Switching ISA provider?

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
14 replies 4.8K views
tim02tim02 Forumite
6 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Hi all,

I currently have just over £12K in my Natwest Mini-Cash ISA. I have been reading through this forum, and have just realised that it's actually possible to switch mini-cash ISA provider. Is this true? If so, here are a few things to bear in mind:

1. I have fully used up my yearly £3K allowance
2. I would like an account which has an online banking tool
3. If possible the interest should be monthly, although this is not obligatory
4. I currently get 4.5% interest

Can my full £12K be switched over? Is the process easy? Are there any catches?

What should I do?

Thanks!
«1

Replies

  • OptimistOptimist Forumite
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    Its very easy and your new ISA provider will do it. Top of the head and the one I have just transferred mine to is Bradford and Bingley paying 5.15 % (as of beginning of Sept) You apply on line they send a hard copy to you in which you fill in your current ISA provider send it back and about 30 days later you get a message to say your new account is open and your money is there.

    http://www.bradford-bingley.co.uk/savingsandinvestments/esavingsISA.asp
    "The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts."

    Bertrand Russell. British author, mathematician, & philosopher (1872 - 1970)
  • tim02tim02 Forumite
    6 Posts
    Thanks!

    And does that mean I can transfer my full £12K across? Will Natwest charge me anything?
  • OptimistOptimist Forumite
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    tim02 wrote:
    Thanks!

    And does that mean I can transfer my full £12K across? Will Natwest charge me anything?

    1.Yes 2. Depends on the terms of the Natwest ISA
    "The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts."

    Bertrand Russell. British author, mathematician, & philosopher (1872 - 1970)
  • jamesdjamesd Forumite
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    Optimist, Bradford and Bingley isn't top of the interest rates. The highest rate I currently know for an ISA is 5.75% AER from Ruffler Bank with interest paid quarterly but no online banking. Transfers accepted.

    tim02, the difference in rates between B&B and Ruffler amounts to 72 for 12000 in the account.
  • steady__eddiesteady__eddie Forumite
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    Probably just a word of caution abiut Ruffler, have a look at this thread,
    http://forums.moneysavingexpert.com/showthread.html?t=223981&highlight=ruffler+bank
  • Thanks for this.

    Just another thought - is the transfer worth it? For example, if I transferred to B&B, I would get around £78 extra a year (compared to Natwest). However, do I miss out on a full month's interest round (around £45 per month)? Or does the transfer take just a few days?

    Thanks, Tim
  • jamesdjamesd Forumite
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    It should take no more time without interest than a normal bank transfer. One possible case where that doesn't apply is if the bank you're transferring from has a switching penalty, which might be a month's interest. NatWest could tell you about theirs, if any.
  • humferhumfer Forumite
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    Just make its transferred directly into the new ISA account. Normally your new ISA provider will send you a form which you sign and forward onto your current provider for them to transfer the monies directly across ensuring you don't loose the tax-free status. Never ever take the money out of the current ISA, stick it in your current account and then open your new ISA - it won't work!!
  • OK - thanks again. I have read through Natwest's T&Cs and I don't see anything about a penalty.

    Last thing - on B&B's website the rate is at 5% - is this going to change? If so, when?

    Thanks, Tim
  • lisyloolisyloo Forumite
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    It should take no more time without interest than a normal bank transfer

    Be aware that many banks transfer by cheque in the post (second class of course).
    They claim that this is because the transfer HAS to be done along with ISA paperwork so cannot go on-line.
    I don't know whether this is ALL banks or only some.

    The receiving bank may credit the cheque immediately or may wait for it to clear.
    So be aware that you may lose a few days of interest especially if it is posted over a weekend.

    Just factor it in to your calculations to make sure it's worthwhile.
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