Yearly Interest on a cash ISA

#Dean#

This is probably a very stupid question!

I have a cash ISA with Egg.com and as the rate has gone down from 6.05% to 4.55% I'm thinking of transferring it (probably to Natwest).
Interest on the Egg isa is paid yearly - will I still get interest for the time the money was in the account and when will I get it. Also if I close the account how will they pay? Will they calculate the interest and transfer it with the money in the account?
Thanks in advance for you help.
Dean

Lokolo

#Dean# wrote: »

This is probably a very stupid question!

I have a cash ISA with Egg.com and as the rate has gone down from 6.05% to 4.55% I'm thinking of transferring it (probably to Natwest).
Interest on the Egg isa is paid yearly - will I still get interest for the time the money was in the account and when will I get it. Also if I close the account how will they pay? Will they calculate the interest and transfer it with the money in the account?
Thanks in advance for you help.
Dean

That is all correct yes. Well thats how they should do it. They may transfer the existing money, keep the ISA open then pay the rest of the interest at the end of the year. But not likely.

CLAPTON

You can transfer the egg ISA to another ISA provider;
but you MUST not close it and withdraw the money; rather you must ask the other provider to transfer it to themselves.

Egg will calculate your interest up to the time of transfer and add it to the transfer value and close your account.

#Dean#

CLAPTON wrote: »

Egg will calculate your interest up to the time of transfer and add it to the transfer value and close your account.

That's what I hoped, thanks.

dupuytren

Egg processed my transfer quickly. I sent in my application form for Birmingham and Midshires fixed rate ISA on the same day as the transfer order from Egg 2 days ago just before 5pm via special delivery. I got an email from Egg saying that my money has been transferred across with the interest accrued, and that my ISA with them is now closed. While I'm amazed by the level of efficiency, my BM ISA account is not properly opened yet so I hope the money won't be lost in cyberspace. Going to give BM a ring tomorrow to check! I am hoping transfer to BM takes a few days from Egg as I am not sure how this normally happens ie cheque or BACS.

#Dean#

Thanks, that's exactly what I wanted to hear :-)