Dormant accounts - Brown's raid

deemy2004

So the banks get the money ?

I can imagine them working out ways near expiry time to ensure that they get to keep the extra lolly !

brm_2

So the banks get the money ?

Yep. They do.

brm_2

ReportInvestor wrote:

Losing interest from the start of year 4 may not be theft in the strict legal sense of the term. But it will feel like it after inflation has taken its toll on your capital .

Thanks to brm for identifying a possible "slippery slope" which future governments might exploit.

Thanks for your post.
As we all know, banks, building societies and insurance companies make vast sums of money each year, but increasingly have to make cuts in service to maintain or increase their profits.

Banks have adopted the "charge account" with 'free travel insurance, car recovery etc' which can be obtained on the market for a lot less cost than the banks charge for their annual fee.

How long will it be before we are unable to bank without a charge?
Or have we been 'sucked' into a system where only the institutions win?
I know we would not be able to go back to cash salaries.

As we also know, with the power of the 'web', 'Jo' public is also becoming much smarter.
Therefore we all need to be on our guard to ensure that these institutions do not bring in rules, 'overt or covert' that would damage our ability to have freedom of movement around the 'market place'.

ReportInvestor

Sorry I wasn't clear.

You're OK as long as you only contribute to one mini-Cash ISA in each separate tax year. You can keep the same one or choose different ones.

If you had a new Nationwide Cash ISA in 2005/6, you couldn't add to your old Bradford & Bingley ISA of 2004/5 in 2005/6. But if you had stuck with B&B, you could add to it in 2005/6.

beefturnmail

So what is the solution to this. If you deposit £3000 a year in ISAs from different providers how do you stop your accounts from becoming dormant?

deemy2004

I presume by contacting the branch and telling them in writing or over the phone that the account is NOT dormant !

Whats with new zealanders ? How could they let their government pass a day light robbery law ?

helen21_2

I'm sure at some stage they may be able to do this on new account's one day but it would have to be in some T&C's surely? When you open an account you sign to terms and conditions and them nicking your dosh was never in their terms and conditions! :eek:

helen21

brm_2

deemy2004 wrote:

I presume by contacting the branch and telling them in writing or over the phone that the account is NOT dormant !

Whats with new zealanders ? How could they let their government pass a day light robbery law ?

Nothing to do with the government, Deemy.
The financial institutions decide 'what is what' in NZ as far as personal accounts are concerned.
NZ have very few 'black arm banders'.
Sorry Deemy, but could not finish my post as grandchildren came round to play.
You will find that OZ has even less 'black arm banders'.

isasmurf

Weyres wrote:

I added to my If ISA in 2003 and 2004 after I hadn't deposited anything in 2002.

The bank hasn't said anything. Nor has the taxman. Any ideas folks?

If that is true then IF hasn't operated the ISA properly. If you haven't deposited anything in the ISA for a tax year the ISA is dormant. You must fill in a new application form when you next want to deposit anything in that ISA.

The chances of the taxman saying anything are slim, as they will only know when they come to audit the bank and your account is chosen in their sample.

ReportInvestor

It's true that you should have had to fill out a new application form to comply with the rules, but you could still have the same account / statement / passbook.