"Opened" Icesave ISA, but changed my mind?

benjdr

All,
I still have an previous years ISA with NS&I, whose rate has tumbled, and I've been lagging greatly in the process of getting it transferred. I applied for an ISA with Icesave and specified that I would be transfering the NS&I ISA in. Icesave then ask you to fill out a form and send it off to them.

However, since I've now made the decision to move my existing saving account from Icesave to KE, and have so gone back on my decision to transfer the ISA there, maybe going to The Principality instead.

So, I am aware that I cannot open two ISAs in one tax year, but is the Icesave actually opened yet, or have I just started the process, and they are waiting for my transfer form?

Can I go ahead and transfer the NS&I ISA to The Principality without worry?

prudentsaving42

You haven't opened an ISA until you transfer money in, that was what I was told... but don't take my word for it.

Milarky

..so the thing you must do is contact Icesave straightaway and tell them you do not wish to transfer to them. This will terminate the transfer immediately if (as kenan says) the transfer has not yet taken place. You are then completely free to instruct a different ISA provider (KE) to approach NS&I to transfer from them. I did this change of heart act myself last year and subsequently did a whole different transfer

AirlieBird

You haven't opened an ISA before you deposit money that was not previously in the ISA system. So whether you have transfered or not, transfering from NS&I to Icesave or to Principality does not count as opening an ISA.

benjdr

AirlieBird wrote: »

You haven't opened an ISA before you deposit money that was not previously in the ISA system. So whether you have transfered or not, transfering from NS&I to Icesave or to Principality does not count as opening an ISA.

Thanks very much Airlie. Makes sense.

Paul_Herring

An "Open ISA" is an ISA that holds contributions from the current tax year. If it doesn't contain any contributions or only contributions from previous tax years, it doesn't fit HMRC's definition of an "open ISA."

It is this that allows you to `open` an ISA account with another institution (without breaking any rules) with a view to moving the current year's contributions should you decide to do so. And is also the reason that you can split up previous years' contributions into separate accounts, but must keep the current year's together.

Naturally ISAs 'close' every April 6th.

natman

I previoulsy posted a similar issue, which left me in a right mess for a while -

have a look at this thread if you want a nosey at how my tranfer to ICESAVE, Then a change of heart left me without my money

http://forums.moneysavingexpert.com/showthread.html?t=850991

bryanb

You could let the transfer go ahead, and then transfer again. But if you didn't return the transfer form they cannot get the funds from NS&I, so you could just forget Icesave as long as you haven't sent any other funds to them.