Who pays the interest on my isa ?

Cutfinger

I'm not to up on this isas and was wondering if anyone can give me some advice...

I currently have a isa with the Nationwide but i am looking to transfer it to the Natwest e-isa. I have put my £3,600 limit in this year.

My question is if i start to proceed with transferring it tomorrow who pays the interest on my money ? I think the Nationwide pays its interest annually.

Do i lose the interest Nationwide were going to pay me because i am moving my money to another isa ?

Would i be better to wait till mid April get the interest off Nationwide then transfer ?

If i am completely wrong and not understanding the situation with isas please point me in the right direction. Much appreciated.

Baldur

Cutfinger wrote: »

I'm not to up on this isas and was wondering if anyone can give me some advice...

I currently have a isa with the Nationwide but i am looking to transfer it to the Natwest e-isa. I have put my £3,600 limit in this year.

My question is if i start to proceed with transferring it tomorrow who pays the interest on my money ? I think the Nationwide pays its interest annually.

Do i lose the interest Nationwide were going to pay me because i am moving my money to another isa ?

On transfer, the old provider (Nationwide in your case) adds any interest earned up to the date of transfer of your ISA funds and transfers the original subscription plus the interest to the new provider. The new provider then pays interest from receipt of the cleared funds from the old one.

Would i be better to wait till mid April get the interest off Nationwide then transfer ?

See above, assuming that it's an easy access ISA - if it's fixed rate, you can usually only transfer on maturity without a penalty being applied.

Cutfinger

Many thanks. I'll put wheels in motion then.

MrAnalogy

Good Luck with that - we are just in the process of trying to transfer from Nationwide to the E-ISA. Having opened a current account (or savings) - a requirement, we went online to open the E-ISA. Not the easiest thing to do (unimpressed with their web application process). Note you need to put in at least £1 to open it (like you we had fully used this year's allowance, so had to put in £1 from next year's allowance!).

Trying to fill in the ISA transfer requests was also problematic. The box for the current provider account number is not big enough, and it only gives you the option to transfer whole amount, current subscription, or previous year's. Also it asks for date for the transfer - my ISA with Nationwide has a 60 day notice period - not knowign how long it will take them to process means that I have no idea when 60 days will be up!

Having telephoned I was advised to cross through dummy entries (I put 99999999 for account) and put correct reference in by hand. I also put in by hand that transfer should be after 60 day notice period. I am not overly confident that things will go that smoothly, but what can you do?

As I said - good luck, and hope things go smoothly for you.