is it worth transferring???

carpy · 20 February 2006 at 6:19PM

is it worth transferring my HSBC ISA (4.75%) to A&L (5.2%) or are there better ones?

on average how many days interest is lost on a transfer?

is there a rule of thumb to work out if it's worth transferring?

should i decide it's worth while, when is the best time to do it, before the new tax year or after, or doesn't it matter?

thanks in advance, i know i'm asking alot there!!

Milarky · 22 February 2006 at 9:58PM

For every day's lost interest, it takes 'x' days to make up where 'x' is given by:

[lower rate%]/[difference%]

[4.75%]/[5.2% -4.75%]

4.75%/0.45% = 10.6 days

So if the interregnum is about 10 days you're looking at 3-4 months to 'break even'

codetown · 23 February 2006 at 4:37PM

Of course it is convenient to do it as sson as possible, as transfer time is not going to decrease (at least in the short period).

On average trasfer to A&L loose between 1 and 3 days worth of interest, which you will recover within the first month in better interest.

The transfer will only be shown after 8-10 days on the online system, but the money at A&L is credited and starts gaining interest immediately on receipt.

carpy · 23 February 2006 at 6:31PM

thanks

so it's definitely worth doing then and the sooner the better!!

is it worth transferring???

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