Cash in share ISA's

Got my annual statement for my self select share ISA yesterday and found that interest had not been paid on cash held in it. Querying it with the company the answer was that they pay interest at 2.5% below Base Rate so that now equals sweet F.A. Derek

Just found out yesterday. I can get 3% on it from several sources. Derek.

Hope there were no management charges on that!

Had this reply back from them yesterday: Further to your letter of 4th May 2009 regarding the lack of interest received on your ISA, I regret you have found the need to complain about our service and would like to assure you that we have looked into the issues you have raised. For your reference I enclose a copy of the Redmayne-Bentley Complaints Procedure leaflet, which explains how we address any concerns raised by our clients. Having looked at your account it seems that you are quite correct about missing interest payments. We have investigated this further, and it would appear that this technical fault occurred as a result of a series of unrelated events; namely, that when your ISA was transferred out of Redmayne-Bentley some years ago, the account was marked as 'closed'. However, you still held a PEP account with us which functioned as normal. As you will know, last year, the merger of ISA and PEP accounts took place and so we merged all client PEP accounts into their corresponding ISAs. Unfortunately, in your case, this resulted in your PEP account being merged into an ISA account that had been highlighted as closed, and so, whilst the account worked soundly in all other respects, the function that stops interest payments being made to closed accounts was not removed and so your account has not been credited with interest.

I must apologise for this oversight and can assure you your account is now correctly set-up to receive any future interest payments.I have detailed the payments below which should have been credited to the account in the last year:

Period 6th April 08 - 30th June 08 31.63

Period 1st July 08 - 30th September 08 32.03

Period 1st October 08 - 31st December 08 22.74

I have arranged for these amounts to be credited as shown in the enclosed statement, and I have also added an additional 25 as a goodwill gesture.

I must however draw your attention to the fact that we only pay interest at a rate of 2.5% below BOE base rate quarterly, this is also subject to a minimum of 5. I have enclosed a copy of our Terms and Conditions which shows this. Derek

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