First Direct e-ISA vs Manchester BS Premier ISA 35 vs Chelsea BS Postal 30

Porcupine

I filled out the web form for the First Direct 3% ISA last week, but having looked a bit further it looks like a slow application process, especially in these times of postal strikes:

1. You fill in your name and address on the website
2. They send you a form to fill in and sign
3. You send it back
4. They set up your account and send you a transfer form
5. You fill in the transfer form and send it back
6. They contact the original ISA provider for the funds
7. The original ISA provider sends them a cheque
8. They receive the cheque
9. They credit the cheque

And after all that only steps 6-9 are covered by the 30-day transfer target (though apparently they'll add interest if you ask from step 8). Meanwhile I'm getting 1.75% in my existing account, which isn't great (but could be worse).

So I wondered if there was a quicker way.

The Manchester Premier ISA 35 and the Chelsea Postal 30 accounts are both also 3% and require a month's notice, which I can cope with. There's no fixed rate guarantee, but the Manchester only has a 0.7% bonus rate so if I fall off the end of the bonus period (waiting for a transfer, say) it's not the end of the world. The Chelsea is a straight variable rate account with no bonus.

For both all the forms are on the website to print off. That should mean that applying is quicker.

After some further digging it seems both have form for closing issues then dropping rates. But then the First Direct ISA drops to 0.2% after a year so, while the rate is fixed for the year, you really get penalised if you leave it in there too long.

So any comments on the relative merits of First Direct, Manchester BS and Chelsea BS and these accounts?

Baldur

My current 6.5% FRISA is with Manchester (being transferred into my 3.75% LTSB FRISA at the end of October). I can only speak for their efficiency as far as my account opening and the upcoming transfer is concerned - their customer service has been exemplary in both situations.

In the past, I have had many (non-ISA) accounts with Chelsea and have also found their customer service to be excellent - whenever their rates have been uncompetitive I have voted with my feet.

anna42hmr

Porcupine wrote: »

I filled out the web form for the First Direct 3% ISA last week, but having looked a bit further it looks like a slow application process, especially in these times of postal strikes:

1. You fill in your name and address on the website
2. They send you a form to fill in and sign
3. You send it back
4. They set up your account and send you a transfer form
5. You fill in the transfer form and send it back
6. They contact the original ISA provider for the funds
7. The original ISA provider sends them a cheque
8. They receive the cheque
9. They credit the cheque

And after all that only steps 6-9 are covered by the 30-day transfer target (though apparently they'll add interest if you ask from step 8). Meanwhile I'm getting 1.75% in my existing account, which isn't great (but could be worse).

?

hi

i have started the process of opening the FD account, however it didnt take very long for the forms to be sent to me (3 or 4 days from online to me receiving the forms, and the transfer form was included with the paperwork to send back them so it appears that steps 2-5 are covered in one go. and was fairly quick for me for that stage anyway.

also fd isa is fixed until 9th november 2010 whereas manchester building society and the same with chelsea building society so depending on speed of transfer you may get a little longer on the fixed interest.

also chelsea is only 3% if you have more than 6,000 for less its 2.6% (also you have to give notice of 60 days to withdraw during the term and if you dont give notice there is an interest penalty

manchester is 35 days notice and also seems to not be fixed, (0.75% bonus in first year, doesnt specify its fixed at the 3% it is currently.

First direct doesnt seem to have any notice for withdrawals or penalties


Northern rock have a fixed rate 3% isa as well fixed till october 2010 you may want to look at

Porcupine

Thanks, useful to know about FD. Perhaps the forms will drop on my doormat soon.

The Northern Rock ISAs seem to be limited-access only - you can take money out but with 60 days loss of interest. There are better fixed rates out there if you're willing to pay withdrawal penalties. The Chelsea Postal 30 is 30 days notice, isn't it? (I did once see a Scarborough account with a catch about transferring out, so it's possible I've missed something). I do have more than £6K so that's not a problem.

Both Manchester and Chelsea are variable, so a little more risky.

anna42hmr

Porcupine wrote: »

The Chelsea Postal 30 is 30 days notice, isn't it? .

sorry yes it is didnt notice the typo when i put 60 instead of 30

Porcupine

Had my First Direct form arrive yesterday... no sign of a transfer form, I must tick a box and they'll send me a 'transfer pack'. Ah well, I've posted the form anyway. Hopefully it won't be too long... life is a bit busy at the moment to do the whole application process again elsewhere. And I think I can probably get around the way the rate falls off a cliff by next time making sure I start the transfer process about 10-10.5 months in, to give plenty of time for delays.

Simstwins

Porcupine wrote: »

Had my First Direct form arrive yesterday... no sign of a transfer form, I must tick a box and they'll send me a 'transfer pack'. Ah well, I've posted the form anyway. Hopefully it won't be too long... life is a bit busy at the moment to do the whole application process again elsewhere. And I think I can probably get around the way the rate falls off a cliff by next time making sure I start the transfer process about 10-10.5 months in, to give plenty of time for delays.

I was in this position at the end of last week, and to be honest the transfer mandate arrived back with me pretty much by return of post (I must be in an area unaffected by the postal delays at the moment). This was returned to them, and I believe is in course of action with my existing ISA manager - lets see how long that takes!!!

You then get a seperate letter and need to contact them to set up security information, and to be able to obtain access to the account details for the new e-isa account- which they were able to confirm over the phone. Making this years subscription this week - so in a little over 10 days from initial account application via the internet.

Wobblydeb

I have an e-ISA with FD and transferred a couple of older ISAs into it, from Barclays and HSBC.

Throughout it all FD seemed really efficient and everything went through easily. I did the Barclays ISA first, which took a while (all Barclays fault - I will never have an account with them again, after my experience opening the blooming ISA in the first place).

I phoned up a couple of months later to ask for another transfer form to move the HSBC ISA, and that came by return of post. That went through much quicker (a couple of weeks I think) and I've been really impressed with FD so far.

lisyloo

FD have a an excellent record on service.
I ticked a box for a "transfer" pack on the on-line application and it came in 3-4 working days altogether.

Of course they have no control over the out going lender.

EDIT : I am wondering whether those of us that are already FD customers got the forms together, whereas those that aren't have had them seperately. Either way FD seem to send things out promptly.

billieboy_2

lisyloo wrote: »

FD have a an excellent record on service.
I ticked a box for a "transfer" pack on the on-line application and it came in 3-4 working days altogether.

Of course they have no control over the out going lender.

I've just re-checked the online application form and there appears to be no box to tick for a transfer pack . Not on my one anyway.

lisyloo

I'm guessing your not an existing customer.

I think FD existing customers can get the paperwork all in one go (both my husband and I did).
But if you aren't already a customer you have to open the account first.
Partly guess work, but it looks that way to me.
Either way they are pretty quick off the mark at posting things.