Dot ComUnity Credit Union - ISA

Ed-1

MARTYM8` wrote: »

I assume its this - as per their joining letter. Unless they have changed it?

Bank Name: Unity Trust Bank
Bank Sort Code: 08-60-01
Bank Account No: 20302380
Your Membership Number XXXXXXXX (ESSENTIAL to quote)

But that's not an ISA - presumably it's a current account in their name with Unity Trust Bank and so a new provider can't transfer that account (as they'd send the request to Unity Trust Bank not DCU) and there's nowhere to write a reference to any membership number on a transfer form, just a roll number.

EDIT: You'd probably have to state DCU / EBCU on the transfer form and leave the account details blank and inform DCU directly that you're transferring out.

MARTYM8`

Ed-1 wrote: »

But that's not an ISA - presumably it's a current account in their name with Unity Trust Bank and so a new provider can't transfer that account (as they'd send the request to Unity Trust Bank not DCU) and there's nowhere to write a reference to any membership number on a transfer form, just a roll number.

EDIT: You'd probably have to state DCU / EBCU on the transfer form and leave the account details blank and inform DCU directly that you're transferring out.

Isn’t that the case with any ISA transfer – its their bank account where funds are paid in and its tied to you via your account/membership number which you quote. And you let DCU know so they can do the manual adjustments needed with their bank?

If you transfer an ISA from Nationwide you quote for example

Sort code 07-00-93
Account no 33333334 and
Your roll/account number

Clearly Nationwide doesn’t have separate bank accounts for all of its 10 million members – so the same logic applies doesn’t it as what else can you do?

http://www.nationwide.co.uk/support/support-articles/manage-your-account/sort-code-and-account-number-information

Ed-1

MARTYM8` wrote: »

Isn’t that the case with any ISA transfer – its their bank account where funds are paid in and its tied to you via your account/membership number which you quote. And you let DCU know so they can do the manual adjustments needed with their bank?

If you transfer an ISA from Nationwide you quote for example

Sort code 07-00-93
Account no 33333334 and
Your roll/account number

Clearly Nationwide doesn’t have separate bank accounts for all of its 10 million members – so the same logic applies doesn’t it as what else can you do?

http://www.nationwide.co.uk/support/support-articles/manage-your-account/sort-code-and-account-number-information

Yeah, your right. I've only ever had experience of transferring ISAs where the ISA has it's own unique sort code and account number rather than identify it by the roll/reference number.

darren72

The letter implies that you just let them know if you want to transfer out, yet I thought we couldn't !??

masonic

Some initial thoughts and questions for anyone actually pondering whether or not to take up this offer to consider:

Dividend bearing shares
Are these the same or different shares than the ones being offered in the basic share account? The comparison with the past dividends suggests they are the very same (deferred) shares. If the same, why is there FSCS protection in this case when there was no FSCS protection before?

FSCS protection
There are two different FSCS protections, one applying to cash deposits and one applying to investments. The former, £85k protection, promises to repay any capital and associated interest. The latter, £50k protection, protects only against mismanagement, insolvency and fraud, not investments failing to pay a dividend or losing capital value. What capital protection, if any, does an FSCS guarantee offer on the underlying shares in this context?

Tax efficiency
Dividends on shares would not attract any income tax for basic rate taxpayers. It may be better to preserve the money in your ISA wrapper for cash savings (with interest) or investments that generate capital gains.

masonic

Ed-1 wrote: »

Yeah, your right. I've only ever had experience of transferring ISAs where the ISA has it's own unique sort code and account number rather than identify it by the roll/reference number.

The minimum that is needed to effect a transfer is your NI number. An account number or reference is also needed when you have more than one ISA with the same provider. It tends to be the major banks that have sort codes and account numbers for direct BACS-type payments. Others have a roll number and some just have a reference (not always numerical).

darren72 wrote: »

The letter implies that you just let them know if you want to transfer out, yet I thought we couldn't !??

You can let them know you want to transfer out. Whether or not they will comply is another matter...

Steve3S13

I'm in for a 5yr NISA as they call it. So no letter will be coming my way. What will happen over the next 4 years is anyone's guess. Will I still be under the same rules even.
I have no confidence or expectation that in just over 4 years time I will receive 5 years of interest at 3.75%
So my inclination is to bite the bullet and take a loss of 1 years interest now, better than having 4 years of not knowing I feel and withdraw with a penalty as soon as I can

masonic

Steve3S13 wrote: »

I'm in for a 5yr NISA as they call it. So no letter will be coming my way. What will happen over the next 4 years is anyone's guess. Will I still be under the same rules even.
I have no confidence or expectation that in just over 4 years time I will receive 5 years of interest at 3.75%
So my inclination is to bite the bullet and take a loss of 1 years interest now, better than having 4 years of not knowing I feel and withdraw with a penalty as soon as I can

They will have to give you notice of the variation to your T&Cs if they are intending to do as they say. They will also be required to give you a free exit if you reject the new terms. So it might be worth waiting just a little longer.

Steve3S13

with a free exit.......what would I get? interest up to the date I moved?
thanks

Mr_Doubtfire

So what should we do now? Personally I want to transfer my ISA to another provider on 5th May (providing the 'voluntary' restrictions have been lifted by then - here's hoping). Should I write to DCU to inform them that I am going to transfer my ISA and tell them that I reject any changes to the T&Cs of my ISA before or after 5th May? I certainly do not want to end up in the situation where my ISA is changed from a Cash ISA to an investment ISA which doesn't have FSCS backing for the capital and interest. Any advice or thoughts would be greatly appreciated.