Dot ComUnity Credit Union - ISA

darren72

Archi_Bald wrote: »

Somebody reported in post 30 that you can transfer in prior years ISAs without limit although they normally limit investments to £40,000 before needing trustee approval.

Best to ask them specifically about your situation. That's what I did.

I hadn't noticed that myself - Has anyone submitted a transfer for more than £40,000 ? - Has there been any issues ?

Thanks

hgt

darren72 wrote: »

I hadn't noticed that myself - Has anyone submitted a transfer for more than £40,000 ? - Has there been any issues ?

Thanks

Yes, I submitted a transfer for more than that amount (after confirming it would be OK via e-mail first). The transfer hasn't actually happened yet, but as far as I'm aware everything is being processed at the moment.

neil324

Just had confirmation.

No limits, FSCS mentioned, extra allowed to be deposited in July. Concessionary membership rate applies for the ISA.

Archi_Bald

Got some transfers in completed now. It appears DCU process transfers by cheque, and the credit is effective from the day they receive the cheque.

The entire transfer took between 13 and 15 calendar days from my original requests to completion.

crumpetman

Does that mean you are out of pocket for nearly half a months worth of interest?

I am undecided whether or not to transfer my soon to mature Santander ISA to DCU or "upgrade" it to the 2.3% fixed ISA. The extra 0.7% does not seem so worth it if I could lose half a months interest in the transfer to DCU and then possibly another half a month if/when I transfer out next year.

MRMX9

crumpetman wrote: »

Does that mean you are out of pocket for nearly half a months worth of interest?

I am undecided whether or not to transfer my soon to mature Santander ISA to DCU or "upgrade" it to the 2.3% fixed ISA. The extra 0.7% does not seem so worth it if I could lose half a months interest in the transfer to DCU and then possibly another half a month if/when I transfer out next year.

Surely the only potential loss of interest is from the day your current provider raises the cheque to the day DCU get it - which should be no more than 3 working days surely depending on Royal Mail.

DCU do of course receive income via faster payments. So any current year ISA payments made by an online transfer go in the same day earning interest. I made a payment and within 3 hours it was in my account earning interest – which is a lot more efficient than some big building societies I have dealt with.

So its swings and roundabouts – and given that the account is paying nearly double the interest rate for the next best one year fixed rate cash ISA a minor issue your transfer cheque would have to get lost in the post for 6 months to lose the benefit of the rate offered compared to the next best provider!:)

Ed-1

crumpetman wrote: »

Does that mean you are out of pocket for nearly half a months worth of interest?

I am undecided whether or not to transfer my soon to mature Santander ISA to DCU or "upgrade" it to the 2.3% fixed ISA. The extra 0.7% does not seem so worth it if I could lose half a months interest in the transfer to DCU and then possibly another half a month if/when I transfer out next year.

MRMX9 wrote: »

Surely the only potential loss of interest is from the day your current provider raises the cheque to the day DCU get it - which should be no more than 3 working days surely depending on Royal Mail.

DCU do of course receive income via faster payments. So any current year ISA payments made by an online transfer go in the same day earning interest. I made a payment and within 3 hours it was in my account earning interest – which is a lot more efficient than some big building societies I have dealt with.

So its swings and roundabouts – and given that the account is paying nearly double the interest rate for the next best one year fixed rate cash ISA a minor issue your transfer cheque would have to get lost in the post for 6 months to lose the benefit of the rate offered compared to the next best provider!:)

As part of an ISA transfer, the new provider is required by HMRC rules to backdate interest to the last day it did not receive interest with the old provider, so there should never be a day where the funds are not earning interest in an account as part of an ISA transfer.

crumpetman

That's fantastic, I did not know about the backdating of interest.

Archi_Bald

crumpetman wrote: »

Does that mean you are out of pocket for nearly half a months worth of interest?

No - the time I listed was from me posting the form until completion of the transfer. This is within the BBA process boundaries but I am not sure DCU is a member of BBA. I only had a couple of non-interest days (see below), and given I will get 3% from now on, I won't be chasing DCU for the minute amount, unless they broke some HMRC rule.

Ed-1 wrote: »

As part of an ISA transfer, the new provider is required by HMRC rules to backdate interest to the last day it did not receive interest with the old provider, so there should never be a day where the funds are not earning interest in an account as part of an ISA transfer.

I am not sure there is an HMRC rule like that. If there is, DCU aren't complying with it. Can you post a link to the HMRC rule please?

I had one ISA leave the old provider on April 17, it was credited April 23. The other one left the old provider on April 23 and was credited April 25. DCU told me that they will credit the transfer amount from the day the receive the cheque.

Ed-1

Archi_Bald wrote: »

No - the time I listed was from me posting the form until completion of the transfer. This is within the BBA process boundaries but I am not sure DCU is a member of BBA. I only had a couple of non-interest days (see below), and given I will get 3% from now on, I won't be chasing DCU for the minute amount, unless they broke some HMRC rule.



I am not sure there is an HMRC rule like that. If there is, DCU aren't complying with it. Can you post a link to the HMRC rule please?

I had one ISA leave the old provider on April 17, it was credited April 23. The other one left the old provider on April 23 and was credited April 25. DCU told me that they will credit the transfer amount from the day the receive the cheque.

It's stated in a few documents:

1.7 of this document http://www.oft.gov.uk/shared_oft/super-complaints/OFT1246rev.pdf

"The new transfer guidelines also stated that the provider of the new cash ISA should backdate interest to the first day where interest no longer accrues on the funds being transferred, and should start paying the new interest rate from working day 16 at the latest. These key changes came into effect on 1 January 2011."

Note 4 (bottom left) of http://www.lloydsbank.com/assets/media/pdfs/savings/isa_transfer_guidelines.pdf

"Your new provider will backdate interest to the first day where interest no longer accrues on the funds being transferred from your old ISA. In addition, your new provider will start paying the new interest rate from day 16 at the latest regardless of whether the transfer has completed within the standard 15 business
day timeline (pended cases excepted)."

I recently transferred an ISA to Santander and they paid in the cheque and then after it had cleared another transaction appeared 'adjusted interest value credit date'. They backdated interest to the date on the cheque (day the old ISA was transferred out).