Urgent Advice please: 2 Year Fixed Rate Isa Bond

booklover

Hello

I opened a 2 Year Fixed Rate Isa Bond last April but haven't used my Isa allowance for this 07/08 Tax Year. Yesterday the advisor in the Nationwide told me i am NOT allowed to deposit any more money in to this ISa. This one of the conditions of this Isa.

I'm confused and annoyed, as I don't recall hearing this at the time of opening it.

I don't know what to do now>>>>

Please advise me if you can.

Thanks.

booklover

born_again_saver

Hi booklover,

Although you cannot pay any more money into your existing ISA bond with Nationwide, you should be able to open a new ISA with another provider for 2007-8 (if you act quickly).

Did you ask the adviser whether you would be able to open a brand new Fixed Rate ISA Bond for this year, rather than adding to the existing one - either the one year fix or an additional 2 year fix? Possibly they only allow you to hold one of these ISA bonds at any one time, but it does seem a bit odd if so.

Hungerdunger

booklover wrote: »

I'm confused and annoyed, as I don't recall hearing this at the time of opening it.

This illustrates how important it is to check and retain all the terms and conditions for any particular investment.

Most fixed-term savings accounts will have certain conditions attached, such as "no further deposits can be made" etc. There will also be conditions about whether any sums can be withdrawn before maturity and if so whether a penalty will be applied. And finally there will be information on what they will do with your funds on maturity.

I used to be bad at this myself, but as I've now got savings with several Building Societies, I make a point of keeping all the documents relating to each one in a separate folder, and even keep a spreadsheet with all relevant details - date of maturity, interest rate, date interest is added to account, amount invested etc. Possibly overkill, but it helps to avoid problems like yours.

RayWolfe

Well said Hungerdunger. So many posts here come about because people are just not aware of what they are signing up for. Always read AND keep the T&Cs.

GreyCat

Hi,
It may be a bit close to the line now - but I seem to remember that Nationwide are unusual in that they allow you to have different types of ISA account with them (Fixed rate, variable etc) but treat it all as one ISA. So although you can't add to your fixed rate ISA, you could in theory put the balance of this year's ISA allowance in their variable rate Mini ISA. Whether you can do that before the deadline is another matter.
I can't remember where I read this - I think it was in the T&Cs somewhere on their website, and another poster referred to it in a different thread on here.
Good luck!

GreyCat

noh

You can't deposit any more in the existing ISA but you should be able to open a new fixed rate ISA bond for 2007/2008 assuming you have not opened a cash ISA this year.

http://www.nationwide.co.uk/pdf/savings/P5905_ISAs.pdf

Nigel

booklover

Thanks everyone for all your help. Much appreciated.

Unfortunately I wasn't well so missed the deadline....

Oh well, i wont let it upset me ,,,

booklover