Changing banks - what happens to ISA?

Spinky77

Hi there

I feel having been with my bank, HSBC, since a kid it is time to leave my loyalty behind and switch to First Direct. I have always been a bit reluctant to do so but now is the right time as I am saving up for a house deposit so could do with the extra savings.

I have not been putting money into my ISA this tax year as I am waiting for the Help to Buy but it has a fair amount in it and is earning good interest. I also have a regular saver with HSBC with the high interest ending in August (I may wait to take the plunge then). What will happen to these accounts? Do they transfer as well? I am worried the ISA will seem like I have put money into it and therefore I won't be able to take advantage of the H2B straight away.

Does the 7 day switch just apply to current accounts or transfer the other accounts too?

Hope that makes sense and someone can help.

Thanks

grumbler

Switching is for current accounts only.

Nothing happens to ISA unless it's some special one for current account holders only, but you can't have the Regular Saver without a current account.

now is the right time as I am saving up for a house deposit so could do with the extra savings.

I don't understand why you want to switch; you can just open an account with FD without switching. If it's the bonus that you want, then open a new account with any bank, even with HSBS, and switch it.

Spinky77

I am wanting to switch because of the £125 odd bonus you get for going to FD and you have to pay in £1,000 to get this bonus plus their interest rates.

I think I am best waiting til after my Regular Saver finishes either way.

Thanks grumbler

grumbler

Spinky77 wrote: »

I am wanting to switch because of the £125 odd bonus you get for going to FD and you have to pay in £1,000 to get this bonus plus their interest rates.

£1000 doesn't have to be wages/salary.
I don't think it's needed for the "interest rates".
For avoiding the current account monthly fee there are much simpler ways.

Anthorn

Watch out for Nationwide: Some of their best-paying savings accounts including ISAs are for existing accounts only and cannot be transferred in. In that case you could withdraw the ISA balance at your old bank and close it but in that case the withdrawn amount will likely count against this year's allowance if you then deposit it in a new ISA.

eskbanker

Anthorn wrote: »

Watch out for Nationwide: Some of their best-paying savings accounts including ISAs are for existing accounts only and cannot be transferred in. In that case you could withdraw the ISA balance at your old bank and close it but in that case the withdrawn amount will likely count against this year's allowance if you then deposit it in a new ISA.

Fortunately, by specifically looking at opening an account with FD, OP is somewhat unlikely to be affected by anything to do with Nationwide!