To move or not

Gordon_the_Moron

I currently have this year's ISA subscription in a Barclay's tax beater cash ISA, that is staying where it is until the rate drops.

My subscriptions from previous years are in a Bradford and Bingley E-Isa, which is going up to 6.05% at the end of the month, Kent Reliance will be offering 6.21%.

Do you think for the added 0.16% benefit it is worth moving, I'm not thinking about the fact that I am earning less interest on it so much as the fact that if I close the B&B account and then Kent Reliance's rate drops, or doesn't move with a rate rise (I wouldn't be surprised if more come) and B&B becomes a market leader again, what do I do? If I close that account I can't re-open it since they don't offer the product any more

Gordon_the_Moron

I forgot to mention, I don't care whether the product is online or not particularly, I'd rather go for an online product so I can view balance online but I'd settle for an offline account for a better interest rate happily.

Da Moron

YorkshireBoy

Gordon_the_Moron wrote: »

Do you think for the added 0.16% benefit it is worth moving

In a word, no!

A 0.16% premium will mean it will take 39 days for each day of lost interest in transit to recover.

Even if B&B send it on a Monday (thereby avoiding a weekend) and Kent Reliance credit as soon as they receive the cheque (and before it clears like YBS, Halifax, et al do), the best you can hope for is a 2 day loss - meaning it will be the thick end of 3 months before you 'benefit'.

As you allude to in your post, a lot can happen in that time - with 2 institutions and the BOE MPC all liable to make changes.

jem16

Personally I don't think it's worth the hassle.

Even with £25,000 it's only about £40 in interest.

Gordon_the_Moron

YorkshireBoy wrote: »

In a word, no!

A 0.16% premium will mean it will take 39 days for each day of lost interest in transit to recover.

Even if B&B send it on a Monday (thereby avoiding a weekend) and Kent Reliance credit as soon as they receive the cheque (and before it clears like YBS, Halifax, et al do), the best you can hope for is a 2 day loss - meaning it will be the thick end of 3 months before you 'benefit'.

As you allude to in your post, a lot can happen in that time - with 2 institutions and the BOE MPC all liable to make changes.

Good point, I never thought of that, it is staying where it is. If I am going to move it anywhere it will be next April when the Barclays rate drops, that will almost inevitably getting transferred so if there is a much better rate out there then I will move both together.

jem16 wrote: »

Personally I don't think it's worth the hassle.

Even with £25,000 it's only about £40 in interest.

If 1 million customers thought like that they would all be £40 worse off and the bank would be £40 million better off. The above post has persuaded me though.

jem16

Gordon_the_Moron wrote: »

If 1 million customers thought like that they would all be £40 worse off and the bank would be £40 million better off. The above post has persuaded me though.

Yes you're correct.

However having attempted to transfer from Halifax to Abbey on 10th April, I gave up on 24th June having had numerous problems which are still not resolved.

The difference in those two accounts is 0.5% - something which I did think was worth it.

Gordon_the_Moron

I've never been a customer with Abbey but personally I've heard nothing but bad stories so I wouldn't go with them unless they came up with something seriously irresistable (I'd have said that about Barclays before they issued the tax beater cash ISA though lol)