When to make the move?

dazeruk

I currently have £19,000 in a LloydsTSB fixed rate ISA at 6.5% which matures on the 22 May. I'm now in the position where I can seriously consider buying a house. The ISA money will be the bulk of my deposit and I also have £14,000 in other savings. As I would need access to the ISA money within the next year I think the Natwest e-ISA gives the best rate, 3.51% on balances over £10,000 with instant access.

After my current ISA matures it drops to a rate of 1% so I want to avoid as little time at that rate as I can.

My question is when should I start the transfer? Are Natwest quick at getting the money transferred or should I start the application a few weeks before the 22 May?

Milarky

dazeruk wrote: »

My question is when should I start the transfer? Are Natwest quick at getting the money transferred or should I start the application a few weeks before the 22 May?

As soon as possible. Just put a note on the transfer form to 'serve any remaining notice'. That will cause Lloyds to wait and send the cheque on, or as soon after 22 May as possible (Remember that the '30 days' standard for transfers does include any notice you may give- i.e. it's not '30 days + notice')

dazeruk

Milarky wrote: »

As soon as possible. Just put a note on the transfer form to 'serve any remaining notice'. That will cause Lloyds to wait and send the cheque on, or as soon after 22 May as possible (Remember that the '30 days' standard for transfers does include any notice you may give- i.e. it's not '30 days + notice')

Can anyone who has opened a Natwest e-ISA confirm that these instructions can be put on the transfer form?

Would these actually get sent from Natwest to Lloyds when the transfer is requested?

Would Lloyds even take any notice of them?

bagsacash

The Natwest transfer form has a date field for when you would like the transfer to happen.

If you want to be certain try filling out the form, its only a pdf form so a customer can print out and send back - link below

https://www.natwest.com/apps/secure/applicationforms_dda/asp/form.asp?appid=687

dazeruk

bagsacash wrote: »

The Natwest transfer form has a date field for when you would like the transfer to happen.

If you want to be certain try filling out the form, its only a pdf form so a customer can print out and send back - link below

https://www.natwest.com/apps/secure/applicationforms_dda/asp/form.asp?appid=687

Thanks for the advice.

derrick

Milarky wrote: »

As soon as possible. Just put a note on the transfer form to 'serve any remaining notice'. That will cause Lloyds to wait and send the cheque on, or as soon after 22 May as possible (Remember that the '30 days' standard for transfers does include any notice you may give- i.e. it's not '30 days + notice')

The notice on these accounts has been waived; -

The letter I received stated that you can transfer at any time without them invoking the penalty clause, from the letter I received 4-2-09, (my highlighting); -

Dear Mr *******
Your Lloyds TSB Fixed Rate Cash ISA - when it will mature
Your Fixed Rate Cash ISA will mature on 19/05/2009, which is the anniversary of the date that your first deposit was made into your account.

You don't need to do anything as you'll continue to earn interest at the rate of your Fixed Rate Cosh ISA until it matures in to the variable rate Cash ISA, according to your terms and conditions

If you would like to take your money out of your Fixed Rate Cash ISA before your new maturity date, you can. We won't apply the 90 day interest penalty Thank you for saving with us.

Yours sincerely

This is probably them hoping people will transfer out before maturity, therefore saving them the 6.5% interest rate!

dazeruk

Sorry one last question.

I'm assuming that interest will be paid on the date of maturity. Will this get transferred along with the balance to the new account and or does it get left behind at Lloyds?

derrick

dazeruk wrote: »

Sorry one last question.

I'm assuming that interest will be paid on the date of maturity. Will this get transferred along with the balance to the new account and or does it get left behind at Lloyds?

It will be transferred with the rest of the cash, even if that is before maturity.