Do I lose interest if I transfer isa?

Lushlady_2

Hello. Please be gentle, this is my first post!!!

I have £3600 to put into a new cash isa, I have not used any of my allowance for this tax year.

I do have about 10k in an old Halifax Isa which I was thinking of transferring into the new isa that I open.

My question is, if I transfer my money from the Halifax will they pay any interest owing to date (interest is usually paid in April at end of tax year) or do I lose the interest that I have earnt between April and Sept this year because I have transferred my money out.

Thank you xxx

Lokolo

No they will either keep the account open until you get interest (unlikely) or transfer all monies including interest not shown, into the new account (more likely).

runciblespoon

Welcome, Lushlady

The way transfers usually work is that New Provider writes to Old Provider. Old Provider sends a cheque in the post to New Provider, which New Provider deposits into the new ISA. So you will lose a few days worth of interest as the transfer happens. If the transfer goes wrong and someone loses the cheque, your addresses don't match or similar (or one bank is plain inept), then it might be up to a month between Old Provider writing the cheque and New Provider cashing it. So there's a risk you might lose some interest over that period.

will-in-estoril

Some providers have a better track record than others in processing transfers. For example, Nationwide (with whom I bank) have received many complaints, whilst other institutions, such as Skipton or Kent Reliance, are excellent. (Skipton, who have experienced understandable backlogs on a recent but now closed issue backdate interest to 3 days following receipt, so that you do not lose out.)