ive had an isa for 2 months, but I want to close it?

evosy1978

Ive had an isa leeds issue 53. For 2 months. If I transfer the money to a new isa, im presuming I wont gain no interest and also I wont lose nothing except the 2 months interest?

Am I correct.

Archi_Bald

if the ISA can be transferred without penalty, you will not lose any interest. You need to find an ISA that allows transfers in, and request the new provider to transfer the Leeds ISA.

amiehall

I googled this and it appears to be a 2 year fixed rate ISA is this correct? Because it makes a big difference to the answer to your question.

Archi_Bald

Very true. Also, the date of the last deposit into this ISA is very important. If that date was before April 6 2014, then the ISA might be best left to mature.

If it is that ISA, then the withdrawal rules are:

Withdrawals/transfers can be made of up to 25% of your capital investment without notice or loss of interest prior to maturity (1 May 2016). If you exceed this limit, the account will be subject to 120 days loss of interest or an equivalent amount on the amount withdrawn/transferred.

So, if you e.g. deposited £500, you annual return would be £8.75 (500 x 1.75%)

If you now (60 days after deposit) want to transfer out the entire £500, you you need to pay £8.75 / 365 x 120 = £2.87. I am not sure whether they would credit you any interest before they make the subtraction, but if they did, it would be calculated as £8.75 / 365 x 60 = £1.43.

evosy1978

My mistake. Its issue 55. 1 year at 1.75%. Its been in 60 days.

I have £3500 in it. There is 120 days penalty on the interest.

If I drew it out now I would lose the 60 days interest that it has been in there.

But I want to confirm they dont deduct another 60 days interest out of my £3500?

Also to confirm if I move to a new isa with a higher interest rate of about 2.5%, then over the next 12 months I would re coup the lost 60 days interest from this isa?

Thank.

amiehall

I'm pretty sure they would deduct the full 120 days interest so you would get out less than you put in.

Archi_Bald

You really need to confirm with Leeds BS how much your penalty is.

As to whether you could recoup any loss in a different ISA first depends on what the loss is, and secondly the interest you can get in another ISA. Which ISA did you have in mind?

And why are you fixated on ISAs if your savings are £3,500? Split them across 2 TSB Plus accounts and get more interest than any ISA will pay you.

jimjames

evosy1978 wrote: »

My mistake. Its issue 55. 1 year at 1.75%. Its been in 60 days.

I have £3500 in it. There is 120 days penalty on the interest.

If I drew it out now I would lose the 60 days interest that it has been in there.

But I want to confirm they dont deduct another 60 days interest out of my £3500?

Also to confirm if I move to a new isa with a higher interest rate of about 2.5%, then over the next 12 months I would re coup the lost 60 days interest from this isa?

Thank.

By the sounds of it you don't need the money if you are looking to put it elsewhere which begs the question, why are you wanting to move it after only having it in there for 60 days? It seems rather pointless to lose money by signing up to a deal and then closing it again getting back less.

Take the penalty into account and there is probably no point moving it.