Cash ISAs: The Best Currently Available List

Brisfit

https://forums.moneysavingexpert.com/discussion/comment/82172750#Comment_82172750

You will have a period of time after maturity to transfer out without penalty, think 21 days for my recent Skipton ISA.

CeliaSeas

https://forums.moneysavingexpert.com/discussion/comment/82172769#Comment_82172769

Thank you very much, that's reassuring😊

Barkin

https://forums.moneysavingexpert.com/discussion/comment/82172750#Comment_82172750

Is that a problem?

If the default is not what you want, just give instructions so that you get what you do want, surely?

Brisfit

https://forums.moneysavingexpert.com/discussion/comment/82172924#Comment_82172924

it’s just a faff. The only options in the maturity letter/online are fixed rates. If you really want a variable rate you’d need to open it yourself and then internal transfer into it in the penalty free period. The easy access rates are below 4% at the moment so IMO only really worth doing if you just wanted to park the money for more than the 21 days to choose a new fix.

You may be able to do it by contacting customer services but when I tried that elsewhere they just said to do as I described above.

J63320

re Fixed ISAs with default maturity into new Fixed ISAs, as someone who’s getting on a bit, and with no close family to immediately step in and deal with stuff, I try to avoid situations where things could get out of control if I were to be temporarily out of action - e.g. accident, short illness. For example, my credit cards bills are all paid by DD. I wouldn’t want to find that, because I wasn’t there to intervene, money that I needed access to had been tied up again, so I simply wouldn’t open an account with this setup.
(Before anyone suggests it: PoA is in place for longer term illness/disability/incapacity.)

CeliaSeas

https://forums.moneysavingexpert.com/discussion/comment/82172924#Comment_82172924

It's not a huge problem, but it also feels like a slight sting in the tail; if you're not on the ball your money will be locked away for another year, probably at an uncompetitive rate. I would prefer the default to be a fail safe.

Other than that the account takes a lot of boxes for me and so I have opened it. Opening was very quick because I already have an RS account with Skipton. The process of opening didn't steer me towards transferring in at the same time, and the button to transfer in is still visible in the account now that it's open.

Barkin

https://forums.moneysavingexpert.com/discussion/comment/82173015#Comment_82173015

It's been a while since I had a Skipton FR account mature, and I don't recall what the options were, but if you're already a customer (which will be the case if you've a FR account maturing) it only takes a couple of minutes to open a new account and move funds, if that's what needs to be done.

Whether that's too much of a faff, compared with having funds end up somewhere you don't want them...

Of course if rates aren't attractive, and you're transferring elsewhere, all of this is moot.

clairec666

I've never paid much attention to default maturity options when opening accounts, I just look for the best interest rate, and make sure I pay attention when the maturity date is approaching.

I agree that it's not ideal for it to default to another fix, but I've also seen people complaining when it defaults to a low (<1%) easy access ISA. Ideally there would be some kind of intermediate option available, e.g. a limited access ISA with a decent rate. This is what Virgin offered me last time I had an ISA mature. It kept the same account number, which meant I could pre-arrange a transfer on maturity and not lose much intetest if it took a few days.

fuzzzzy

https://forums.moneysavingexpert.com/discussion/comment/82173457#Comment_82173457

I think the worry with a fixed term ISA maturing into another fixed term ISA is that if you want to set up maturity instructions in advance with another provider to occur at maturity there is a bit of stress that something might go wrong, leading to potential withdrawal penalties if the transfer took too long. Sure you could make a complaint in those circumstances and ask for compensation, but who wants that hassle. I think I might be more inclined just to go for a slightly lower rate product safe in the knowledge it would mature into something with access.

Maybe Skipton do let you transfer into one of their easy access ISAs though if you already have one? I have a base rate tracker ISA with them with nowt much in it so possibly that could be used as a future maturity option.

samtaylor99

There are quite a few FR ISA's which default to another FR on maturity. Seems to be a recent (last year or so) thing. They all have a minimum of 14 days 'get out ' period. They also mostly have a poor variable easy access alternative. I'm wondering if one was to ignore the enforced change and within the 1st few days of the changeover ensure a transfer to an ISA of your choosing lands with the original provider. As it's within the 14 day grace period would they be obliged to action it and include interest at the rate they bumped you into? Might be better than letting them slowly get the transfer organised at a dismal EA rate.