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interest on closed ISA account

This topic has 2 replies, 3 voices, and was last updated 3 years, 11 months ago by claire.

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April 20, 2020 at 19:29 #150902

Susan
Participant

This isn’t about the current crisis so I completely understand if this doesn’t get answered immediately, compared to a lot of questions on here, this is not important at all, but it’s on my mind so I thought I’d ask.

Last May I closed an ISA with a local building society. Today I received a statement from the same society showing that the account is closed but saying that there is still a balance of around £80.

Is it normal for accounts that are closed during a particular financial year to still have interest added at the end of that financial year? If so, what happens to that interest?

Thanks a lot. Stay safe everyone.

April 27, 2020 at 16:25 #151077

Jasmine Birtles
Keymaster

This is a surprise to me. I haven’t heard of interest being left in an ISA once it is closed.

I’m going to ask around some financial companies to see if any of them have a view on this, but my feeling is that if there is money left in your old ISA, either take it out if you would like to spend the money or have it transferred to your new ISA (speak to your current provider to contact the old ISA provider and move the money ‘behind the ISA lines’!)

May 24, 2020 at 14:16 #151539

claire
Participant

I agree with jasmine take it out or transfer it. iv never heard of that either.

but im also no expert. I cant even find a way to access my isa. so make the most of it while you can.
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