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    • Puddleskipper
    • By Puddleskipper 14th Apr 18, 12:13 PM
    • 5Posts
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    Puddleskipper
    TSB ISA Confusion
    • #1
    • 14th Apr 18, 12:13 PM
    TSB ISA Confusion 14th Apr 18 at 12:13 PM
    I have had a TSB 2yr Fixed Cash Isa which is ending this week, they sent 10 pages of information about what to do but aren't very helpful so I went into a branch this morning, the option is another 2 years at 1% Fixed, or let it roll into a Cash Saver ISA at 0.2%. If I agree to the new 2 year Fixed ISA with TSB they are saying that it then becomes a brand new ISA and therefore I cannot open another one with 20K for my new year allowance with another provider. I thought that the money I have put into the TSB ISA over the last two years is classed as "Old Money" which I was told it was by a Building Society where I have another Cash ISA maxed out at the limit, so therefore I should be able to open another ISA elsewhere and leave the TSB ISA as another 2 Year Fixed at 1% which I am prepared to do, my concerns generally are keeping limits below 85K with providers, any thoughts please.
Page 1
    • Alexland
    • By Alexland 14th Apr 18, 1:10 PM
    • 2,389 Posts
    • 1,790 Thanks
    Alexland
    • #2
    • 14th Apr 18, 1:10 PM
    • #2
    • 14th Apr 18, 1:10 PM
    Yes I agree this TSB product is confusing.

    Just looked at the product webpage and summary box PDF and it suggests a 3000 opening deposit is required but the T&Cs say it can be opened with 1. Perhaps the reason it would count towards this years ISA allowance is because they require the opening deposit in advance of processing the transfer request? Or maybe they would consider the first 3000 of any transfer as a new contribution?

    https://www.tsb.co.uk/savings/isas/two-year-fixed-rate-cash-isa/
    https://www.tsb.co.uk/savings/isas/two-year-fixed-rate-cash-isa/two-year-fixed-rate-cash-isa-terms-and-conditions.pdf

    No idea, its not clear. Maybe ask them to explain in writing or go elsewhere for a better rate?

    Alex
    Last edited by Alexland; 14-04-2018 at 1:13 PM.
    • xylophone
    • By xylophone 14th Apr 18, 2:05 PM
    • 25,373 Posts
    • 14,969 Thanks
    xylophone
    • #3
    • 14th Apr 18, 2:05 PM
    • #3
    • 14th Apr 18, 2:05 PM
    Better ISA rates are available from other providers.

    If you want a two year fix, why not transfer the maturing ISA to one of them?

    I fail to understand how a transfer of an "old" ISA to which you have not subscribed in the current tax year can be said to use up your current year's allowance.


    http://www.thisismoney.co.uk/money/saving/article-1583864/Best-savings-rates-Isas-Cash-Isa-accounts-fixed-rate-Isas.html
    • Puddleskipper
    • By Puddleskipper 15th Apr 18, 10:45 AM
    • 5 Posts
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    Puddleskipper
    • #4
    • 15th Apr 18, 10:45 AM
    • #4
    • 15th Apr 18, 10:45 AM
    Thanks for your replies, my question really is - should TSB class the existing ISA as a new ISA by moving it into a 1% Fixed Rate ISA using the existing amount currently in the product (Same Account Number/ Sort Code) - due to this being "old money" as mentioned to me by another building society?

    I have no intention of adding my 20k 2018/19 allowance into this ISA which I understand would stop me opening a new one elsewhere, I just want to leave it there BUT not at 0.2% which is the only other option they offer.I fully intend to open a new ISA this year with another provider as long as I am legally able to?
    • AirlieBird
    • By AirlieBird 15th Apr 18, 10:54 AM
    • 1,020 Posts
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    AirlieBird
    • #5
    • 15th Apr 18, 10:54 AM
    • #5
    • 15th Apr 18, 10:54 AM
    The T&C appear to state that you can convert an existing TSB cash ISA and that it is a continuous application.

    I would go back to the branch and speak to a manager or give their savings team a call for a second opinion.
    • Alexland
    • By Alexland 15th Apr 18, 11:26 AM
    • 2,389 Posts
    • 1,790 Thanks
    Alexland
    • #6
    • 15th Apr 18, 11:26 AM
    • #6
    • 15th Apr 18, 11:26 AM
    Generally a transfer of previous tax year ISA contributions to a new product or provider would not stop you contributing to a new ISA elsewhere. However the terms of this TSB product are unclear so we suggest you contact them for clarification or go somewhere better.
    • stevewinn
    • By stevewinn 17th Apr 18, 2:34 PM
    • 1 Posts
    • 0 Thanks
    stevewinn
    • #7
    • 17th Apr 18, 2:34 PM
    • #7
    • 17th Apr 18, 2:34 PM
    I have had a TSB 2yr Fixed Cash Isa which is ending this week, they sent 10 pages of information about what to do but aren't very helpful so I went into a branch this morning, the option is another 2 years at 1% Fixed, or let it roll into a Cash Saver ISA at 0.2%. If I agree to the new 2 year Fixed ISA with TSB they are saying that it then becomes a brand new ISA and therefore I cannot open another one with 20K for my new year allowance with another provider. I thought that the money I have put into the TSB ISA over the last two years is classed as "Old Money" which I was told it was by a Building Society where I have another Cash ISA maxed out at the limit, so therefore I should be able to open another ISA elsewhere and leave the TSB ISA as another 2 Year Fixed at 1% which I am prepared to do, my concerns generally are keeping limits below 85K with providers, any thoughts please.
    Originally posted by Puddleskipper
    I had the same account as yourself, they said the same to me if i selected the option for a new fixed 2 yr term it would count as a brand new ISA. I asked them, if i let it mature and change to 0.2% would that count as a new ISA also? they said no. - Its confusing, so either way the account changes but only counts as new if you take the 2yr option. in the end i decided to look elsewhere, while looking for a new provider my TSB fixed 2yr matured and rolled over changing to their 0.2%.

    I decided to move to Halifax signed up opened 5yr fixed ISA account and completed their online ISA transfer form selected the option to move the full balance and they did took them 3 days and i can still contribute this years 20k allowance.
    • Puddleskipper
    • By Puddleskipper 22nd Apr 18, 12:00 PM
    • 5 Posts
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    Puddleskipper
    • #8
    • 22nd Apr 18, 12:00 PM
    • #8
    • 22nd Apr 18, 12:00 PM
    Thanks for the info Steve, I have opened a variable ISA with Nationwide at 1.4% and am transferring all of the TSB ISA over as it has just matured and rolled into the 0.2% product, If I had realised the restrictions on the TSB ISA I wouldn't have opened it and don't remember any mention of it when I did open it - lesson learned!!
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