Simple Tranfser Question

sheffieldeagle

Hi

I know this is probably a really stupid question but I've never transferred an ISA before. I currently have a fixed rate ISA with Santander which has most of this years allowance used (£30 left) which I want to transfer to another provider. My question is how do I transfer without losing the interest on the existing account. I'm assuming that the existing account pays interest on this years allowance unless I cancel the account before the anniversay period has elasped. Is this correct?
Many thanks.

Gromitt

It'll be as simple as filling out an 'ISA Transfer Authority' form with your new provider, which you sign, post and then then post to your old provide to acquire the funds.

Not every provider allows transfers though.

Eco_Miser

While transfering an ISA is easy, avoiding the penalties for closing a fixed rate, and presumably fixed term, account is not. Read the terms and conditions for your account carefully for the penalties they apply, and the circumstances in which they don't levy them (usually just death of the account holder). I would assume that interest is paid up to the day the account is closed/transferred, but something like 180 days interest is deducted as an early closure penalty, but that's just a guess. Read the t&c's.

Gromitt

Halifax deduct anything upto 365 days’ interest, depending on how long you fix for.

So if you close too early, you can actually get back less than you deposited.

nearlyretired2004

What Grommitt said in his FIRST reply .......

a bit unclear, but I think its probably just a typo....

He says 'post and then THEN post to your old provider....'

almost sounds as though you post it to your old provider, but i'm sure he means and 'then THEY post it to your old provider ....'

i.e. you sign the form and post to your NEW provider and THEY request the funds from your OLD provider.

Hope I've made that clearer rather than more complicated!

All other comments about loss of interest on fixed rates are spot on ....make sure you read the T's and C's of your current ISA....

Spiggle

Hi sheffiledeagle,

Which ISA is it? What was the term of the fix and when did you open it? If it is a fix then it's likely you'd lose between 90 and 120 days interest if the fixed term isn't up.

Is it definitely a fix or is it the tracker that guarantees a % above bank of england base rate for 12 months? This account should let you transfer out with no loss of interest. The interest will be paid up to the date it is transferred out.

Whatever you do, don't withdraw the money if it's going into another ISA. Get a form from the new provider, usually downloadable online, and send that to the new provider. They will then contact Santander and arrange the funds to be transferred within the tax wrapper.

Hope that helps,
Spigs

sheffieldeagle

Thanks everyone!