Loss of interest when transferring ISA's ??

steveksullivan

Can anyone tell me whether there is a period when you transfer from one ISA provider to another when your money is 'in transit' and therefore earning no interest ?

I asked the 'service desk' of one of my ISA providers and was told that this was the case and it's put me off transferring .... I've recently been told this is not the case ...... can anyone confirm one way or the other ?

Thanks in advance ...........

Debt_Free_Chick

Usually it's in transit for, on average, three days - the same with any other transfer (not DD) between one bank acccount and another, if they are not at the same branch.

It might to possible to arrange a telegraphic transfer, which takes place on the same day, but most banks charge about £25 for this.

derrick

As I understand it transfers have to be done by cheque, to continue the paper trail re money laundering regs, although most new providers start interest from the day it leaves the old provider so you should not lose any days interest or 3 days depending on postal service, my recent transfer from Market Harborough to Halifax was received by Halifax on 22/2/06 and showed it credited on 21/2/06 when I queried this I was told yes that is correct, so I was not complaining.

snezhinskproject

Does anyone know what Alliance & Leicester are like on this. I am considering moving my Nationwide ISA into A&L but keep reading about it taking 3 weeks or something ridiculous.

mary

I applied in A&L branch to transfer 4 x ISAs from Halifax on 1st April. They are still sitting there in Halifax. I checked with Alliance and Leicester where they should be going. They sent off the form in branch, but have no record of having sent it off - they don't do that. So rang Halifax to check whether they had received notification to transfer, nothing marked against my name at all. Then the Halifax guy said he could transfer it over the phone, but their system won't accept the 11 digit A&L ISA number. So I now have to reapply and the manager at the A&L told me that the transfers are made by cheque anyway!

MiserlyMartin

Alliance and Leicester: My experience so far:

Transfer 1: cheque left old ISA 22/3/06 - appeared @ A&L 24/2/06. This was backdated at A&L to 23/2/06. (LOSS OF INTEREST 1 DAY)

Transfer 2: cheque left old ISA 29/3/06 - appeared @ A&L 12/4/06!. This (and I should hope so) was backdated to 31/3/06 (LOSS OF INTEREST 2 DAYS)

I have two more transfers pending. One said it left last week so any day now at A&L and the other still waiting to hear from Abbey about the transfer.

I have to admit I was getting worried about the time it took for transfer 2 to arrive seeing as 1 took no time at all, but they must still have a big backlog.

Its worth noting that the first transfer was a large amount and the other less than a grand. They might give priority to larger amounts, I'll let you know how quickly the other two go.

I would recommend transferring everything you have if you have the 5.2% one.

steveksullivan

........ so I'm looking for the link to thank individuals......)

seems that I was right to have some misgivings but overall people seem to get transfers done without too much loss of interest.

OK .... so the question now is ..... which is the best deal out there accepting transfers in ..... looks like NS&I for the current year, but they're not accepting transfers

Can anyone advise on this ?

Cheers in advance ....

derrick

steveksullivan wrote:

........ so I'm looking for the link to thank individuals......)

seems that I was right to have some misgivings but overall people seem to get transfers done without too much loss of interest.

OK .... so the question now is ..... which is the best deal out there accepting transfers in ..... looks like NS&I for the current year, but they're not accepting transfers

Can anyone advise on this ?


The HALIFAX are doing a cash ISA at 4.74% varible, if you transfer in you can then transfer to their fixed rate ISA at 5%, (you might be able to transfer straight to the fixed rate? you choose the fixed period between 1-4 years
If you go to THIS PAGE, the Halifax will call you back and you can discuss with them.