first direct transfer question

Frugality_2

I'd like some help.

My Abbey ISA matures in a few days, and I'd like to transfer to FD but from reasing above it doesn't seem worth it as I'll lose money due to their delays.

I also don't like the sound of the beuarocracy. ..

..any positive experiences?

lisyloo

What rate will you be on when your ISA matures?
If the rate is dreadful then it's well worth losing a few pennies whilst the "cheque is in the post" for a better rate.
A lot of companies send cheque by post, so you either have to put up with it or find a ocmpanie that inteprets the rules differently and does it on-line.

Frugality_2

well it's already on a paltry 1.5% ish and it probably drops to 0.2%.

So like you say I don't have much choice, I only have 6.5k in my ISA but I will want the best rate and I guess FD is the only one around.

Is there a penalty on withdrawing from FD to a more competitive provider if rates boost in say 6 months?

The_Enforcer

No penalties, it's an anomaly in being an instant access account with a fixed rate for just over a year and therefore no penalties. However, you WILL definitely need to transfer out at the end of the fixed rate period when the rate drops.

lisyloo

Right I'm now able to update on mine.
It dissapeared from Natwest on Friday 16th and appeared at FD on 26th.
So 10 days in total.
It's just my luck that it goes Fri->Mon so I missed out on two weekend, but that always seems to be the way doesn't it.

amcluesent

e-mailed FD and they said expect 10 working days!

I guess if the rates were marginal it wouldn't be worth it, but given the gulf between FD e-ISA and Nationwide cash ISA rates...

lisyloo

Yes I think you are right.
355 at a good rate is better than 365 at a bad rate.
Usually there is no contest.
It's just a bit sh**e the way they do things.

oldfella

my memory might be wrong here - but I thought there was something in the ISA regulations that they had to apply interest from the date of receipt of the cheque ?

lisyloo

Even if that is true (I don't know if it is) then there will still be a delay whilst it is actually in the post and remember you will lose interest on Sundays and bank holidays and Royal Mail won't be doing anything with your letter.

It's a bit rubbish but to be honest a handful of days is a minor issue for most people and certainly does not mean it's not worth swicthing.

oldfella

info here .. http://www.bsa.org.uk/docs/presspdfs/isa_guidelines.pdf

10 days is the time the existing provider has to action the transfer,
the new provider has 5 days to apply the money to your account.