Maturing West Bromwich Fixed Rate ISA

matthew57 · 4 March 2010 at 1:22PM

Had a letter from the WBBS as my fixed rate ISA is about to mature. They have offered the option to transfer into a new fixed term ISA. They have not offered the option to transfer into a non fixed term account. I want to transfer the amount to another ISA provider, but will lose 100 days interest if I transfer from the new fixed term account. It seems like they have the shackles on me after opening an account for one year only. I looks like sharp practice to me - is this the usual policy among providers does anyone know? Is there really no alternative?

Mickygg · 4 March 2010 at 1:58PM

Yes, pretty much all ISA fixed rate periods come with an interest penalty if you don't keep your money until maturity. However 100 days interest for a 1 year fixed is higher than most.
Depending on the rate you have been offered, there are several instant access ISA's around and 1 year deals that offer less than 100 days interest penalty.
Surely as soon as your ISA matures you will then be free to transfer without a penalty as long as you don't automatically roll into another fixed rate bond?

matthew57 · 4 March 2010 at 5:16PM

This is what I am not happy about. The current account comes with a 60 day penalty. Apart from receiving the closing balance (which I do not want as I would lose that year's tax free status) the only other option is to roll into another fixed term which comes with the 100 days penalty. I accept that there is a penalty when accessing this year's account, but after one year I think I should be able to transfer the balance to another provider without penalty.

Mickygg · 4 March 2010 at 6:52PM

I would give them a call and explain the situation - see if you can in any way transfer the balance on maturity to another provider without it rolling into the 60 day or even worse 100 day penalty.

They do seem to have you there. Most ISA's allow the fixed rate ISA to roll into their instant access one (usually paying little or no interest) but at least you can transfer with no penalty.

Trouble is when you open them up, you can't think of everything.

alastair_h · 4 March 2010 at 8:39PM

matthew57 wrote: »

This is what I am not happy about. The current account comes with a 60 day penalty. Apart from receiving the closing balance (which I do not want as I would lose that year's tax free status) the only other option is to roll into another fixed term which comes with the 100 days penalty. I accept that there is a penalty when accessing this year's account, but after one year I think I should be able to transfer the balance to another provider without penalty.

My FRISA with Julian Hodge Bank has recently matured. I opened another ISA account and filled in the paperwork marking it as "Transfer full balance & interest on account maturity", this went through with no problems. I think JHB's T&C's allowed a 2 week window to carry out a transfer or re-invest in another FRISA with them.

I'd check the t&c's regarding transfers http://www.westbrom.co.uk/static/TermsAndConditions.pdf see page 16 point 3, I don't think they can roll your ISA into a new one without giving you a reasonable amount of time to transfer out (set the new account up a few weeks before maturity on old account). I have been with them for 3 years now and have always found them very reasonable - give them a call and check.

Not clear upon maturity of FRISA http://www.westbrom.co.uk/westbrom/faq?id=52&FAQ_CHANNEL=2#2

matthew57 · 4 March 2010 at 11:43PM

Thanks for that Alastair. I was going to transfer out now and just lose 60 days interest. Unfortunately I didn't keep the T&Cs of the specific account, but the T&Cs of the new account do spell out that this is what they do, so I suppose it was the same last year. Still it's worth a go.

edda · 7 March 2010 at 1:47PM

The West Brom is just trying to hang on to your money - but you can get it out without any penalty. (Hope you haven't already taken a hit).

See this account here:

http://www.westbrom.co.uk/westbrom/savings.product?id=411&category=8

Phone the West Brom and ask them to transfer your FRISA to this variable ISA on maturity - instant access - paying just 0.1%.

You can then transfer it out to a better rate - and a more obliging provider. The West Brom may not like it, but it's possible.

JamesPond · 7 March 2010 at 2:30PM

My FRISA with Norwich and Peterborough matured recently. About two weeks before the maturity date, I applied for an an account with the Kent Reliance and enclosed a transfer request asking them open the account with the money from Norwich and Peterborough upon maturity.

Both these building societies were very efficient and quick, the maturity date was 25th, I received a letter dated 25th from N&P saying the had sent a cheque to my new provider, On the 26th Kent Reliance confirmed they had received the cheque and the account has been opened.

alastair_h · 7 March 2010 at 8:05PM

edda wrote: »

The West Brom is just trying to hang on to your money - but you can get it out without any penalty. (Hope you haven't already taken a hit).

See this account here:

http://www.westbrom.co.uk/westbrom/savings.product

Phone the West Brom and ask them to transfer your FRISA to this variable ISA on maturity - instant access - paying just 0.1%.

You can then transfer it out to a better rate - and a more obliging provider. The West Brom may not like it, but it's possible.

Good idea Edda, transfer to Easy Access ISA - this should allow you to transfer out and not have to pay through the nose. Try this link, above doesn't seem to work.
http://www.westbrom.co.uk/westbrom/savings.product?id=411&category=8

jonpress · 22 March 2010 at 1:00PM

I'm in the same position. On my first contact with West Brom they denied it would be possible to do anything other than transfer to another fixed rate ISA. After some discussion they agreed it would be possible to transfer to the Easy Access ISA and then sent the wrong forms. I wrote them a letter making my instructions explicit but it took two further phone calls before they were able to confirm they had received the instructions and would act on them.

Maturing West Bromwich Fixed Rate ISA

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