How/when to transfer out of Santander ISA?

VodkaSorbet

I've got £20k in a fixed-rate Santander ISA which matures on 1 May (no access to the money before then).

Is it possible to open a new ISA for transfers in now, even though I won't be able to make the transfer for another month?

Although the best rate available is only 2.3%, unless Santander will allow me to transfer into their 2.5% ISA, I figured this is still going to be better than anything on offer in a month's time (I don't want the risk of fixing for 2 years to get a marginally better rate).

Am I right in sticking within the ISA wrapper rather than putting it into a better rate taxed account (I am a lower-rate tax payer)?

Thanks for any advice.

Barbeduk

Check the santander website. You can open the direct saver isa with a zero balance, pays 2.5%. If can leave the money in a couple of years, the santander major isa will give you 2.8% fixed for 2 years. 123 account holders get a better interest rate on the major isa.

Both accounts take transfers.

Mickygg

I wanted to open Isa now and pay in after 6th April as well.You'll need to check the t&cs for this Isa. The major isa says payment must be received within 14 days of opening, but I'm not sure about the instant access one.
To be honest i think this may be why santander have most of their ISAs maturing 1st may, so it avoids lots of transfers into their top rates.

VodkaSorbet

Mickygg wrote: »

You'll need to check the t&cs for this Isa.

Ah OK will do - I was just wondering if there was some sort of ISA standard rule on this.

I'm looking to transfer to another bank now.

Still not sure if I am right to take such a low rate just to keep the money in the tax-free wrapper though!

ColdIron

Mickygg wrote: »

The major isa says payment must be received within 14 days of opening

What it actually says is that the transfer application must be received within 14 days, the payment may take place after this, as long as all payments are received by 31/5 you're good

I opened mine 22/03 and my 1 year fix from Metro Bank will be transferred 11/4 (or thereabouts)