Is it possible to have a new ISA open, NOT FUNDED , prior to the 6th of April??

financialnumpty_3

Please note my username - this should imply that my knowledge of all matters financial is somewhat limited and is why I am an avid fan of this website - Big Thanks to Martin!! Anyway my question is:-
Would it not be beneficial to all concerned if new ISA's (for the next tax year) be opened (money laundering preventative checks etc.), NOT FUNDED, sometime prior to the 6th April then funds deposited/transfered in on or after that date???? This year seems to have been particularly slow and it has taken a month to get my own and the wife's ISAs up and running. This was with the Abbey and A&L. Interestingly previous ISA's were with the same providers!!!! A&L were the worst and I must say trying to get through to their Customer Services on the phone is not to be undertaken lightly!!
:eek:

Lokolo

You can do that but most ISAs require a deposit, or minimum amount in the account, which obviously, if you have contributed to another ISA before that you cannot do

Milarky

Just to point out that opening an ISA with a nil balance does not commit you in any way to then fund that account (i.e. you remain free to open a different ISA in the same year) provided you pay nothing in. This year, for instance, I 'opened' a Lloyds fixed rate ISA and never proceeded from there - and subsequently opened an ISA with First Direct. (same thing happened a couple of years ago too) The LTSB ISA is still there, listed with other accounts, but it's a shell.

financialnumpty_3

Hi Lokolo/Milarky
Surely there must be some way around this. At the moment it is a mad dash on and around the 6th April. I'm sure the Banks /Building Societies would appreciate a change in the rules???

financialnumpty_3

I suppose your "solution" Milarky would depend on the providers releasing details of the "new" products prior to the 6th April??

Lokolo

financialnumpty wrote: »

Hi Lokolo/Milarky
Surely there must be some way around this. At the moment it is a mad dash on and around the 6th April. I'm sure the Banks /Building Societies would appreciate a change in the rules???

Well basically banks or whatever don't want to offer no deposit. Don't forget they are paying people to process application, paying for engineers to write programs for accounts etc. etc. so they don't want people coming in, opening an account and leaving it with £0 in, its pointless having it then. Thats why they like to have deposits.

But yes it is a good idea, say on January 1st, apply for our new ISA with minimum balance of £0, ready for you to put your next tax year ISA in on April 6th. But meh.