Transferring Santander direct Isa for better rate before April

danielb1994

I recently got a letter from Santander reminding me that the interest rate on my direct cash Isa will reduce to 0.5% because the bonus rate will expire.

If I transfer the isa to the Cheshire 2.5% cash Isa this week will I still get the same interest that is owed to me and will they pay it to the new Isa at the same time as the transfer?

From what I can make out from the terms an conditions (issue 9) I looks like there is no transfer penalty but wasn't sure how it would affect the interest owed to me.

I want to transfer it so I can get a better rate and start a completely new Isa in April with ns&i. Any advice is much appreciated thanks.

tanith

The interest accrued to the date you transfer will be added and transferred with the ISA into your new preferred ISA

ponbeam

When does your rate drop on the Santander ISA?
Bare in mind all the banks will be bringing out their headline in the next week and a half it may be worth waiting!

danielb1994

ponbeam wrote: »

When does your rate drop on the Santander ISA?
Bare in mind all the banks will be bringing out their headline in the next week and a half it may be worth waiting!

It changes on April 23rd so I still have time but wanted to make sure I leave enough time to transfer it before April 6th otherwise I won't be able to open a new isa will I? Maybe I'll wait a week and a half for any better offers then thanks!

Vortigern

danielb1994 wrote: »

II wanted to make sure I leave enough time to transfer it before April 6th otherwise I won't be able to open a new isa will I?

Yes, you will be able to open a new ISA after April 6th, regardless of what you do with last year's money. You could do a transfer either before or after 6th April, then add next year's money to your new ISA on or after 6th April

innovate

Vortigern wrote: »

Yes, you will be able to open a new ISA after April 6th, regardless of what you do with last year's money. You could do a transfer either before or after 6th April, then add next year's money to your new ISA on or after 6th April

You could also transfer (or not) the old ISA whenever you like. And open a new ISA for new money on /after April 6 2013. It does not have to be a single ISA for the old and the new money.

danielb1994

Vortigern wrote: »

Yes, you will be able to open a new ISA after April 6th, regardless of what you do with last year's money. You could do a transfer either before or after 6th April, then add next year's money to your new ISA on or after 6th April

Ok great thanks this was what I was unsure if thanks for clearing that up. I think I will wait to see if there are any better rates offered before April 23rd and transfer my current isa, also open a new one April 6th.

funnyguy

My wifes Santander ISA[issue 9] finishes on March 13th[3.3%].So frustrating as she has over £15000 in it ,but to get 2% she needs plus £25000.Anything less than 3 % rate I will have to close,which I didnt want to do, and move to my tax free3%[until sept] easy saver .With My issue 9 isa [3.3]the rate finishes finishes on 7th april so better rates might be out by then.

Bettie

I was told that those with 123 accounts _may_ be offered a better rate of interest on ISAs come April, it is something they are thinking about. i don't have a 123 account...yet...

innovate

Bettie wrote: »

I was told that those with 123 accounts _may_ be offered a better rate of interest on ISAs come April, it is something they are thinking about. i don't have a 123 account...yet...

Santander have had "exclusive" rates for 123 customers for some time. That doesn't make them good rates though.
http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&canal=CABBEYCOM&cid=1210607970481&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateY2

innovate

funnyguy wrote: »

My wifes Santander ISA[issue 9] finishes on March 13th[3.3%].So frustrating as she has over £15000 in it ,but to get 2% she needs plus £25000.Anything less than 3 % rate I will have to close,which I didnt want to do, and move to my tax free3%[until sept] easy saver .With My issue 9 isa [3.3]the rate finishes finishes on 7th april so better rates might be out by then.

HSBC offer 2.75% for over £15K. Your wife just needs to open one of their current accounts to qualify.

I reckon it would be a crying shame to sacrifice £15K's worth of money in a tax shelter for £20ish.