Hsbc Isa Problems

kbw271186

Hi all,

I had a preferential rate cash ISA with HSBC and saw the advert for their 6% e-cash ISA so I contacted them via secure messaging on internet banking to find out about opening the e-cash ISA.

They replied saying that in order for me to open thte e-cash ISA I would need to close my other ISA with them which I did.

I have been chassing the application up for the e-cash ISA and have been told that they are unable to open this as I have already subscribed for 08/09!

I am fumming as now I do not have an ISA for 08/09 and was going on their advise from what they said via the secure messaging :mad: :

Dear Mr XXXXXX

Cash e-ISA

Thank you for your e-message received 7 April 2008.

Please be advised that you will need to cancel the existing Cash ISA, in order to open a Cash e-ISA.


Kind regards
Pradeep Kumar
HSBC Internet Banking Customer Support

I have lodged a complaint with HSBC, but was wondering where I stand on this?

Many thanks

PauliPauli

See this thread ... http://forums.moneysavingexpert.com/showthread.html?t=843075

I hope by "close ISA" you mean transferred elsewhere, and not "removed monies" then closed?

Pauli

kbw271186

after receiving the message I instructed them to close the account and transfer the balance to my current account until the e-cash ISA was opened.

Baldur

kbw271186 wrote: »

after receiving the message I instructed them to close the account and transfer the balance to my current account until the e-cash ISA was opened.

Oh dear, that's the tax free status lost on those funds then.....you'll have to start again, from scratch.

PauliPauli

you now have two issues now !!

1) losing your Tax free status on monies removed from previous ISA .... I'm not 100% sure on this but I think their is a mechanism where Banks can revert your monies back to "ISA status" in exceptional circumstances ... ie their mistake and a letter to HMRC, I would definitely say you have a good case here

2) From other thread, you were definitely misinformed, you can have Both ISA's at the same time (providing you had not placed any new monies into the ISA you closed since the 5th April)

Good luck !!