ToastLady

It's ridiculous that they haven't updated their terms, but they are not alone. You just have to lie and say you haven't gone for a new ISA this year. Technically you haven't, as you haven't put new money in this tax year.

Do be aware that when it comes time for maturing, they will not necessarily offer you the best rate that they have, so you do have to check and act accordingly. My fixed with them matured on 20/8. Maturity instructions offered me 4.5% fixed or 4.15% EA Isas, whilst their rates on website showed 4.67% and 4.23% at the time, and still the same now. You can opt for opening another account entirely, but I was miffed at being offered the lower rate, showing no regard for customer loyalty, so transferred instead. The transfer was quick though, completed yesterday and money with new provider.

mrcrumb

With Charter Savings when they have better accounts on sale that are not listed in the maturity options, you can just open the account you want and it will be added to your options.

ToastLady

https://forums.moneysavingexpert.com/discussion/comment/82111018#Comment_82111018

Thank you. I do realise that. I was just miffed that they didn't include the top rate automatically in maturity instructions, a right Mrs Grumpy! 😂

mrcrumb

I think the rates offered in the maturity options are what was available on the first day of the instruction window opening, If rates improve during this window, the platform they use doesn’t update the maturity options. Some providers will automatically give you the higher rate when this happens. Some give you the higher of the current rate and application rate when you make the first deposit. I know of Vida, Vanquis, Paragon Bank, OakNorth. Any others ?

ToastLady

The better rates were available online before my maturity instructions were received. I had been checking a few weeks beforehand. I just thought it wasn't cricket. This has happened before, and no, Charter do not give you the higher rate. My maturing ISA went into the lower rate EA ISA for one day before being transferred. Anyway, am leaving it there, think enough said.

fuzzzzy

I had a similar query about ISA declarations with Vanquis this week. I have a triple access ISA with them but they e-mailed me to say they had brought out a new issue with a higher rate which I could transfer to by opening the new account, and closing and transferring the old. Thumbs up to Vanquis for this - I like it when a provider actively informs you that they have increased interest rates on new issues.(Although it would be even nicer if they just increased your rate automatically!)

It was confusing to navigate the ISA declarations though. My original Vanquis ISA was from a previous year subscription, and I had already used my current year subscription with another provider. Yet the only way I could actually open the new account with Vanquis and transfer in the old Vanquis ISA was to state that I had not subscribed to another cash ISA that tax year (which was not true) and that I was making a new investment (also not true, but if I chose to say I wanted to transfer an ISA it assumed I wanted to transfer from another provider).

I seem to remember having a similar scenario last year when transferring a Vida ISA to another Vida ISA.

So as long as I know I am not doing anything wrong I just tend to ignore the ISA declarations.

Yorkie1

I opened an cash ISA with Nationwide in this tax year and transferred an existing ISA to it (no new money).

You just have to lie and say you haven't gone for a new ISA this year. Technically you haven't, as you haven't put new money in this tax year.

Just to confirm the position, as others have said. "Subscribing" means opening an ISA and putting new money in. You have not put new money into an ISA this year. Even though the declaration wording is out of date with the revised ISA rules, you are NOT lying by answering 'No' because you have NOT put new money into another ISA this tax year.

mrcrumb

FYI with OakNorth they ask you at the start of the application if you have subscribed to a cash ISA with another provider.

If you have subscribed elsewhere and say “Yes” it forces you to set up an online cash ISA transfer. If you don’t want to do this you have to say “No”.

You can subscribe with any of these answers. You can also set up a transfer using a paper form.