Transferring ISA - interest

Svenena

I'm going to transfer my current ISA (which is with Barclays) to Halifax, as it's on a bonus rate which is due to end soon. The interest is currently paid monthly, on around the 5th of the month.

My question is, if I transfer the money mid-month (eg around now), will Barclays pay interest up to the date of the transfer before the transfer goes ahead? I don't want to lose a couple of weeks interest, and I assume the current ISA gets closed down as part of the transfer process, so they won't have anywhere to pay it if they wait until the next regular interest payment date (unless it goes in my current account, which I don't want).

blueberrypie

As long as it's not a fixed-rate ISA (and if the interest is paid monthly, I assume it isn't), they'll calculate the interest up to the day it's closed and add it just before they transfer the funds to Halifax.

Yorkie1

And I believe that Halifax also have their interest guarantee (or whatever it's properly called) whereby they will backdate their interest from the date of opening rather than the date of receipt of funds, so there's usually an element of double interest.