Not an official answer obviously, but you can have a cash portion to S&S ISAs for residuals like uninvested dividends etc. so I’d expect it stays in the ISA wrapper until you move it elsewhere, i.e. to spend.
Is there a November issuance or have I missed something?
Few posts up
Looks like they are planning a bumper one so will take a bit longer to organise with all the visa stuff and crowdfunding
Its true but when we bid on Dozens via ISA wrapper, it always ask NI number and it looks like it is treating a new application hence I need to hear from Dozens.
@robert, it seems that you are ignoring my simple questions while responding to others in this thread. Is there any reason why I cant get an official response from Dozens ?
Thanks for your patience on this. I’m definitely not ignoring you, but it is a complex area and I want to make sure I am not misleading anyone.
The simplest answer is that it will be treated as a new ISA, so please think of it as such.
The longer answer is below
The Grow section is something we were working on when our focus was diverted to migration and all the technical issues associated. We appreciate that we could provide more clarity of the split of GIA and ISA funds for these sorts of questions. However, once the Visa migration is complete, there are many things we would like to bring to this particular area of the app.
First, let me point you to a more detailed answer I gave some time ago which currently still holds true.
Now, what we are talking about here is the reinvestment of funds ALREADY in an ISA.
If you had bonds in an ISA wrapper, and these have matured, the original amount plus the interest will have been returned to your cash savings in Grow. Unless you have moved funds in or out, then this amount is still safely within the ISA wrapper for the tax year it was opened.
If you bid for bonds in this tax year, then as long as you are only using the funds already in that ISA then this would be a movement within the ISA, not the addition of funds to a new ISA.
If you have opened a Stocks & Shares ISA elsewhere this tax year you will not be able to open a new ISA with Dozens, but in theory you could use existing funds.
If you have funds in the ISA wrapper, we will prioritise using these funds for a future bid, but we will also use any new funds not already in that wrapper if required to meet the amount you have bid. Because of this, it is up to the investor to ensure they are not bidding more than is included in that wrapper.
As we have already accepted above, we know that this is not easy in the current app and we are working on a solution, but please be aware of this.
One further complication is that, at this time, when you bid using an ISA wrapper with Dozens, you have to virtually sign the ISA declaration to state that you have not opened a new ISA elsewhere in this tax year. I believe that our current set up does not allow us to confirm this reinvestment as one within your existing ISA as opposed to a new ISA.
I therefore would suggest that you do not choose the ISA option at this time if you have already opened a different S&S ISA this year.
We will definitely look at offering more detailed control over these wrappers and ISA options in the near future, but they are not available today and this is the safest option.
Hi, when will we hear of this latest issuance or are you dodging a month?
We are not skipping a month as such, but because we are in the middle of the migration and there could be some disruption to the bidding process running smoothly and fairly, we are not opening it until after we’ve completed the move.
We hope to announce the details and dates of the next issuance, which we’ve already said is going to be a ‘bumper’ issue, as soon as we can but it is likely to be close to the end of this month and then stay open for December.
Right; nobody’s getting any Christmas presents from me this year
Would it be possible for give at least 2 working days notice on commencement of next bond bidding window?
When I request to withdraw money from my cash savings the money doesn’t hit my current account until next working day, so having only 1 working day notice might mean its not possible to participate at start of bidding window. I suspect others may be in similar position. Its not a problem when bidding windows are predictable, but that’s not the case at the moment.
Won’t the new accounts be much faster?
I mean cash savings at another provider, not Dozens. When I bid on a Dozens bond I take the money from my cash savings and move to Dozens
Well, I can’t say exactly when it will open (I honestly don’t know yet) but … it is very convenient to open bidding early in a month and have it running for that month
Any reason you wouldn’t move some funds in to have them ready to use to bid?
The date of bidding really only makes a difference if you happen to bid exactly the cut off amount, but with the larger / bumper bid coming up this may be less of an issue
Because Dozens doesn’t pay any interest on cash savings. I wouldn’t want to move money in when next bidding window is unknown and potentially have it sitting there for several weeks earning no interest. If Dozens were to pay a competitive rate on cash savings I’d consider moving all my cash savings to Dozens. Wouldn’t need to be market leading. Competitive would do.
Not sure where you’ve got your money but savings interest rates at the moment are rock bottom. (2% is best currently)
You’re gonna be missing out on maybe £1 of interest by not having it in Dozens ready.
Don’t assume @o99’s savings are in an account that you’ve heard of / is currently generally available / is accepting new customers. (They may even be earning more than 5% for a term that’s nearly up!)…
@robin99 that’s assuming we know when the bidding will open. We’ve had hints in the forum but no formal announcement. Without formal announcement of a date it could be weeks before bidding window opens.
@dan_g Sadly not anywhere near 5%
Dozens is not a bank, and we cannot (by law / regulation) pay interest on money held directly with us.
It is not that we wouldn’t like to reward our customers, so that’s exactly why we do create opportunities, like making available bonds that pay as much as 5%, so our customers can be rewarded for putting money away, as well as very competitive options for investments.
Specific dates will be along shortly
It seems to me there are potential solutions to that. HL for example is not a bank but partners with banks to offer interest paying cash savings accounts.
The bonds and investment options are appreciated but when you want or need a place to hold cash (beyond your short term spending needs) there is no real incentive to use Dozens for this purpose.
Monzo do this too, but look at rates… would never be great, I’m sure banks aren’t lining up for these sorts of arrangements just now (especially since the account is likely to be used for short-term while people waited for bond availability…).
You could get a Virgin Money current account for 2% interest (on up to £1k) and stage money there for a same-day FP to Dozens bonds… very quick/easy to open online.
Interestingly I do this the other way around, waiting until the last day so I don’t lose interest all month… but I’m only bidding for small amounts likely to be accepted at any time…
Monzo’s savings account rates never top the charts, but when you compare only to banks that also provide current accounts (so perhaps more direct competition) the arrangement tends to look better. For example, of such banks only the Virgin Money group (including Yorkshire and Clydesdale) and Metro Bank are currently offering better rates on Easy Access savings accounts.
However HL manages to do better then Monzo at enabling higher rates through partner banks so Monzo isn’t the best example of what can be achieved.
Am considering trying Virgin Money, but it would be yet another account to manage…