Can I invest remaining MAXI ISA amount in Cash ISA

agrawaldeepak

Hi,

I have opened Maxi ISA with Selftrade with £500.
But than I realised that it is not for me so I haven't invested anymore.
Is there a way, I can save my remaining £2500 in cash ISA.

Please advice.

Aegis

Not this year, no.

agrawaldeepak

Thanks for the quick reply.

It means, I have wasted my this year's ISA , Is there anything I can do to be in better position.

Blowsy

there's a cash component of £3000 in your maxi ISA that you could invest in a cash fund.

Mikeyorks

Or you can simply wait the 3.5 weeks to 6th April and try again - with a new allowance and a revised strategy?

agrawaldeepak

Blowsy wrote: »

there's a cash component of £3000 in your maxi ISA that you could invest in a cash fund.

Thanks mate, thats the reply I was looking for.

Please also tell me, if I can transfer that cash component to Icesave cash ISA in 2008-2009.

Thanks again.

RayWolfe

You need to re-read Blowsy's answer. You cannot do what you propose.

agrawaldeepak

I called Selftrade and the lady at Customer service suggsted me to convert my MAXI ISA to mini ISA by filling a form.

I filled and sent the form but now they are saying, they cant convert it because I have already deposited money in it.

jamesd

agrawaldeepak, deposit up to 3,000 into a cash ISA of your choice. It's a breach of the standard rules that will trigger a letter from HMRC later this year telling you of the rules but will not invalidate the tax free status of the money in the cash ISA.

I do not guarantee that HMRC will follow the repair rules that I've described above - that's up to them. Anyone who is not aware of the procedure above should read section 12.35 of the Guidance Notes for PEP and ISA Managers:

"Mr James subscribes £3000 to a stocks and shares maxi ISA with Candobank plc in 2005-2006. Later in the same tax year he subscribes £7000 to a stocks and shares maxi ISA with Megafund plc. None of the subscriptions are used to purchase insurance products. The subscriptions to the Megafund plc ISA are invalid but repairable. The total subscriptions are £10000, which exceeds £7000. The excess subscriptions of £3000 must be removed from the Megafund ISA, but the other £4000 subscriptions can be repaired."

If Selftrade's conditions allow it and it is within 30 days of opening the account, you should tell Selftrade that you want to cancel your subscription and want your money returned. After a cancellation like this it is as if you have never opened the ISA. See 5.6 and 5.7 of the Guidance notes. You may also be within the up to 14 day cooling off period described in 5.5, and using the right to cancel in that period will also leave things as if you had never opened the ISA. Note that the shorter of these limts or the one in Selftrade's terms is the one that applies.