Fixed rate ISA question.

hebron

My question is about when a fixed rate ISA matures.

My guess is that they put it in a lower rate ISA. That means I would have to than set up a transfer to somewhere else.

How much time do you lose between the fixed rate ISA maturing and it being transfered?

What do you do please?

Thank you.

Lokolo

Depends how long it takes you to open a new ISA to transfer it to.

If you open a new ISA to transfer it to, and fill in the form, for the transfer date put "On Maturity", that way you get it fastest as possible. But this can still be a couple of weeks.

KingL

The guidelines are that transfers should take less than 30 days.

You might save a week or so if you open the new ISA a little bit before the old one finishes and send the transfer forms in early. Most forms have a "do not transfer before date" box to prevent them accidently transferring early and breaking the conditions of the fixed term ISA. Of course, admin mistakes do happen, so there is still some risk of that happening.

There isn't a massive amount you can do really. You can be fairly sure that the variable rate the existing ISA manger puts it into will be rubbish. If you opt for another fixed rate with the same provider, presumably that will move along more quickly...

hebron

Thank you.

It seems that the benefit of the higher rates on a fixed rated can be lost to some degree on the time its in a lower account waiting to be transferred to another account.

Lokolo

hebron wrote: »

Thank you.

It seems that the benefit of the higher rates on a fixed rated can be lost to some degree on the time its in a lower account waiting to be transferred to another account.

Thats why you do transfer with Move on: MATURITY, or the date. Then it goes within a day or 2.

RayWolfe

Lokolo wrote: »

Then it goes within a day or 2.

In theory!