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Britannia Prime Fixed Rate Cash ISA Transfer Penalty

I decided to move my 2012/13 and 2013/14 cash isas from Britannia and, although this is not being done in year, I have been told they are deducting £150.62 as a penalty before transfer. Has anyone else had the same experience?

Comments

  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    What do your T&Cs say about transfers? What are the fees for?
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
    Most fixed rate ISAs apply a penalty for closure or withdrawal.

    You are closing the accounts (albeit by the ISA transfer process).

    What rates are you moving from? And too?
  • I have checked and didn't realise I had a two year fixed rate...only had one year ISAs before. The terms say there is a 180 day interest penalty. i should have checked first but just changed bank from the Co-operative (after 31 years) and wanted to move ISAs as well. I was going to leave most other savings with Co-op/Britannia but will move them as well now in the light of this charge.
  • badger09
    badger09 Posts: 11,744 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Nailsea wrote: »
    I have checked and didn't realise I had a two year fixed rate...only had one year ISAs before. The terms say there is a 180 day interest penalty. i should have checked first but just changed bank from the Co-operative (after 31 years) and wanted to move ISAs as well. I was going to leave most other savings with Co-op/Britannia but will move them as well now in the light of this charge.

    As PeacefulWaters said, most (all I think) Fixed Rate/Fixed Term ISAs have a penalty for early withdrawal.

    Presumably, you were happy with the rates offered when you subscribed to those ISAs. Unless you have found a much better rate elsewhere, why on earth are you moving them?

    If it is because of the problems surrounding Co-op bank - please remember, its as safe a home for your savings as any other bank covered by the FSCS up to £85k
  • jimjames
    jimjames Posts: 19,025 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Nailsea wrote: »
    I was going to leave most other savings with Co-op/Britannia but will move them as well now in the light of this charge.

    Why would you move more money as a result of being charged?

    Surely knowing the charge would mean you move less or none to avoid being penalised and losing money?
    Remember the saying: if it looks too good to be true it almost certainly is.
  • innovate
    innovate Posts: 16,217 Forumite
    10,000 Posts Combo Breaker
    If there are no further penalties, moving money from the COOP to elsewhere could be a very sensible move since their interest rates are amongst the worst.
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