Help/Advice needed on transfering an ISA

babajang

Hello everybody I would like some advice from anyone in the know.

I opened an ISA in November of last year with the AA (ISA Issue 2) 3.05% interest rate paid yearly.

As the new tax year started I opened another ISA with Santander at 3.5% this account also allows ISA transfers in. I want to transfer my AA isa into this account because of the better interest rate.

What I would like to know is this. If I get the transfer done will the AA pay now what interest I have earned over the 5 month period of having their ISA or will I have to wait until this November to get the interest? If i have to wait until November it will mean transferring that little bit of interest over into my Santander one, seems a little frustrating.

innovate

You need to check the T&Cs of your AA ISA - - what, if any, minimum period have you committed to, what - if any - is the penalty for withdrawing early, what - if any - notice do you have to give, what - if any - charges are there for transfers.

If you can't find your T&Cs, ring the AA with these questions?

If there are no reasons for not transferring now, fill in the Santander transfer form, and the AA will pay your balance plus any interest accrued up to the withdrawal date.

castle96

if you opted for daily/monthly interest, then should be ok to transfer now (assuming withdrawals can be made - see T&C). If you opted for yearly interest, then presumably not. Ask AA ?

innovate

makes no diff whether you asked for monthly or for annual. When an ISA is closed (which the transfer form would ask for), interest will be paid until the transfer date, pro-rata-ed as required.

The big Q is whether there will be any penalties for early withdrawal.