MSE News: Cash Isa transfers slowly getting quicker

neil324

I hope they take a month, I am transferring to Nationwide so I am getting interest at both ends, 6.3% in total. Ah I feel all nostalgic now.

JezR

Mikeyorks wrote: »

Cash ISA transfers are still made between institutions almost exclusively by cheque. As it's the safest method currently around to keep payment and paperwork together.

The British Bankers Association has indicated to the Financial Times that providers were presently able to choose whether payments were made via cheque or a faster transfer system. Why so many (all?) still do it by a paper method is 'anachronistic' to quote Consumer Focus' view. As in my case it isn't much good keeping papers together when they are sent to the wrong provider - who never managed to trace them when approached.

Money_Saving_Dude

Hi,

I'm looking at transferring a Cash ISA into Santander, but they have this rather dubious declaration. I don't want to open a Cash ISA for this year, only transfer an existing one. So why these statements? I've sent a note to their customer services to ask for clarification, but they have been so super efficient in working with other people's requests they still haven't got back to me, after a week, hence why I'm asking here.

Any responses appreciated. Here is the declaration -- my comments are in italics. It all sounds a bit daft to me.



Declaration

I apply to subscribe for a Cash ISA for the tax year 2012-2013 and each subsequent year until further notice. (This doesn't commit you to paying in every year but ensures that if you do, we won't need to ask you to sign another form)

But I'm transferring an ISA -- so my ISA will be for the tax year that I originally opened the ISA. Why is this declaration important? And what if I've already opened an ISA this year -- that would make this unenforceable.

All subscriptions made, and to be made belong to me;

I am 16 years of age or over;

I have not subscribed and will not subscribe more than the overall subscription limit in total to a Cash ISA and a Stocks and Shares ISA in the same tax year;

But I might have -- all I'm doing is requesting a transfer.

I have not subscribed and will not subscribe more than the Cash ISA subscription limit to one Cash ISA;

Nope -- and I've no intention of putting money in a cash ISA this year, so that's not a problem.

I have not subscribed and will not subscribe to another Cash ISA in the same tax year as I subscribe to this Cash ISA

Is it the case that if I don't put any money into the cash ISA it doesn't exist.

psychic_teabag

Money_Saving_Dude wrote: »

I apply to subscribe for a Cash ISA for the tax year 2012-2013 and each subsequent year until further notice. (This doesn't commit you to paying in every year but ensures that if you do, we won't need to ask you to sign another form)

But I'm transferring an ISA -- so my ISA will be for the tax year that I originally opened the ISA. Why is this declaration important? And what if I've already opened an ISA this year -- that would make this unenforceable.

It's okay to apply to subscribe, but then choose not to subscribe. This can be one of the years where you decide not to pay in.

I have not subscribed and will not subscribe more than the overall subscription limit in total to a Cash ISA and a Stocks and Shares ISA in the same tax year;

But I might have -- all I'm doing is requesting a transfer.

That's fine : doesn't apply since you won't be subscribing to this ISA in this tax year. Just acknowledge that you know that there is a rule about max subscription per year. Transfers do not count towards subscription limit.

I have not subscribed and will not subscribe to another Cash ISA in the same tax year as I subscribe to this Cash ISA

Is it the case that if I don't put any money into the cash ISA it doesn't exist.

Yes, since you're not subscribing to this cash ISA this year, doesn't apply to you for this year.

Money_Saving_Dude

Cool, ok many thanks. That makes more sense. Seems less daft now you say that. Still, they could make it clearer (IMHO) by putting some explanatory text around it.

But hey, that may be asking too much.

Thanks again for your swift reply.

savetilibleed

MSE_Helen wrote: »

This is the discussion thread for the following MSE News Story:

"Cash Isa transfer times have shortened following action by the OFT, though they still take over two weeks ..."

Maybe so, but if something goes wrong they don't seem able to sort it.

I opened a Direct ISA with Santander on 24 March. On 26 March I posted the transfer form to Santander to transfer out of ING Direct. When nothing happened I called first Santander then ING to find they got my form and the covering letter I sent to Santander with the form, but I failed to sign the form . OK my fault. But I wonder if Santander thought the signature on my letter was a suitable substitute for me not signing the form. If only Santander had posted it back to me!!

ING rejected and sent back to Santander, who did nothing. Later I found ING had re-opened the ISA with another a/c no and customer number and at a lower rate! This confusion was sorted with £10 compensation from ING.

Meantime I went to a Santander branch on 12 April to complete another form. On 23 April, ING did the transfer closing that account and sending out the cheque to Santander. A letter from them to ING chasing the transfer crossed so ING understandably took no action. ING said I'd have to get Santander to request cheques again if nothing in a few days.

So today as there is still no money in my Santander ISA and they still claim not to have received funds, I have requested their people request again to ING.

Edit 03/05/12: Today the money appears online!!! Funny that how a shove does it.!!

Fellwalker

neil324 wrote: »

I hope they take a month, I am transferring to Nationwide so I am getting interest at both ends, 6.3% in total. Ah I feel all nostalgic now.

Highly unlikely. The rules say that the old provider must send a cheque dated the first day where interest no longer accrues. The new provider must apply interest from the date of the cheque (or from day 16 of the process, whichever is earlier).

Fellwalker

Transfer in to NatWest of all old ISAs. Opened Sunday 15th April. Posted transfer forms 16th by first class post, should have arrived 17th.
> Santander transfer in by Faster Payment on 24th so at most 5 working days. Excellent.
> National Savings closed account 26th, no sign of funds, should arrive today at latest and be backdated. Funds arrived and are showing as received 4 May, so I now need to get on to NatWest and find why the delay.
> Northern Rock (Virgin) - I rang for an update. They advise that they received the instruction on 24th (5 working days) and sent the cheque on 1st May (5 working days) so the maximum time scale has been achieved so far. Convenient for them as their follow on rate was very low. NOT CREDITED UNTIL 10 MAY. Northern Rock must have sent by carrier pigeon, not the proper first class post.

ceejayblue

I'm having trouble with the transfer of my ING ISA into my new NATWEST one! My Nationwide ISA transferred in a matter of days but the ING one is still not in there. Have spoken to ING and they posted the cheque on 11 April but NATWEST saying they've not received it! They are sending a reminder to ING so I'm giving them another week, at least interest will be paid from when I opened the account so I won't lose out!

When I spoke to NATWEST they told me that amounts over £10k have to be transferred by cheque but my ING one is only around £5.5K and my Nationwide one was £25K and that was transferred very quickly. Apparently it is in the pipeline for all ISA transfers to be made electronically which will hopefully make transfers quicker.

AirlieBird

ceejayblue wrote: »

Apparently it is in the pipeline for all ISA transfers to be made electronically which will hopefully make transfers quicker.

Yes, the electronic Cash ISA Transfer system, run by BACs, will go live from late October. All BACs scheme members, which account for 80% of Cash ISA Transfers, must be using it by January 2013. It will remove the need not just for cheques but also any paper forms to be exchanged between providers.