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  • FIRST POST
    • TheGardener
    • By TheGardener 16th Oct 17, 2:35 PM
    • 2,168Posts
    • 2,053Thanks
    TheGardener
    ISA rate cut today - how to move
    • #1
    • 16th Oct 17, 2:35 PM
    ISA rate cut today - how to move 16th Oct 17 at 2:35 PM
    Virgin sent me an email today telling me they are reducing the interest on my ISA from the end of October from 1.1 to 0.51. I opened this ISA 2 years ago but most of the contents in it were deposited this financial year. So can I now find another supplier and move the money (using ISA transfer) or should I/ do I have to wait until April?
Page 2
    • RG2015
    • By RG2015 19th Oct 17, 2:32 PM
    • 499 Posts
    • 240 Thanks
    RG2015
    I only have a regular saver so didn't know that. The one on offer to me is 2.4%, but with 180 day withdrawal penalty. Is it likewise with the higher one?
    Originally posted by Kernel Sanders
    I would have thought that a regular saver is equally as valid as any other.

    The "View savings range" drop down menu is below your account summary on the front page where is says "Open a savings account"

    I have just checked and the 2.5% 5 year ISA is still there but the early withdrawal penalty is also 180 days interest on the amount taken out.
    • SoozyJ22
    • By SoozyJ22 22nd Oct 17, 7:03 PM
    • 3,033 Posts
    • 21,686 Thanks
    SoozyJ22
    Does anyone know if I can do a partial transfer from my defined access cash ISA to one of the fixed rate Virgin ISAs? I've read the product information but can't find any mention of this. I'm thinking of hedging my bets and putting half in a fixed rate account and half in a variable one.

    I've found the answer myself:

    If you'd like to move all of the money from your existing Virgin Money ISA to a new one with us, you can do this when completing your online application. Simply select the option to transfer in from another account and select the account you want to change over from the drop down list.

    If you'd like to transfer part of the money from your existing ISA, apply for the new account and send us a secure message letting us know how much you'd like to move over (simply click on "messages" once you have signed in).
    Last edited by SoozyJ22; 22-10-2017 at 7:06 PM.
    • RG2015
    • By RG2015 22nd Oct 17, 7:32 PM
    • 499 Posts
    • 240 Thanks
    RG2015
    If you'd like to transfer part of the money from your existing ISA, apply for the new account and send us a secure message letting us know how much you'd like to move over (simply click on "messages" once you have signed in).
    Originally posted by SoozyJ22
    Make sure that you open the new ISA with a zero balance and then send the secure message.

    The 2 year eISA issue 279 is still available for VM account holders at 1.81% as is the 5 year eISA issue 280 at 2.50%
    • brummierebel
    • By brummierebel 23rd Oct 17, 3:29 PM
    • 29 Posts
    • 23 Thanks
    brummierebel
    Before you all rush to switch your ISA have you considered the following?

    Two days after your interest rate drops the Bank of England are meeting and are likely to raise interest rates.

    Those rushing to switch their ISA to a fixed rate before their interest rate drops are potentially locking in their money to a lower rate than may be available after November 2nd.

    Virgin inherited a lot of savvy savers when they took over nationalised Northern Rock. They may be using psychology to lock you into a lower rate before rates rise.

    It's interesting that Virgin Money have the highest one year fixed rate on the link provided above. Have they factored in the rate increase, or will they nudge it up further after a rate increase?

    An alternative strategy would therefore be spend two days on the 0.5% rate and see what happens on 2nd November. You will have more options available than locking your money away for at least a year although you may potentially lose these 'limited time' Virgin Money ISAs.

    Without access the commercially sensitive information, as a saver, it is very difficult to know how to navigate this.
    • Paul_DNAP
    • By Paul_DNAP 24th Oct 17, 1:07 PM
    • 19 Posts
    • 23 Thanks
    Paul_DNAP
    I've had the same e-mail about my e-ISA rate dropping to 0.51%

    I've been seriously considering the 2 year fix at 1.81% but also think maybe if IRs are on the up, I might not lose out too much overall by opting for the 1 year at 1.51% and may even gain a little over the 2 years.
    Originally posted by grahamgoo

    That opens the three big questions 1) are they going up 2) by how much and 3) when will that filter through to saver rates?


    But, looking at a two year investment of that 2-yr fix versus two 1-year fixes in a row then you would need the second one year fix to be 2.11% to come to about the same at the end of the two years. If you want the two one-years to better the 2-years then you're aiming for a 2.2% account being available this time next year?


    Do we think that interest rates are going up so much that they will be offering 1 year fixes at 2.2% this time next year? I am not massively optimistic for that, so I would go for the two year fix, and if interest rates go bonkers and absolutely rocket up then maybe it will be worth sucking up the penalty and moving it, but I doubt they will move so far so fast.
    • Mr K
    • By Mr K 25th Oct 17, 11:03 AM
    • 1,107 Posts
    • 659 Thanks
    Mr K
    Before you all rush to switch your ISA have you considered the following?

    Two days after your interest rate drops the Bank of England are meeting and are likely to raise interest rates.

    Those rushing to switch their ISA to a fixed rate before their interest rate drops are potentially locking in their money to a lower rate than may be available after November 2nd.

    Virgin inherited a lot of savvy savers when they took over nationalised Northern Rock. They may be using psychology to lock you into a lower rate before rates rise.

    It's interesting that Virgin Money have the highest one year fixed rate on the link provided above. Have they factored in the rate increase, or will they nudge it up further after a rate increase?

    An alternative strategy would therefore be spend two days on the 0.5% rate and see what happens on 2nd November. You will have more options available than locking your money away for at least a year although you may potentially lose these 'limited time' Virgin Money ISAs.

    Without access the commercially sensitive information, as a saver, it is very difficult to know how to navigate this.
    Originally posted by brummierebel
    I suspect Virgin have already factored in a rate rise when offering these new fixed rates. They are just getting ahead of the competition and trying to secure deposits. Even if rates rise I don't expect anything dramatic to happen to saving rates, mortgages of course will be clobbered immediately ! Even so, I wouldn't fix for more than a year.

    Another scenario is that the BOE bottle it again, don't raise rates, Virgin realise they've jumped the gun and pull the rates.... Stick or twist
    Last edited by Mr K; 25-10-2017 at 11:15 AM.
    • linkliter
    • By linkliter 6th Nov 17, 5:17 PM
    • 6 Posts
    • 1 Thanks
    linkliter
    How pathetic of Virgin to reduce the interest rate to only 0.51% a few days before an interest rate decision?

    Could have been a ploy to encourage you to transfer to one of their fixed rate isa's.

    I will be transferring my isa but I wont be staying with Virgin, I'm far from impressed with this company, not just with this issue but their customer service over other matters has left a lot to desire.
    • Plus
    • By Plus 6th Nov 17, 5:35 PM
    • 239 Posts
    • 179 Thanks
    Plus
    How pathetic of Virgin to reduce the interest rate to only 0.51% a few days before an interest rate decision?

    Could have been a ploy to encourage you to transfer to one of their fixed rate isa's.
    Originally posted by linkliter
    To be fair, there's an interest rate decision every month. Should they never change rates because next month they might go up? After all, they have no hard information on what the Monetary Policy Committee will do until it happens (just like you or I).

    If they had been hanging on waiting for a rise, they would have been waiting over 10 years...
    • jimjames
    • By jimjames 6th Nov 17, 5:35 PM
    • 12,189 Posts
    • 10,706 Thanks
    jimjames
    How pathetic of Virgin to reduce the interest rate to only 0.51% a few days before an interest rate decision?
    Originally posted by linkliter
    When I'm getting 4.8% average on all my savings I wouldn't be bothering with a cash ISA in the first place I'm afraid
    Remember the saying: if it looks too good to be true it almost certainly is.
    • RG2015
    • By RG2015 6th Nov 17, 5:40 PM
    • 499 Posts
    • 240 Thanks
    RG2015
    When I'm getting 4.8% average on all my savings I wouldn't be bothering with a cash ISA in the first place I'm afraid
    Originally posted by jimjames
    Isn't an ISA only for those wishing to avoid paying tax on their interest?
    • jimjames
    • By jimjames 6th Nov 17, 6:06 PM
    • 12,189 Posts
    • 10,706 Thanks
    jimjames
    Isn't an ISA only for those wishing to avoid paying tax on their interest?
    Originally posted by RG2015
    Well I guess it does that, but I'd prefer to pay tax and get more interest in the first place. Irrelevant for most people when you can get £1000 of interest tax free anyway outside an ISA. Long term tax advantages of a S&S ISA are still well worth it though
    Remember the saying: if it looks too good to be true it almost certainly is.
    • linkliter
    • By linkliter 6th Nov 17, 6:16 PM
    • 6 Posts
    • 1 Thanks
    linkliter
    To be fair, there's an interest rate decision every month. Should they never change rates because next month they might go up? After all, they have no hard information on what the Monetary Policy Committee will do until it happens (just like you or I).

    If they had been hanging on waiting for a rise, they would have been waiting over 10 years...
    Originally posted by Plus


    That could have been a fair point most months but an increase was forecast to happen this time.

    And what's the excuse for such a large drop to only 0.51%?
    • AirlieBird
    • By AirlieBird 6th Nov 17, 7:01 PM
    • 706 Posts
    • 473 Thanks
    AirlieBird
    To be fair, there's an interest rate decision every month.
    Originally posted by Plus
    To be pedantic, the MPC now only meet 8 times a year. They no longer meet in January, April, July or October.
    • Mr K
    • By Mr K 11th Nov 17, 5:24 PM
    • 1,107 Posts
    • 659 Thanks
    Mr K
    Before you all rush to switch your ISA have you considered the following?

    Two days after your interest rate drops the Bank of England are meeting and are likely to raise interest rates.

    Those rushing to switch their ISA to a fixed rate before their interest rate drops are potentially locking in their money to a lower rate than may be available after November 2nd.

    Virgin inherited a lot of savvy savers when they took over nationalised Northern Rock. They may be using psychology to lock you into a lower rate before rates rise.

    It's interesting that Virgin Money have the highest one year fixed rate on the link provided above. Have they factored in the rate increase, or will they nudge it up further after a rate increase?

    An alternative strategy would therefore be spend two days on the 0.5% rate and see what happens on 2nd November. You will have more options available than locking your money away for at least a year although you may potentially lose these 'limited time' Virgin Money ISAs.

    Without access the commercially sensitive information, as a saver, it is very difficult to know how to navigate this.
    Originally posted by brummierebel
    So much for that theory ! Virgin have dropped the rate of their 1 year fixed rate ISA from 1.5 to 1.35% (after the rate rise !)
    • HUMBUG
    • By HUMBUG 13th Nov 17, 12:27 AM
    • 135 Posts
    • 27 Thanks
    HUMBUG
    So much for that theory ! Virgin have dropped the rate of their 1 year fixed rate ISA from 1.5 to 1.35% (after the rate rise !)
    Originally posted by Mr K
    Yes, strange that they've timed the rate cut so that it coincides with the maturity date of 1000's of Halifax 2yr fixed cash ISA's (I think that was the 10th November) . So my parents application form to transfer to Virgin was sent on the 8th November so I'm expecting them to return the application stating that they withdrew the offer before the Halifax maturity date. Anyhow might be best to just wait for the rates to increase (I hope).
    • HUMBUG
    • By HUMBUG 13th Nov 17, 1:49 PM
    • 135 Posts
    • 27 Thanks
    HUMBUG
    I just had a webchat with Virgin and they say it's all about date of receipt of the application and the opening of the account (even £0 balance). It doesn't matter about the date that the other bank's ISA is maturing.
    Last edited by HUMBUG; 14-11-2017 at 1:08 AM.
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