Optimum ISA Transfer

Stompa

I've got a Halifax fixed rate ISA due to mature early in the new year. They seem to be offering 4 alternatives on maturity:

1. 2 Year fixed, at least 3.25%
2. 3 Year fixed, at least 3.50%
3. 4 Year fixed, at least 4.00%
4. Variable 0.20%

Now, I'm not sure I want to lock in at those rates for as long as 2 years, so will probably want to transfer elsewhere. Presumably that means that I'll have to choose option (4), then do a transfer? Does anybody have any advice on how to optimize that process? I obviously don't want it sitting in an account earning 0.2% any longer than I have to!

Thanks

cottager

I've always wondered about this 'optimum time' too when maturity dates are involved.

Seems to me a problem of moving FR > FR is if the one you want to TF to is withdrawn, like NR's was at the beginning of the week. A rate can't be guaranteed indefinitely for a withdrawn product, so some say they'll allow 30 days for the TF funds to reach them, then you'll still get the rate. But what they do if the other provider drags its feet and it goes beyond 30 days I don't know -- would they allow a little leeway or actually return your application? Maybe it varies.

On the other hand I see many people recommending getting your transfer moving well before maturity, and be sure on the form to make it clear the funds shouldn't be TF till maturity (some forms seem to accommodate this, while with others you have to add it yourself). Having not been in this situation I'm not sure how applying early squares with the 30-day 'limit' if this is a condition of the new provider receiving the funds? Say you opened a new account and 'ordered' your TF 2 weeks beforehand... there'd only be another 2 left to move the money across.

I have 2 maturing at Halifax -- one already has, and the other's due on Saturday. Cheshire BS had my application yesterday, and I'd marked the Saturday one not to be TF till after 12th, but really I think the chances of Halifax hearing from Cheshire before Saturday will be very remote, so don't think it'll matter anyway -- both accounts will have lapsed into the instant-access 0.20%. (Then there's a 3rd going to Cheshire as well, from Nationwide, also already matured.)

The only things which concern me about the TFs making it to Cheshire within 30 days is postal delays (pretty sure Nationwide only use the post, don't know about Halifax) and the Christmas/NY break in the middle of it.

alastair_h

Julian Hodge have a 1 year FRISA at 3.25% if you don't want to tie your money up for too long. I have part of my ISA with them and find them very good.
http://www.julianhodgebank.com/personal/rates/savings_rates.asp#I

You can fill the paper work in, send it off and ask it to transfer on the maturity date if you want to optimize

Stompa

cottager wrote: »

On the other hand I see many people recommending getting your transfer moving well before maturity, and be sure on the form to make it clear the funds shouldn't be TF till maturity (some forms seem to accommodate this, while with others you have to add it yourself).

Ah OK, that was the sort of info I was after, I wasn't sure if that kind of thing was possible, I'll look into it further. It's annoying that the Halifax don't have a non-fixed ISA with a somewhat better rate (though admittedly they do have the Halifax ISA Saver Direct 0.5%) where funds can be parked whilst sorting out the transfer - I guess that's a deliberate policy by Halifax.

Mikeyorks

The problem is that there aren't too many options about? I had a (2 of) 6% Halifax fixed rate ones mature earlier this year - and had to settle for a 1 year fix at 3% - and eventually was lucky to get that rate. I would have moved it into ISA Funds - but the OH objected.

I now have a 5 year fix and a 4 year fix maturing early in the New Year .... and haven't a clue what I'm going to do with them. I can't reasonably transfer them into the existing ISA funds (the last 2 years subscriptions) - despite they've done extremely well. As I've had the same problem with a chunk of matured cash and that's now virtually all in (non ISA) Funds ........ so I need to keep the remaining cash as cash, for some semblance of balance.

If you're intent on remaining in cash - and know you want to transfer - then the only optimisation, as Cottager says, is to get the transfer in several weeks ahead but specifically noted not to press 'go' before the maturity date. Most - having accepted you at a rate - will allow up to 30 days to get the cash from the point of closure of that rate - but some (inc Halifax) will go to 60.

rb10

cottager wrote: »

The only things which concern me about the TFs making it to Cheshire within 30 days is postal delays (pretty sure Nationwide only use the post, don't know about Halifax) and the Christmas/NY break in the middle of it.

Halifax do send ISA transfers by BACS if the receiving bank will accept them. However, I doubt that Cheshire would (being a very small organisation).

cottager

Mikeyorks wrote: »

I now have a 5 year fix and a 4 year fix maturing early in the New Year .... and haven't a clue what I'm going to do with them.

Sorry, you lost me ever so slightly there... which isn't hard
Are these cash or ISAs?

But either way, in the absence of anything 'outstanding' (dream on, probably!) by the new year, what about settling for putting off the 'where do I fix' decision for a while, to see if something better comes along in the next few months? You'd need to gulp a bit and take the hit with a lower rate for instant access, but could be worth it for being able to jump into a reasonable fix immediately if there's one to be had further down the line.

Mikeyorks

cottager wrote: »

Sorry, you lost me ever so slightly there... which isn't hard
Are these cash or ISAs?

Sorry - they're ISAs. In fact - just having looked at the crib sheet - I've got 3 fixed rate ISAs (x 2 =6) maturing from mid March to mid April 2010. I'd forgotten the 3% one was only for a year - as I tend to fix for the maximum period of 4/5 years normally.

I'll wait until the Christmas excesses are behind us and take a longer look at the practical options.