interest on ISA's that your transfer

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
4 replies 732 views
gil13gil13 Forumite
297 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Quick question, what happens with regards to interest on cash ISA's when you request their transfer to another provider. Is is just added pro-rata at that point plus the balance in the account to be transfered ?

Replies

  • Yep. The capital and any accrued interest up to the transfer date gets transfered to the new provider.
  • lisyloolisyloo Forumite
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    Be aware that you may lose a few days interest in the transfer.

    Mnay banks do it by cheque (they claim it has to go along with the ISA paperwork).
    If yours gets sent out on a Friday then you'll lose the weekend.
    The bank the other end won't get it for a few days.

    2 is about the minimum but could be up to 10 if they wait for clearance.

    Factor this in if you are going to transfer.
  • I bought a Legal and General investment isa £7000 a few years ago which will mature shortly. Can I put the whole amount paid out into an existing mini cash isa? Would this effect my annual £3000 allowance for a cash isa.
    Thanks for any views.
  • Paul_HerringPaul_Herring Forumite
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    YELLOWMG wrote:
    I bought a Legal and General investment isa £7000 a few years ago which will mature shortly. Can I put the whole amount paid out into an existing mini cash isa?
    No. You cannot put previous investment funds into cash funds. Nor, at the moment, can you swap cash funds for investment funds. (Though the government may soon allow you to put previous cash funds into an investment fund - it works out cheaper for the government.)
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
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