What to do with Prinicpality ISA

Scaredy_Cat_3

I have a regular saver ISA with Principality which is due to mature (surprise! surprise!)... They have offered the option to close it and get the funds sent to me by cheque, or I can transfer into one of their fixed rate ISAs but these all have a fixed term and tranferring out in this period will incur fees.

They are opening a new regular saver ISA which looks pretty good but I'm still wondering what to do with the funds in the current one. It's less than 2k so not a lot by most ISA standards but it's a lot to me. I was reluctant to close it and get the money back as I don't know where to put it and obviously still want to get a decent rate of interest. But if I allow them to switch to one of their new fixed rate ISAs there are fees to transfer the money elsewhere - so how do I transfer the funds to another provider without incurring those penalties?

Should I try to get it transferred to another provider before 6th April and then leave it untouched so I can start the new regular saver? I may end up ringing them to ask - but I have just rang and the girl didn't seem to understand what I was asking.

scottishblondie

I'm transferring mine to another bank at 3% interest, I've got an appointment to get the process started on the 6th, but as long as you don't lock into one of the Principality's fixed terms you can do this at any time. I can't remember what the rate will go to but until you transfer or agree to a fixed term with Principality it will earn interest at <1%.

So I would say look around at the current offers and chose a place to transfer it to - you will not incur any fees for this unless you subscribe to one of their fixed term offers in the meantime. You can then open a new Principality regular saver with your 2010-2011 allowance, if you want to.

fullstop

Scaredy_Cat wrote: »

I have a regular saver ISA with Principality which is due to mature (surprise! surprise!)... They have offered the option to close it and get the funds sent to me by cheque, or I can transfer into one of their fixed rate ISAs but these all have a fixed term and tranferring out in this period will incur fees.

They are opening a new regular saver ISA which looks pretty good but I'm still wondering what to do with the funds in the current one. It's less than 2k so not a lot by most ISA standards but it's a lot to me. I was reluctant to close it and get the money back as I don't know where to put it and obviously still want to get a decent rate of interest. But if I allow them to switch to one of their new fixed rate ISAs there are fees to transfer the money elsewhere - so how do I transfer the funds to another provider without incurring those penalties?

Should I try to get it transferred to another provider before 6th April and then leave it untouched so I can start the new regular saver? I may end up ringing them to ask - but I have just rang and the girl didn't seem to understand what I was asking.

When does it mature?

You can wait until it matures and then transfer to another provider who accepts transfers, there is usually no charge for that service.

Scaredy_Cat_3

Thanks both of you! I've just rang them again and I hadn't realised there was the third option of doing nothing! I thought I had to either cash out or lock into one of their fixed rates. If I do nothing, as Blondie says, it goes onto a basic rate of 0.6% I think, and I can transfer that out without penalty.

That gives me a bit of a breather to make a decision then. I'll have a good look around in the next couple of weeks and get the funds transferred elsewhere (probably)... they are offering 4% if I lock in for 2 years but I'm not sure I want to tie myself in for that long.

I like the sound of their new regular saver which is 4% but not on the website until 6th April.

scottishblondie

I hadn't heard about their new regular saver one, I might look at that for my 2010-2011 ISA. I'm planning on transferring my matured one to the Clydesdale, fixed at 3% for a year. I'm not keen on tying my money up for more than a year at the moment either.

Scaredy_Cat_3

No, they mentioned the new regular saver one on the phone, said they'd just been given the rates but it's not on the website yet. I quite fancy that one, but will depend if anyone else comes out with a better deal!

Bit puzzled why they aren't even putting it on the website until 6th, would be nice to plan ahead. I'm also disappointed that they won't automatically inform me about the new regular saver ISA.

I'm also considering the Clydesdale - just had a quick look at Martin's top ones and I thought that or the Cheshire, but might be best to wait a few days and see if there are going to be any better deals around.

ctdctd

Scaredy_Cat wrote: »

No, they mentioned the new regular saver one on the phone, said they'd just been given the rates but it's not on the website yet........ I'm also disappointed that they won't automatically inform me about the new regular saver ISA.

In my letter about the maturing RS ISA, the new RS ISA is given a mention but without the interest rate. If is it 4% then it would give about the same return over a year as the Santander at 3.2% assuming a 2.75% taxed feeder account.
However, Santander may still be the better option as the rate will go up if the base rate rises