Splitting an ISA

Lopo

Nope - its pretty much standard functionality for (good APR based) Fixed Rate ISA's to charge you a penalty (30-90 days) on interest due to you. Remember all the funds have been transferred to the FRISA, and so, should I take even 0.01p out from it, it would cost me 90 days of interest that would never reach the ISA account in the first place - so I couldnt pay for it from elsewhere even if I wanted too, terms of the FRISA agreement would have been broken.

Some FRISA accounts are notice based accounts, but this particular FRISA is not one of them. Duration is at least one year without touching the funds to get the good APR return...old provider stitched me up by transfering all the funds across when it should have been just a partial transfer leaving all my funds locked in effectively...I stung the original provider back for the potential 90 days of lost interest I would take a hit for should I then have needed access to any of the funds.

Quite fairly I think so too and they got of lightly I would say...Bear in mind they removed funds and closed account without any formal consent by me, one perhaps for the Ombundsman would have been keen to hear about. Often wondered what would have happened if I escalated it further. Bank failed to adopt basic checks sadly.

Original provider offered to attempt to unwind the errors and recall from new provider, but it would have been a long drawn out process needing intervention from myself along with significant contact with Rev&Customs with all parties.

Naturally was reluctant to follow this activity as they demonstrated massive incompetance to begin with just figuring out what had happened initially...