ISA cash allowance question

noh

Halifax should not have allowed you to open the variable rate cash ISA.
As the previous poster said you are only permitted to subscribe new money to one cash ISA per tax year.

From the Halifax web site
http://www.halifax.co.uk/isas/fixedrateisa.asp

"Please note: In any tax year, if you invest less than the full annual allowance of £3,600 in a fixed rate ISA Saver, you are not permitted to invest your remaining allowance in another Cash ISA and no additional deposits are allowed during the fixed rate term."

Nigel

jamesd

Describe how you were mis-advised in the branch and then say to them that:

"I want the money from past years to end up in a fixed rate ISA, and to be able to subscribe more money to a cash ISA in 2008/9. Any solution that achieves this is fine. I am told that what you need to do is:

1. An internal transfer from the fixed rate ISA back to the variable rate ISA with the same roll number.
2. Cancel my subscription to the second cash ISA and return the one Pound to me, telling me that that one Pound of my ISA allowance has no longer been used and I can contribute it to another ISA, per paragraph 5.5 in the Guidance Notes for ISA Managers.
3. An internal transfer of only the subscriptions and interest from past years to a fixed rate ISA, at the original rate even if that rate is no longer available for new subscriptions.
4. Leaving one variable rate ISA with subscriptions from this year, 2,600 still available to subscribe this year; and one fixed rate ISA with the subscriptions and interest from past years."

Fortunately it does seem that the incorrect advice given in the branch can be corrected without you losing anything.

Don't close any accounts or put more money into any cash ISA until they have replied.