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Dormant ISA

I just had a letter from my mini-cash ISA provider to say I hadnt paid in this year. I paid the max into another mini-cash ISA instead so this was no surprise. What did surprise me was that the letter said if I didnt (which I cant obviously) I would have to reapply if I wanted to pay in next year (ie after april 6). It seems I cant avoid this

Does anyone know if this is a general rule? or is it my provider?

Oh well, maybe time to reassess and do a transfer anyway

Comments

  • MJSW
    MJSW Posts: 171 Forumite
    It's an Inland Revenue rule. You can continue to pay into the same ISA every year without reapplying. But if you skip a tax year, you need to complete a fresh application if you then want to pay in any more in the year after.
  • lipidicman
    lipidicman Posts: 2,598 Forumite
    Yep, checked in branch - they just give you a new passbook - pretty simple really, but silly rule!
  • billieboy_2
    billieboy_2 Posts: 1,364 Forumite
    Part of the Furniture Combo Breaker
    lipidicman wrote:
    I just had a letter from my mini-cash ISA provider to say I hadnt paid in this year. I paid the max into another mini-cash ISA instead so this was no surprise. What did surprise me was that the letter said if I didnt (which I cant obviously) I would have to reapply if I wanted to pay in next year (ie after april 6). It seems I cant avoid this

    Does anyone know if this is a general rule? or is it my provider?

    Oh well, maybe time to reassess and do a transfer anyway

    MIGHT SEEM A SILLY QUESTION, BUT DOES THIS MEAN THAT YOU CAN HAVE MORE THAN ONE MINI CASH ISA GOING AT THE SAME TIME? I'VE GOT ONE WITH NATIONWIDE BUT IT'S NOT GIVING THE BEST RATE OF INTEREST. IF I OPENED ONE WITH A BETTER RATE GIVER, COULD I SPLIT MY £3000 LIMIT BETWEEN THE TWO (TO KEEP THE NATIONWIDE ONE GOING IN CASE THEY UP THEIR INTEREST RATE)? OR WOULD IT BE BETTER JUST TO TRANSFER TO A BETTER RATE GIVER? I DON'T KNOW WHETHER NATIONWIDE CHARGES A TRANSFER FEE - CAN'T FIND ANYTHING ON THEIR WEBSITE.
  • lipidicman
    lipidicman Posts: 2,598 Forumite
    I dont think you can split a years subscription (ie 1500 in each etc) so if you open a new one you are forced to let the old one go 'dormant' (ie no deposits in a tax year)
  • billieboy_2
    billieboy_2 Posts: 1,364 Forumite
    Part of the Furniture Combo Breaker
    Thanks for that.
  • grumbler
    grumbler Posts: 58,629 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    billieboy wrote:
    MIGHT SEEM A SILLY QUESTION, BUT DOES THIS MEAN THAT YOU CAN HAVE MORE THAN ONE MINI CASH ISA GOING AT THE SAME TIME? I'VE GOT ONE WITH NATIONWIDE BUT IT'S NOT GIVING THE BEST RATE OF INTEREST. IF I OPENED ONE WITH A BETTER RATE GIVER, COULD I SPLIT MY £3000 LIMIT BETWEEN THE TWO (TO KEEP THE NATIONWIDE ONE GOING IN CASE THEY UP THEIR INTEREST RATE)? OR WOULD IT BE BETTER JUST TO TRANSFER TO A BETTER RATE GIVER? I DON'T KNOW WHETHER NATIONWIDE CHARGES A TRANSFER FEE - CAN'T FIND ANYTHING ON THEIR WEBSITE.
    1. Yes, you can
    2. There is no good to split. I think it would be better to transfer.
  • billieboy_2
    billieboy_2 Posts: 1,364 Forumite
    Part of the Furniture Combo Breaker
    Thank You Grumbler. Will See Who Has The Best Rate And Find Out How Much If Any The Transfer Fee Is.
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