ISA's that you can't pay into - what is the point??

[mothersdayhmm]

I opened an ISA recently and transferred money into it from an old ISA. I tried to make a deposit into it yesterday and it says I'm not allowed! Have checked the T&C's and this is their terms. I've not saved anything this tax year, so I still have my £20k allowance, but I can't pay into my ISA. What fresh hell is this?

I've obviously started looking for a new ISA that allows deposits as and when, and have been shocked to see that lots of banks are now only offering ISA's that don't allow deposits. So you have to open them with a lump sum, and can't grow your savings during the year, or use your tax free allowance.

What's going on?!

You need to ask the bank that issued the ISA.

Maybe that particular ISA is just for transfers? Ask the bank.

But "fresh hell" seems overblown ... just open another one if you need to for this year's contirbutions.

That's always been the case for some ISA products. You get a limited amount of time to invest a lump sum or transfer in. Usually they are fixed rate.
There are literally thousands of cash or stocks and shares isas that don't have these restrictions so it should be too hard to find one.
The information would be in the terms that are shown before you commit to opening the product.

Just accept the fact that you didn’t read the T&Cs properly and open another ISA that does allow deposits.

It isn’t exactly hell. Fresh or otherwise.

I had this problem with Nationwide. I put a pound in to open while I got the funds together to move the rest in. But I then wasn't allowed to add anymore. Yes, it was in the T&C's, no, I didn't read them properly. But I've always opened accounts with a a pound to make sure I've set it up properly etc

Have a look at Moneybox. Their app is great and the rate is ok too. Moneysavingexpert recommended too. I deposit a chunk of savings each month no bother

In good news though, you may now contribute to multiple ISAs throughout the year, so can just open another one.

Is it a fixed-rate ISA? They only have a small window for deposits and then it closes. I thought ordinary cash ISAs allowed deposits up to £20k throughout the year though?

Just open another ISA with the best rate that you can find. I don’t understand what the problem is.

Yes, it's a fixed rate ISA with Nat West. But I had a fixed rate ISA with Barclay's lasy year and that let me add deposits whenever I wanted. I've opened another one with Barclay's and will switch the money back to them.

I just find it so strange that a savings account exists, that you can't save into!!

Is it a fixed ISA? When I worked for Halifax you only had 90 days to fund a fixed ISA, to allow for transfers in (30 days for non isa fixed accounts).

On the ISA forum on MoneySavingExpert, this point is raised about the funding window for fixed rate ISAs. Most, give you thirty days or less to fund the ISA. After that you can't add anymore money. Some will last a bit longer and then give you notice that the funding period will end soon.

However, there are some providers that let you fund the fixed rate ISA during the whole fixed rate period. They are supposed to be Shawbrook, Kent Reliance, Barclays and Lloyds.

Yeah, it was a fixed rate ISA. I had no idea you couldn't pay in all year though. I've just changed it into a cash ISA and I'm going to send the money to a Barclays ISA that let's you pay in all year. Lost about £100 in interest, Gah!

Why do that and lose interest? Why not leave what you have in the fixed rate and then open a cash ISA to put any additional funds into?