ISA transfer - best account?

innovate

The interest does not count as a deposit. Only what you deposit gets counted against your allowance.

sweetilemon

An update - decided to go for the M&S - started the online app then realised no transfer request section so called them to ask for the appropriate forms ( I don't have a computer/printer - just my mobile). After 15min on hold, no answer I gave up and called NS&I who answered immediately and are sending forms out. Can't transfer to their direct ISA so need to open a cash ISA first then transfer...apparently. With the final result at 2.25% with instant access that suits me. Thanks again everyone.

innovate

Astounding that M&S still leave phones unanswered until people just hang up. I wouldn't want to have any deposits with them - imagine the nightmare if you needed to talk to them about a withdrawal!

theloft

sweetilemon wrote: »

Thanks both, very helpful! Will go instant access anyway as may need the money so don't want to tie it away. I am toying with the idea of putting it into premium bonds but I have built up a few years ISA allowance so don't know if I would regret starting it from scatch again or if I don't win much!

M & S Money - have had no problems myself. They have a good Instant Access A/c giving 2.3% interest, but like most of them it is with 1 year's bonus, so be prepared to switch again after 1 year. What a pain this is !!

Leaskovski

If I was to transfer my full 17.5k across into the MS ISA now, when the rate drops at the end of March, if I then go and transfer out to a new provider, will I loose out on the interest earned up to that date being that the MS account pays annually? Or is the annual payments in line with the tax year?

Edit...

Just been reading the T&C...

13. Interest on payments you make and receive
13.1. For payments out of your Account, you will receive
interest up to the time the payment is deducted from
your Account. Interest will be calculated up to and
including the date of withdrawal.
13.2. Interest will be calculated on payments into your
Account prior to the actual clearance of such
payments (please see clause 18.1.3). Calculation of
interest will commence the day following the day
upon which we credit your Account and will be
added to your Account and will be paid in
accordance with the terms we have agreed with
you.

My understanding is then, that they would pay any interest that I have built up during the period, and then when I transfer it out to a better rate in March (hopefully they will exist), all that interest will go with it.

badger09

Leaskovski wrote: »

If I was to transfer my full 17.5k across into the MS ISA now, when the rate drops at the end of March, if I then go and transfer out to a new provider, will I loose out on the interest earned up to that date being that the MS account pays annually? Or is the annual payments in line with the tax year?

Edit...

Just been reading the T&C...

13. Interest on payments you make and receive
13.1. For payments out of your Account, you will receive
interest up to the time the payment is deducted from
your Account. Interest will be calculated up to and
including the date of withdrawal.
13.2. Interest will be calculated on payments into your
Account prior to the actual clearance of such
payments (please see clause 18.1.3). Calculation of
interest will commence the day following the day
upon which we credit your Account and will be
added to your Account and will be paid in
accordance with the terms we have agreed with
you.

My understanding is then, that they would pay any interest that I have built up during the period, and then when I transfer it out to a better rate in March (hopefully they will exist), all that interest will go with it.

It is standard practice on instant access accounts for interest to be credited annually, but calculated & accrued daily. So when the account is closed or transferred, interest is calculated and paid, up to that date. Fixed rate/fixed term accounts have different rules.

Don't forget to use your new ISA provider's transfer process though - don't try to transfer it yourself as you'll lose the tax free status :eek:

melbury

All of the ISA rates are pretty dire and make for depressing reading:(

johnfh_2

Why do some Isas allow transfer in whilst others do not? What are the relative advantages of each?
Thanks

John

rb10

johnfh wrote: »

Why do some Isas allow transfer in whilst others do not? What are the relative advantages of each?
Thanks

John

Generally those that do not allow transfers in have higher rates - so they are essentially saying that they'll pay you a high headline rate on the first £5k-ish of ISA money (the current year's allowance), and a slightly lower rate on the balance (previous years' allowances that you have transferred in).

innovate

Some providers might not care to take on large sums of money people may have accumulated over the years. If they limit their intake to just new money, they instantly know the max amount that could be deposited for the ISA (i.e. the annual allowance). On a transfer, they won't find out until they ask the old provider for the money.