Closing HSBC isa and transferring funds to Santander current account

ggcrisp

I have just switched banks from HSBC to Santander, due to Santander's 3% in credit interest (2.4% after tax). However I still have a loyalty ISA open with HSBC, can I ask HSBC to close this and transfer the funds to my new Santander current account?

dzug1

You can just close it and move the funds yourself as it's not being transferred into an ISA


Are there any closure penalties in the ISA? Indeed are you still entitled to hold it no longer being a customer?

ggcrisp

Thanks for replying so quickly dzug1. If I close the account as you say, where will the money go, as I no longer have a current account with them?

There is no closure charge or notice period required. I assume that the interest rate I receive will be lower than when I was a 'loyal' customer - however I'm struggling to find much info on this.

dzug1

If the only way of getting money out was to the linked current account then you will have to ask them to make the transfer.


Unless they will give you a cheque?

ManAtHome

Or you could do an ISA transfer to Santander (Direct ISA), then just move the cash into their current account.

ggcrisp

Thanks everyone, just phoned hsbc and they were able to transfer the money into my Santander account! :D