Isa

[Fusion5]

Mr F came from work last telling me about what happened to a work colleague.

He has an ISA with Lloyds Bank and never withdraws any money from it. Just checked it this week and two withdrawals of £14,000 each had been made within the last 3 weeks into a bank account which he never uses. LLoyds had charged him £200 for the privilege. He reported it straight away and it was looked into. Apparently the money was then transferred to another account at their Surrey Branch.

He will get the money back, but it just goes to show ISA accounts are not safe either.

[mikey4444]

There is nothing particular about ISAs here. Rather, a fraudulent withdrawal has been made for his account. My advice is that he should report this to the Police, as well as his Bank.

But unsure about the £200 charge ?

[ABerrant]

"But unsure about the £200 charge ?"

If it is a Llloyds fixed term Fixed Rate Cash ISA all withdrawals before the end of the fixed term may incur a charge equivalent to 6 months interest of the withdrawn amount.

e.g. if the ISA has a fixed interest rate of 1.55% and £28,000 is legitimately withdrawn, the charge would be about £28,000 * (0.0155/2) ~ £217

[mikey4444]

ABerrant ...you may very well be correct there !

But to take money out of an ISA isn't quite the same as taking money out of an ordinary deposit account, as there is the thorny issue of tax relief to be considered. So, if a clerical mistake was made by the Bank, than its quite potentially serious. I still think that the Police should be informed.

[EDDIE51]

^^ The police will not be interested and will not even record it as a crime.