Transfering.. how do I get my interest?

simonkirkland

Hi all,

I have 2 isa's with smile and I am going to move them to Marks and Spencer as there interest is better. I haven't received this years interest yet (as it's not april yet). If I transfer to M+S now will smile simply calculate my interest now and add it to the amount transferred? or is there some other complex method?

thanks

Simon

dunstonh

Interest accrues daily and is paid annually. You will get the number of days you are entitled to if you transfer before the date interest is paid. (i.e.320/365 days worth).

Bun

I have the same sort of query really - I'm about to transfer my ISA from Nationwide (4.85%). I too will only get the interest at the start of April. I have two choices - move to First Direct at 6.25% until October, and then move or go straight for the A and L 5.4 Direct ISA at 5.4%. All the providers I've checked out seem to need 30 days to transfer the funds. Anybody got any ideas as to what happens to the interest in this period? Will this make any difference to deciding who to go for (ie only one 30 day period being transferred or two)

Thanks for your help in advance! :j

simonkirkland

so if I have £6300 in an isa (two years and some interest) today and I transfer it to M+S I will see £6300+ interest (say £6500) in my M+S account and then in April I will get a few days worth of interest from M+S (assuming the transfer is quick)

Simon

simonkirkland

BUN: - you do know A+L isn't CAT standard and they will charge you if you wish to transfer in the future?

I chose First direct but you can only open or transfer a max of £3000+interest with them so I couldn't transfer all my ISAs/cash to them. I'm going with marks and spencer as they are CAT standard and are at 5.25% (I also have an previous mini ISA with them)

Simon

stevenrk

Hello Simon,

I had the same issue you have, ie, that I have more than the £3K limit to transfer to First Direct.

FD told me that what a lot of people were doing was transferring £3K now, and then waiting till the new financial year starts and transferring the balance as part of their allowance for the new financial year. Not ideal for you as you have £6K+, but worth thinking about.

Steve

simonkirkland

Yeah I thought about this but decided to open a fresh as I had a new 3K to save as well as the 6+k already in ISA's and I also have another 3k cash for the 05/06 which I will put into a new FD when the new year comes.

So I decided that I would move my other ISA's to the next decent highest payer, which for me is M+S.

I'm just querying the interest so I don't lose out by moving this close to the end of the finaancial yera, but it looks like I'm OK.

Simon

Bun

Thanks for that Simon! Have just looked through their small print and it will be a charge of £25 ie the difference in interest that I'm transferring for!
May do the First Direct one..

isasmurf

stevenrk wrote:

FD told me that what a lot of people were doing was transferring £3K now, and then waiting till the new financial year starts and transferring the balance as part of their allowance for the new financial year.

First Direct do know that transfers don't count towards your allowance don't they?

Bun

Hi Isasmurf,
This is what the terms say (only when you go into the apply bit)

"Transfers made into the e-ISA (from mini cash ISAs held elsewhere) are limited to £ 3,000 plus, if current tax year’s subscriptions are being transferred, any interest earned on that subscription."

Mine is £3000 from 2003/4, and interest plus a few pounds from this year. Could I transfer the lot in one go or not as others here seem to have read it?
Thanks

simonkirkland

They will take the £3000 plus interest but not the 'few pounds from this year'.

Simon