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  • FIRST POST
    • TheGardener
    • By TheGardener 16th Oct 17, 2:35 PM
    • 2,167Posts
    • 2,051Thanks
    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 1
    • Alexland
    • By Alexland 16th Oct 17, 2:41 PM
    • 647 Posts
    • 406 Thanks
    Alexland
    • #2
    • 16th Oct 17, 2:41 PM
    • #2
    • 16th Oct 17, 2:41 PM
    You can move ISAs between providers during the tax year and they will share details of your contributions so far this tax year so you will still have the ability to use the remainder of your allowance with the new provider.

    Just pick a new provider, check they allow transfers in and then ask them to perform the transfer.

    Alex
    • xylophone
    • By xylophone 16th Oct 17, 2:45 PM
    • 23,400 Posts
    • 13,600 Thanks
    xylophone
    • #3
    • 16th Oct 17, 2:45 PM
    • #3
    • 16th Oct 17, 2:45 PM
    http://www.thisismoney.co.uk/money/saving/article-1583864/Best-savings-rates-Isas-Cash-Isa-accounts-fixed-rate-Isas.html
    • Mr K
    • By Mr K 16th Oct 17, 4:16 PM
    • 1,107 Posts
    • 659 Thanks
    Mr K
    • #4
    • 16th Oct 17, 4:16 PM
    • #4
    • 16th Oct 17, 4:16 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?
    Originally posted by TheGardener
    Have you checked out their Defined Access e-ISA paying 1.11% (instant access with a limit of 3 withdrawals a year)?
    https://uk.virginmoney.com/savings/find/defined_access_e_isa_issue_16/overview/

    Might be easier than moving as the transfer would be instant.
    • TheGardener
    • By TheGardener 17th Oct 17, 8:36 AM
    • 2,167 Posts
    • 2,051 Thanks
    TheGardener
    • #5
    • 17th Oct 17, 8:36 AM
    • #5
    • 17th Oct 17, 8:36 AM
    A defined e-access is what I already have - why do they bump you off one to offer another with the same rate, if I'm going to go to the trouble of moving it - then I'll move it to another supplier. I haven't made any withdrawals so its not the 'defined' bit that's caused the rate drop. Just a bit miffed really. I already have fixed rate bonds with virgin.
    • Alexland
    • By Alexland 17th Oct 17, 8:51 AM
    • 647 Posts
    • 406 Thanks
    Alexland
    • #6
    • 17th Oct 17, 8:51 AM
    • #6
    • 17th Oct 17, 8:51 AM
    The savings market is all about getting punters through the door with best buy rates then taking the customer through a journey to lower rates (while launching a new product with better rates to attract new punters) hoping the existing punters won't notice or care enough to leave.

    Ideally the customer will continue to perceive the account to have a special quality (using bespoke terminology such as e-access) as they seek to reaffirm their original reason for opening it or they linger onto happy memories of the earlier interest payments.

    So don't hold it against the providers (it's how you are getting access to unsustainable rates) just keep playing your part as the exception in the game moving to whatever will give the best return with the same or a new provider.

    Don't get confused - it's not personal, loyalty doesn't pay (even when it does this is usually in support of cross selling) and it should be all about the money.

    Alex
    Last edited by Alexland; 17-10-2017 at 12:26 PM.
    • Mr K
    • By Mr K 17th Oct 17, 10:31 AM
    • 1,107 Posts
    • 659 Thanks
    Mr K
    • #7
    • 17th Oct 17, 10:31 AM
    • #7
    • 17th Oct 17, 10:31 AM
    A defined e-access is what I already have - why do they bump you off one to offer another with the same rate, if I'm going to go to the trouble of moving it - then I'll move it to another supplier. I haven't made any withdrawals so its not the 'defined' bit that's caused the rate drop. Just a bit miffed really. I already have fixed rate bonds with virgin.
    Originally posted by TheGardener
    Yes, they all play the same game though, tbh its very easy to switch to the new account, you just apply and as part of that you can transfer in the old isa immediately.

    Agreed though, it's a pain in the backside.
    • topgearfan08
    • By topgearfan08 17th Oct 17, 1:58 PM
    • 161 Posts
    • 37 Thanks
    topgearfan08
    • #8
    • 17th Oct 17, 1:58 PM
    • #8
    • 17th Oct 17, 1:58 PM
    I was thinking of simply moving it from issue 7, to issue 16. However this year I opened a stocks and shares isa with cavendish....


    Based on the below, I assume I am unable to transfer o this, as it will result in a second isa subscription this year?






    Before completing your application please review the declaration below. If all details are correct select 'Confirm', alternatively select 'Back' to amend your details.
    Tax Year: 2017/2018
    I apply to subscribe for a cash ISA for the above tax year and to contribute to it for each subsequent tax year until further notice (subject to the terms and conditions of the account). Note this is an option, not an obligation.
    I declare that:

    - All subscriptions made and to be made belong to me
    - I am 16 years of age or over
    - I have not subscribed, and will not subscribe, more than the overall subscription limit in total to a Cash ISA, a Stocks and Shares ISA, an Innovative Finance ISA and a Lifetime ISA in the same tax year
    - I have not subscribed and will not subscribe to another Cash ISA in the same tax year that I subscribe to this Cash ISA
    • eskbanker
    • By eskbanker 17th Oct 17, 2:33 PM
    • 5,786 Posts
    • 5,670 Thanks
    eskbanker
    • #9
    • 17th Oct 17, 2:33 PM
    • #9
    • 17th Oct 17, 2:33 PM
    No, if you use the ISA transfer process to move all of your current year contributions from issue 7 to issue 16, that doesn't count as subscribing so is OK.

    Not only that, but after you've transferred, you can subsequently subscribe to the new one if you have any of your annual allowance left, as the new one effectively becomes your cash ISA for the year, as if you'd paid into it all along....

    That last line of the declaration is clumsily drafted though, so this isn't immediately obvious!
    • Novice investor101
    • By Novice investor101 17th Oct 17, 9:05 PM
    • 54 Posts
    • 18 Thanks
    Novice investor101
    Same for me. I just went to my online account, opened the issue 16 & ticked the box to transfer the existing ISA into the new one. Did it in about 30 seconds. Just waiting on the confirmation, but I'm not expecting any problems.
    • G_M
    • By G_M 17th Oct 17, 10:22 PM
    • 41,883 Posts
    • 48,467 Thanks
    G_M
    If you have online access for your current Virgin ISA (issue 5?), simply

    * log on
    * scroll down to the 'open new account' option, and then
    * select the latest ISA (issue 16, which pays 1.1)
    * complete the application
    * when asked if you want to fund it from an existing Virgin ISA, select 'yes'
    * select your existing ISA from the drop-down menu

    Virgin will then immediately
    * transfer your money to the new issue 16 account
    * close your issue 5 account

    Your new issue 16 account will have the same account number/sort code.

    It's quick, easy, instant.

    Keep an eye out for issue 17 which will doubtless come along with a higher interest rate - so repeat the process!
    • Keep pedalling
    • By Keep pedalling 18th Oct 17, 1:28 AM
    • 3,925 Posts
    • 4,279 Thanks
    Keep pedalling
    The savings market is all about getting punters through the door with best buy rates then taking the customer through a journey to lower rates (while launching a new product with better rates to attract new punters) hoping the existing punters won't notice or care enough to leave.

    Ideally the customer will continue to perceive the account to have a special quality (using bespoke terminology such as e-access) as they seek to reaffirm their original reason for opening it or they linger onto happy memories of the earlier interest payments.

    So don't hold it against the providers (it's how you are getting access to unsustainable rates) just keep playing your part as the exception in the game moving to whatever will give the best return with the same or a new provider.

    Don't get confused - it's not personal, loyalty doesn't pay (even when it does this is usually in support of cross selling) and it should be all about the money.

    Alex
    Originally posted by Alexland
    Quite how they get so money punters to keep adding to cash ISA with such exreamlynlow rates is beyond me, cash ISAs have been pointless for so long they should be dead by now.
    • owitemisermusa
    • By owitemisermusa 18th Oct 17, 11:06 AM
    • 934 Posts
    • 278 Thanks
    owitemisermusa
    This thread has been very informative, thanks to all.
    Can anyone suggest how to calculate the loss of interest when one uses the fixed rate ISA?
    Tempted by the 1.51% fixed rate with 60 day loss of interest on amount withdrawn.
    Thanks.
    Tough times never last longer than tough people.
    • Mr K
    • By Mr K 18th Oct 17, 1:30 PM
    • 1,107 Posts
    • 659 Thanks
    Mr K
    This thread has been very informative, thanks to all.
    Can anyone suggest how to calculate the loss of interest when one uses the fixed rate ISA?
    Tempted by the 1.51% fixed rate with 60 day loss of interest on amount withdrawn.
    Thanks.
    Originally posted by owitemisermusa
    Roughly:-

    your amount multiplied by 0.0151 divided by 365 then multiply by 60 (i think !).

    Personally i wouldn't touch fixed rates at the moment with interest rates on the way up. Especially with one that is less than inflation, a guaranteed loss.
    • Mr K
    • By Mr K 18th Oct 17, 3:49 PM
    • 1,107 Posts
    • 659 Thanks
    Mr K
    Have you checked out their Defined Access e-ISA paying 1.11% (instant access with a limit of 3 withdrawals a year)?
    https://uk.virginmoney.com/savings/find/defined_access_e_isa_issue_16/overview/

    Might be easier than moving as the transfer would be instant.
    Originally posted by Mr K
    Well the Defined Access E-ISA Isa 16, didn't last long, 6 days before its been withdrawn to new applicants !
    • RG2015
    • By RG2015 18th Oct 17, 4:03 PM
    • 472 Posts
    • 215 Thanks
    RG2015
    For those with a Virgin Money account there are some great deals not available to the general public.

    For example, 1.81% on a 2 year fixed ISA and 2.50% on a 5 year fixed ISA.

    Just scroll down to "view savings range" towards the bottom of the main page. I don't imagine they will be there for long.
    Last edited by RG2015; 18-10-2017 at 4:08 PM.
    • owitemisermusa
    • By owitemisermusa 18th Oct 17, 7:10 PM
    • 934 Posts
    • 278 Thanks
    owitemisermusa
    Well the Defined Access E-ISA Isa 16, didn't last long, 6 days before its been withdrawn to new applicants !
    Originally posted by Mr K
    Whoa!!!! Gone already?

    Might just fix and take the hit as it comes...
    Tough times never last longer than tough people.
    • Kernel Sanders
    • By Kernel Sanders 18th Oct 17, 7:22 PM
    • 3,182 Posts
    • 1,317 Thanks
    Kernel Sanders
    For those with a Virgin Money account there are some great deals not available to the general public.

    For example 2.50% on a 5 year fixed ISA.
    Originally posted by 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?
    • Novice investor101
    • By Novice investor101 19th Oct 17, 8:50 AM
    • 54 Posts
    • 18 Thanks
    Novice investor101
    Glad I did my sign up to issue 16 the day I got the email! I was gonna leave it til today...
    • grahamgoo
    • By grahamgoo 19th Oct 17, 1:49 PM
    • 279 Posts
    • 145 Thanks
    grahamgoo
    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.
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