Transfer of First Direct ISA to another provider

veryintrigued

Some advice please.

I have already invested £5100 in a First Direct ISA this year which makes the total in the account at £6300. The interest rate is due to fall from 2.62% to 0.20% on 1st November.

Am I right in thinking I can switch the £5100 amount to another institution even though I have used up my ISA allowance until April 2011? i.e. I cant switch the full amount. (Looking at Martin's money guidance it would seem that previous years are savings are accepted).

If I am right has anyone any recent experience of ones with a) a good rate and b) seamless switching.

I have currently got a query in with First Direct to ensure that I don't get hit with any penalties for moving ISA.

Cheers in advance

lisyloo

I cant switch the full amount. (Looking at Martin's money guidance it would seem that previous years are savings are accepted).

Provided you pick the correct ISA you should be able to transfer the whole lot.
Do you have a link or can you quote the bit in Martins guide?? as I don't understand what you mean. Some comapnies won't accept transfers in but that's a condition of the account.
I'd be interested to see what you are referring to.

AFAIK there is no penalty but you are best checking with them in case you have a different account to mine.

Allow a few weeks.
I am thinking of the principality at 2.8%.

veryintrigued

lisyloo wrote: »

Provided you pick the correct ISA you should be able to transfer the whole lot.
Do you have a link or can you quote the bit in Martins guide?? as I don't understand what you mean. Some comapnies won't accept transfers in but that's a condition of the account.
I'd be interested to see what you are referring to.

AFAIK there is no penalty but you are best checking with them in case you have a different account to mine.

Allow a few weeks.
I am thinking of the principality at 2.8%.

Lisyloo- firstly thanks for taking the time to get back to me.

I had seen the Principality one too - edit just spotted Northern Rock via Moneyfacts which l looks like a belter too. Edit again the 2.85% NR one doesnt allow transfers!! Back to Prinipaility.

Here is the link to the 'guidelines' http://www.moneysavingexpert.com/savings/cash-isa-transfers

Unsure when to start this process off as under ISA rules it can take 'up to 30 days'. i.e. on 1/11 or 1/10 or somewhere in between!

lisyloo

Here is the link to the 'guidelines'

I can't see anything about only transferring £5100.
Can you give me any clues where it is ? e.g. section title?
I thikn you might have mis-understood something as you can generally either transfer all or nothing.

Unsure when to start this process off as under ISA rules it can take 'up to 30 days'. i.e. on 1/11 or 1/10 or somewhere in between!

I don't know exactly which rate you're on as FD changed it a few times, but you'll be better off earning 2.85 too early than earning 0.2% because you've left it too late, so I'd err on the cautious side.

jamiex

I have the same First Direct ISA, with the rate going down to 0.2% on 1st November.

I've just posted off transfer forms to Nationwide, for their e-ISA. It's 2.75% until 30th June 2011, then goes to 1.75% (but then maybe I'll transfer again)

ISA transfers can take a month, so I thought I'd make sure I've done it in time.

I only chose Nationwide because I already have an account with them, so it's a bit easier and the rate isn't much less than the top ones at the moment.

Nessie23

Hi I have recently switched from Nationwide to principality, and they trnasfer took about 2 weeks to complete. I found the friendly customer services a breath of fresh air compared to other providers.
http://www.principality.co.uk/default.aspx?page=279

Other alternatives you might want to consider are Halifax @ 2.8% or 3% (if you are an existing current account customer)
http://www.halifax.co.uk/savings/isa-direct-reward.asp
There are also several accounts paying 2.70%


You can check the latest rates for ISA transfers at moneyfacts
http://moneyfacts.co.uk/compare/savings/cash-isa/transfer/

Hope this helps,
Nessie

Loughton_Monkey

My suggestion would be to transfer to Principality, provided they allow it if you are not going to pay any more this tax year (nothing on their web site suggests a problem).

However, maybe you should consider adjusting your timing. You see you will be in the same position next November. Principality's rate will drop because the 'bonus' falls off. You will then need to look for another provider who is (a) offering higher rate, (b) accepts transfers in, and (c) will do so even without a current year contribution.

I recommend transferring, but before you dump in next year's £5,100, consider another provider (if exist - at the time) who is offering a good bonus for a year, plus accepts transfers in. Do this pretty much around 6th April (hopefully there will be a bit of competition by that time).

Sadly, these transfers do take a long time, but that's why you need to do them well before expiry of a 'good' rate. My understanding (and own experience) is that even if it takes a month, you are still accruing interest with the old provider. You just lose a 'few' days when it's physically transferred.

Of course all these banks could throw the money at each other by electronic transfer, but I was told they physically write out cheques from one bank to another - thus ensuring that the money stays 'in the system' for as long as possible. Deliberately getting more money from the dwindling Clearing System at the expense of the customer? Surely not!

veryintrigued

Thanks to all on this.

Some great advice - i.e.

Transfer as soon as possible
Be aware of the same issues in consecutive years
Principality seem a reasonably good institution
All accrued allowances can be moved

Thanks all again guys and girls. Paperwork will be sorted this week end to transfer from First Direct to Principality.

lisyloo

have recently switched from Nationwide to principality, and they trnasfer took about 2 weeks to complete. I found the friendly customer services a breath of fresh air compared to other providers.

Thanks, really useful info.

My understanding (and own experience) is that even if it takes a month, you are still accruing interest with the old provider. You just lose a 'few' days when it's physically transferred.

This is true, but bear in mind with FD this will be 0.2% after your anniversary.

All accrued allowances can be moved

To institutions that accept xfers in. Not all do.

Of course all these banks could throw the money at each other by electronic transfer, but I was told they physically write out cheques from one bank to another - thus ensuring that the money stays 'in the system' for as long as possible. Deliberately getting more money from the dwindling Clearing System at the expense of the customer? Surely not!

I have been told that the tax paperwork (remeber these are tax free for life) has to travel with the payment.
If this is true then it's unfair to blame the banks if it's regulations they are obliged to follow from HMRC.
I do agree they are very slow though and should speed it up a bit.

Nessie23

Loughton_Monkey wrote: »

My suggestion would be to transfer to Principality, provided they allow it if you are not going to pay any more this tax year (nothing on their web site suggests a problem).

Hi I only transferred my previous years' ISA subscription to Principality and it wasn't a problem. You only have to watch out with Principality's online form which is a bit confusing (any probs give customer services a call).

Secondly I have found that when transferring out of first direct if they are a bit slow in processing the transfer give them a friendly nudge over the telephone and they will probably action the transfer there and then.

Nessie

veryintrigued

veryintrigued wrote: »

Some advice please.

I have already invested £5100 in a First Direct ISA this year which makes the total in the account at £6300. The interest rate is due to fall from 2.62% to 0.20% on 1st November.

Am I right in thinking I can switch the £5100 amount to another institution even though I have used up my ISA allowance until April 2011? i.e. I cant switch the full amount. (Looking at Martin's money guidance it would seem that previous years are savings are accepted).

If I am right has anyone any recent experience of ones with a) a good rate and b) seamless switching.

I have currently got a query in with First Direct to ensure that I don't get hit with any penalties for moving ISA.

Cheers in advance

First direct have advised that there are no fees associated with switching this account.

However they worryingly have advised me that "earning the promotional interest rate of 3.00% AER (2.96% tax-free), fixed until 09 Nov 2010. Thereafter,it will revert to 2.70% AER (2.67% tax free) fixed until 30 Nov 2011."

This is a complete contradiction to what was quoted on their interest rate page (which has now changed in line with their quote too)! I have the previous screen shots stored away.

So they seem to be saying that two weeks of research and the subsequent completion and sending of the forms to Principality have been for nothing.

I now have a formal complaint in for this matter and will advise the forum of the results.