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Query regarding ISA
richeeg
Posts: 1 Newbie
Hi Guys
We had decided to take out an ISA instead of an over fifties plan to cover funeral costs. We checked with the site and one of the recommended products was a five year fixed plan with the Newcastle Building Society. We thought this would be ideal for us. However it turns out that we were rather naive regarding ISA's and deposited the minimum amount and set up a standing order for £40.00 per month.
The first monthly payment of £40.00 was accepted into the account. However the next payments were returned to our current account without explanation. We subsequently rang the Newcastle and was told that the issue was now closed and that no more money could be deposited.
We now have £540 plus interest in the account for a fixed 5 year period.
We need advice on a better product/products that would suit our aim of covering funeral costs.
We had decided to take out an ISA instead of an over fifties plan to cover funeral costs. We checked with the site and one of the recommended products was a five year fixed plan with the Newcastle Building Society. We thought this would be ideal for us. However it turns out that we were rather naive regarding ISA's and deposited the minimum amount and set up a standing order for £40.00 per month.
The first monthly payment of £40.00 was accepted into the account. However the next payments were returned to our current account without explanation. We subsequently rang the Newcastle and was told that the issue was now closed and that no more money could be deposited.
We now have £540 plus interest in the account for a fixed 5 year period.
We need advice on a better product/products that would suit our aim of covering funeral costs.
0
Comments
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It's not just ISAs but almost all fixed-term products (i.e. including taxable ones too) that only allow contributions in a shortish initial window. However, the plus point of ISAs is that they must allow early access (albeit typically with penalty charges), unlike the taxable equivalent.
If you're looking to build up savings over a period of time then you might wish to look at regular saver accounts.
Did you consider prepaid funeral plans created for this specific purpose? I'm not saying they're good value for money but are quite an appealing option for many....0
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