Standard Life (Barclays) Direct Access ISA rate cut

equitydealer

I received notification that the Standard Life (Barclays) Direct Cash ISA rate will be slashed from 2.65% to 2.3% from October.

Goodbye Barclays!

The_Realist

Got this letter as well this morning. To be honest had been waiting for this ever since the annoucement of Barclays taking over!

Shifting most of this into my deposit for my house anyway so not too bothered but will prob move just to show them we are not stupid

equitydealer

agree, not a surprise with Barclays! Now wondering whether I can accept the poor customer service level of Santander for their 2.75% ISA

00ec25

Luckily I qualified for the S&L enhanced ISA rate of (currently) just over 4% (previously over 6%) because I had a mortgage with them at the time. I paid off the mortgage to £1 in the year of opening to retain the qualification right and have maxed out the ISA annually for the last 6 years. The new rate is pathetic so I see no need to remain loyal and am considering moving but I have no experience of transferring as there was never a need, so please forgive novice question:

- am I correct to assume that if it takes (say) 30 days for the transfer process to complete then I will lose 30 days interest?

- if one becomes a rate tart and moves each year then surely the headline rate of the new ISA is effectively lower because of the lost interest during the transfer process?

Lokolo_2

00ec25 wrote: »

- am I correct to assume that if it takes (say) 30 days for the transfer process to complete then I will lose 30 days interest?

Yes you will lose the interest for this period

00ec25 wrote: »

- if one becomes a rate tart and moves each year then surely the headline rate of the new ISA is effectively lower because of the lost interest during the transfer process?

This depends on the difference in interest rates of your current provider and your new provider, as has been discussed in other posts, most of the time you benefit from transfering to a better rate :j