Help Required Please

theo7

When i opened my Natwest current account in 2001 i also opened a Natwest Isa. But rather stupidly i put £400 into my Natwest Isa in this current tax year only to take it out about a week later (this is when i did not know anything about Isa's). Then a month ago i opened an Isa with the Halifax and i have currently contributed £1000 to this.

Please could someone tell me i have completely stuffed things up or advise me what to do.

Any information would be gratefully appreciated

Mike

dunstonh

At some point in the next 12 months you will get a letter from the inland revenue and Halifax telling you that the ISA has been invalidated. Halifax will either send you the money back with interest (taxed) or transfer your money into an alternative account.

theo7

what would you recommend i do then. Should i transfer the £1000 back into my current account so i can use the money to gain interest in a normal savings account and then close my Halifax Isa, or should i keep it open for next year

cheers mike

cadboll

When i opened my Natwest current account in 2001 i also opened a Natwest Isa. But rather stupidly i put £400 into my Natwest Isa in this current tax year only to take it out about a week later (this is when i did not know anything about Isa's). Then a month ago i opened an Isa with the Halifax and i have currently contributed £1000 to this.

If you put £400 into your Natwest ISA account for this year (2005/06) theoretically that would mean that you would have an option of still putting in a further £2,600 to bring you up to your maximum allocation of £3,000 per year.

Since your Halifax ISA will be invalidated, you will have to put that £1,000 elsewhere. Since I'm not an expert on this I could be wrong, but one suggestion might be to put it into your NatWest ISA. However, I don't know what effect, if any, opening an additional ISA account and then having it closed will have on this option.

jojo2004

Personally I would not wait for the IR OR for the Halifax, I would go into my local Halifax Branch, (God help you), personally I would gently insist on speaking to the Branch manager as this way you have a slighthly better chance of getting a degree of competance and be up front. You may or may not get 'caught' by the IR but as it really was an honest mistake own up and ask for help. Then when you get your money back put it into your existing ISA and learn the lesson. Can always transfer it to a better paying ISA later. Good Luck.

JasonG_2

Your ISA is created on your national insurance number, therefore in my experience they get spotted. Agree in approaching the Halifax, although I think you have little chance of getting to speak to a manager now days. This will either be closed or converted into a normal savings accout. If you still wish to use this allowance, you will should be able to use the Natwest one, as stated.