Closing a Santander ISA

Seamonster_2

I have a Santander ISA Saver that has gone down to a pitiful rate, so I want to close it and withdraw the cash. The website seems to suggest I need to visit a branch or write a letter, which seems silly as I've always operated the account online. Is anyone able to confirm whether or not Santander allow you to close accounts online?

ManAtHome

No they don't, and they are not the only ones. You can of course withdraw all the cash and leave it as an empty account then mop up the dregs of interest at some future time.

BUT - do you want to take the cash and spend it/ put it into non-ISA savings, or are you planning to put it into another ISA?

Seamonster_2

Haven't decided yet. I looked at the Santander 123 account that some on here favour, but it looks like hassle for not that much benefit as a higher-rate taxpayer.

I have another cash ISA with Virgin that is still paying 1.5%. The Santander ISA has £10K in it, so I might put half of it into the Virgin ISA (not sure if it takes transfers but that won't matter come July) and put the rest towards the mortgage.

ManAtHome

Only 'easy' option would be to upgrade the Santander ISA to their 2 year fix at 2.3%. As you say, the changes in July make it easier to rebuild your tax-free swag - depends what rate you're paying on the mortgage I suppose...

Gordon_the_Moron

The 2.3% ISA is only available to 123 customers.