First Direct to launch 6.25% mini cash ISA

lipidicman

You are going to move for a 0.1% gain? The time between accounts could cost you more than this, so watch out!

YorkshireBoy

lipidicman wrote:

You are going to move for a 0.1% gain? The time between accounts could cost you more than this, so watch out!

The Halifax guarantee to back date the deposit and pay you interest from the day after it left your previous provider.

See my post #14 here...

http://forums.moneysavingexpert.com/showthread.html?t=88274&page=2&pp=10

lipidicman

Wow, so you don't even miss out on the usual 4 days BACS timescale?

Nice!

moomintroll_3

I asked FD outright whether they'd allow me to change to the new 5.5% ISA, their reply was:

Re: e-ISA Account

Thank you for your message dated 13-Sep-2005 regarding interest on your e-ISA account.

Please accept our apologies for the delay in responding to you. We have been waiting for our Commercial Department to finalise their decision.

We can now confirm that we will not be offering the rate of 5.5% AER to existing accounts. The rate will therefore reduce to 4% AER as from
06-Oct-2005 as outlined in our Terms and Conditions.

Please contact us if you require anything further.

Regards

So, is the Halifax the best place to move the money to now (bearing in mind I transferred OUT from there to get the FD rate)?

Cheers,
G

jamesebaker

Do you have to give 30 days notice to transfer out and if you don't do you lose a months interest?

jamesebaker

This is the portman building societys 25 day notice isa. It has an introductory offer for 6 months.

25 Day Notice ISA

A highly competitive, tax-free rate of interest

* Tax-free savings
* Minimum investment is £3,000
* Maximum investment is £3,000
* The 25 Day Notice ISA (Issue 1) pays 4.50% tax-free/AER p.a. (variable) plus a fixed introductory bonus rate of 0.75% for 6 months from the account opening date on balances of £3,000, currently this gives a rate of 5.25% tax-free (4.87% AER p.a.).
* The underlying variable rate (currently 4.50% tax-free/AER p.a.) is linked to the Bank of England Base Rate until 5th October 2006.
* If the balance falls below £3,000 the interest rate will be fixed at 1.00% tax-free/AER p.a.
* On 6th October 2006 the account automatically transfers to the Easy Access ISA.
* The AER is calculated on a balance of £3,000 based on 5.25% tax-free for 6 months, followed by 4.50% tax-free p.a. for the following 6 months.
* 25 days’ written notice is required for withdrawals, see below for details.
* After the 6 month bonus period, the interest rate will revert to the standard variable rate applicable on the account (we will not write to you at the end of the bonus period or on the maturity of the account).

jamesebaker

I remember reading that they were going to allow transfers by October 2005, but it looks like you still can't, so thats not much use at the moment!

hurunui

Anyone know if First Direct Charge a Transfer fee? I believe their topline rate is being reduced in Feb 2006,which makes the Halifax look a better deal?

jamesebaker

I don't think they do, I've checked their terms and conditions and can't find a mention of one.

Milarky

Didn't they charge a £30 fee for transfers out? [BTW First Direct won't/can't because their ISA is 'Stakeholder' standard, at least: Instant access, no fee to move out rate at no lower than 1% below BOE]

Anyway, the Portman looks dodgy on past form. Will they charge £30 to move again in six months? And why weren't they accepting transfers-in to their 'regular saver' ISA [paying 7.25% or somthing] earlier in the year, yet now they are taking transfers - obviously into a differnt type of ISA? What are they up to?