Clarity on ISA transfer from Icesave to another bank/building society

Megalomaniac

The email that was sent states:

For ISA holders, the same process will apply as for instant access account holders. An ISA certificate will follow by post to allow you to reinvest that sum in an ISA with another provider. The money you held in your ISA will not lose its tax-free status if you reinvest by 5 April 2009. You should receive your ISA certificate within 2 weeks of claiming compensation using the electronic process and you will have to give this certificate to your new ISA provider when you open your ISA with them. You should ask for an ISA transfer form from your new ISA provider.

Has anyone contacted the FSCS for clarity on the part regarding the ISA transfer form needing to be completed (despite us eventually being in the possession of an ISA certificate). Does this mean we have to enter the account details of our current account or our Icesave account?

Transalper

The FSCS are just learning to deal with this, never before practiced problem and quite frankly I don't think some of the staff in some banks have a clue.
Check post,

http://forums.moneysavingexpert.com/showthread.html?p=15598947#post15598947

COCO

Transalper wrote: »

The FSCS are just learning to deal with this, never before practiced problem and quite frankly I don't think some of the staff in some banks have a clue.
Check post,

http://forums.moneysavingexpert.com/showthread.html?p=15598947#post15598947

Some staff?, some Banks?, trust me all staff, all banks are clueless, I have been into Natwest to explain the situation of the Icesave ISA's, after an hour I got nowhere, there were actually 2 of there staff that had never heard of Icesave???.
I rang Bradford and Bingley to ask if the rate on my account had dropped, "yes sir it is now 5.85% because you choose monthly interest payments, if you had choose anual it would be 6.51%", so i asked if 5.85% monthly equates to 6.51% anually,"yes sir that is correct".

Help!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!:eek:

Milarky

Megalomaniac wrote: »

Has anyone contacted the FSCS for clarity on the part regarding the ISA transfer form needing to be completed (despite us eventually being in the possession of an ISA certificate). Does this mean we have to enter the account details of our current account or our Icesave account?

An investment certificate for ICEsave ISAs should work exactly like those certificates issued on TESSA maturities on the 90's. With these you took the cerificate to a provider and gave them your own cheque. It would be like a special one-off ISA allowance - no 'transfer' as such and ought to be eligible to open any ISA (i.e.. including those which say 'new money only')

Paul_Herring

I rang Bradford and Bingley to ask if the rate on my account had dropped, "yes sir it is now 5.85% because you choose monthly interest payments, if you had choose anual it would be 6.51%", so i asked if 5.85% monthly equates to 6.51% anually,"yes sir that is correct".

Help!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

He's right. See http://www.moneysavingexpert.com/banking/interest-rates#AER (Monthly vs Yearly section.)

Baldur

Paul_Herring wrote: »

He's right.

He is?

Off the top of my head, 5.85% gross monthly is likely to give an AER of around 6.1%, rather than 6.51%

Paul_Herring

Baldur wrote: »

He is?

Off the top of my head, 5.85% gross monthly is likely to give an AER of around 6.1%, rather than 6.51%

Oops - indeed. I thought they were querying the difference in rates, not the actual percentages, so I didn't bother checking them.

5.85% monthly is 6.01% AER
6.51% AER is 6.33% monthly.

Icesaver

I've been looking around for a good place to put my ISA as we all have, my first two thoughts were Nat West when they were advertising the 7.32% and NR 6% fixed. The former has had its rate dropped, and seems to have other problems if you read through postings elsewhere here. NR pulled their fixed rate yesterday.

It occurred to me that as my current account holder (Smile) also offer a Cash ISA, though the rate is a mere 4.25% probably about to drop further since the BOE 1.5% cut, it might make things a lot smoother to keep our ISA money with the same institution that our compensation is transferred to. Also there will be many trying to open new ISAs with the best rate paying accounts adding to their workload and increasing the chance of something going wrong (ever the pessimist) and it might be better for now to accept a low rate of interest for the next couple of months, until things settle then look around for a better rate later.

I've secure messaged them to ask advice on whether to set up my ISA now or when I've received the certificate.

Icesaver

Had to wait a few days for my reply..they obviously needed to think about this one!

The best thing for you to do is complete an ISA application now, then when you receieve your ISA funds the transfer can be made more or less straight away.

When you receive your welcome pack from smile, there will be an ISA transfer letter included. Please complete this, then when you receive your ISA funds please send the form to us at: Once we receive this we can then transfer the funds to your smile ISA.

Should be easy???

OK Interest rate not as good as elsewhere but noticing other rates have dropped recently and NR fixed rate now only 5% So might not be that bad after all

realaledrinker

I opened a YBS eISA the weekend before Icesave went bust & sent off paperwork to them/Icesave to effect a transfer.

I now have the YBS eISA open & ready to receive a transfer. However, i am very wary about bouncing the £32K I am expecting in my current a/c from FSCS on Monday straight onto that ISA account. Under normal circumstances I can't see YBS's systems accepting a BACS transfer over £3,600 as that would breach the ISA rules - all transfers would normally be deposited via a cheque direct from the transferring bank.

Although the YBS customer services lady said that there should be no problem & she would put a note on the account, "should" always rings alarm bells with me.

Baldur

realaledrinker wrote: »

,,,,all transfers would normally be deposited via a cheque direct from the transferring bank.,,

The required documentation, from the old ISA manager, declaring the ISA status of the transferred funds would also normally accompany them.