Chaos engulfs ‘Nisa’ switches

‘Nisa’ rules come into effect from July, but there is still confusion over the time limits for topping up fixed-rate cash Isas. Here we list the providers’ different deadlines The Isa allowance for the 2014-15 tax year is £15,000

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Much-needed changes are due to be made to Britain’s creaking Isa system in July, when the annual savings allowance will be increased from £11,880 to £15,000.

Savers will also be allowed to invest the full amount in either stocks and shares or cash, rather than splitting it between the two.

From July 1, all Isas may be known as New Isas, or “Nisas”. But despite the new rules in theory applying to all accounts, the reforms have led to a broad range of reactions among banks and building societies.

Companies are “scrambling” to amend their rules, according to analysts, and imposing their own restrictions to cope with the changes.

As a result, it has become clear that there will be no standard policy on how customers can use the new freedoms for existing Isa accounts. It has also emerged that the computer systems needed to allow people to move between cash and shares may not be up and running in time for the new rules.

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This could prompt a repeat of the cash Isa switching problems in which thousands of savers saw money go missing in 2008. Some switches ended up taking several months and in 2010 the rules were tightened so that cash Isas had to be switched within 15 working days.

In the meantime, there is widespread confusion over the deadlines for topping up fixed-rate cash Isas. The main problem, said Sue Hannums of independent savings site SavingsChampion.co.uk, is that fixed-rate accounts generally do not allow additional deposits after they are opened.

>> More: Ask an expert: ‘If I save into a fixed-rate Isa next month, can I use the £15,000 allowance in July?’

Older accounts that are closed to new customers may also not accept additional deposits. Even accounts still open to new customers are being restricted. This could be a problem for those who want to open a fixed-rate Isa now, and then top up to the full £15,000 Isa allowance when it becomes available on July 1. Ms Hannums said: “Some accounts allow top-ups throughout the tax year, but many allow them for just one month. Some allow tops-up on existing rates while others require that you accept the new fixed rate at that time.”

To help you navigate the new regulations, we have compiled a list of the different deadlines at the major banks and building societies.

Provider
Top-ups allowed
Time limit for top-ups
Notes

Aldermore

No

N/A

No additional deposits allowed, but will be able to open a new fixed rate Isa with the provider from July 1*

Bank of Cyprus

No

N/A

Cannot add to existing fixed rate Isa, but can open a new fixed rate Isa with them (at the rate at the time) to pay in the rest of the £15k*

Bank of Scotland

Yes

180 days from opening

Can be topped up within 180 days of the account being opened

Barclays

Yes

05/04/2015

If Flexible Cash Isa (3 year fixed rate) opened, it can be topped up with 2014-15 full allowance until the end of the tax year

Barnsley BS / Yorkshire BS / Chelsea BS

Yes

31/07/2014

Fixed rate Isas opened this tax year can be topped up until July 31, 2014

Bath

Yes

05/04/2015

Top ips allowed with no time limit, but their fixed rate Isas are only available to maturing Isa customers

Britannia

N/A

N/A

Currently no fixed rate Isas available

Buckinghamshire

Yes

31/07/2014

Fixed rate Isas opened from April to July can be topped up until July 31, 2014

Cambridge

Yes

05/04/2015

Top ups allowed from July 1 to the end of the tax year

Cater Allen

N/A

N/A

No fixed rate Isas available at the moment

Charity Bank

N/A

N/A

No fixed rate Isas available at the moment

Cheshire / Derbyshire / Dunfermline

Yes

31/07/2014

Able to top up until the end of July or if there is a better one can open a new one from July 1 *

Clydesdale / Yorkshire Banks

Yes

31/07/2014

From July 1 to July 31 one further deposit will be allowed into a FRISA opened this tax year

Coventry

Yes

Will be confirmed in June

Top ups will be allowed from July 1, deadline will be confirmed to account holders in June 2014

Cumberland

Yes

31/07/2014

Fixed rate Isas opened this tax year can be topped up from July 1 for one month

Furness

Yes

31/07/2014

Accounts opened from April to June will be able to be topped up during July 2014 only

Halifax

Yes

180 days from opening

Can be topped up within 180 days of the account being opened

Ipswich

Yes

05/04/2015

Top ups allowed from July 1 to the end of the tax year

Julian Hodge

Yes

31/07/2014

Single additional deposit allowed up to July 31, 2014

KRBS

Yes

05/04/2015

Additional deposits allowed within the tax year with no time limit. Provider also allows multiple Isas in the same tax year so can open a new fixed rate Isa*

Leeds

Yes

31/07/2014

Top-ups to accounts opened in the 2014-15 tax year are allowed during July

Lloyds

Yes

05/04/2015

Top ups allowed from July 1 to the end of the tax year

Manchester

N/A

N/A

No fixed rate Isas available at the moment

Mansfield

N/A

N/A

No fixed rate Isas available this tax year – variable Isas will allow top ups until the end of the tax year

Marks & Spencer

No

N/A

Will be allowed to top up, but each additional deposit will have its own start and end date *

Metro

Yes

31/07/2014

Top ups allowed from July 1 to July 31 if opened between April 6 and June 30

Marsden

Yes

05/04/2014

Top ups allowed from July 1 to the end of the tax year

National Counties

N/A

N/A

Savings provider has not released information

Nationwide

Yes

31/07/2014

Able to top up until the end of July or if there is a better one available can open a new one from July 1

NatWest / RBS

Yes

Previous issue FRISAs (100 & 101) = 18/07/2014. Updated for new issue FRISAs (102 & 103) = 08/08/14

Previous issue top-up deadline between 01/07/14 and 18/07/14
New issue Isas launched 07/05/14 top ups to £15k allowed between 01/07/14 and 08/08/14

Newcastle

Yes

31/07/2014

Fixed rate Isas opened this tax year can be topped up until the end of July. Provider also allows multiple Isas in the same tax year *

Norwich & Peterborough

Yes

31/07/2014

Fixed rate Isas opened this tax year can be topped up until July 31, 2014

Post Office

N/A

N/A

No fixed rate Isas available this tax year

Principality

Yes

05/04/2015

Top ups of fixed rate Isas allowed until the end of the tax year

Progressive

N/A

N/A

No fixed rate Isas available at the moment

Punjab National Bank

N/A

N/A

Savings provider has not released information

Saffron

Yes

05/04/2015

Will be allowed a ‘one-off payment’ as a top-up from July 1 until the end of the tax year

Santander

Yes

31/08/2014

Able to top up until August 31

Skipton

Yes

31/07/2014

Able to top up until the end of July

Tesco Bank

N/A

N/A

Savings provider has not released information

Triodos

Yes

31/07/2014

Fixed rate Isas opened this tax year can be topped up until the end of July

TSB

Yes

05/04/2015

Top ups allowed from July 1 to the end of the tax year

Ulster Bank

Yes

11/07/2014

Fixed rate Isas opened this tax year can be topped up between July 1 and July 11

United Bank Ltd

N/A

N/A

Savings provider has not released information

United Trust Bank

N/A

N/A

N/A – the provider’s fixed rate Isas can only be opened by transfer, no new deposits allowed

Virgin

Yes

31/07/2014

Only had FRISAs available to maturing customers, but these can be topped up until July 31

West Brom

Yes

30/09/2014

Fixed rate Isas opened this tax year can be topped up until September 30, 2014

Source: SavingsChampion.co.uk. * Although the rules state that you can only subscribe to one cash Isa manager each tax year, some providers offer a cash Isa that allows you to open multiple products with them each year. So customers can open more than one Isa product with that same provider, without flouting the rules.

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