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What happens to ISA interest when I switch?
FairyElephant_2
Posts: 1,117 Forumite
Hiya,
Being totally fed up with Alliance & Leicester, DH & I are moving all our accounts from them to elsewhere.
Already sorted the current account, but now need to move the ISAs - we're going to Halifax Fixed rate ISA Saver which will pay us 6.20% for a year.
What I wonder is - what happens about the interest we should have already earned this year with A&L? Interest is normally paid annually at the moment. Will they make up the amount before the transfer? Or will they keep the account open and pay in the interest at the normal time, althgouh there won't be any capital left in there?
We are talking about ISA funds from previous years, not any from this year, as we haven't been able to save any yet this year!
Thanks for any advice....I know I could ask A&L - but not being able to get hold of them and keeping on being told the wrong thing are two of the main reasons for cancelling with them!
Cheers,
FE
Being totally fed up with Alliance & Leicester, DH & I are moving all our accounts from them to elsewhere.
Already sorted the current account, but now need to move the ISAs - we're going to Halifax Fixed rate ISA Saver which will pay us 6.20% for a year.
What I wonder is - what happens about the interest we should have already earned this year with A&L? Interest is normally paid annually at the moment. Will they make up the amount before the transfer? Or will they keep the account open and pay in the interest at the normal time, althgouh there won't be any capital left in there?
We are talking about ISA funds from previous years, not any from this year, as we haven't been able to save any yet this year!
Thanks for any advice....I know I could ask A&L - but not being able to get hold of them and keeping on being told the wrong thing are two of the main reasons for cancelling with them!
Cheers,
FE
The best advice you can give your children: "Take responsibility for your own actions...and always Read the Small Print!"
..."Mind yer a*se on the step!"
TTC with FI - RIP my 2 MC Angels - 3rd full ICSI starts May/June 2009 - BFP!!! Please let it be 'third time lucky'..... EDD 7th March 2010.
..."Mind yer a*se on the step!"
TTC with FI - RIP my 2 MC Angels - 3rd full ICSI starts May/June 2009 - BFP!!! Please let it be 'third time lucky'..... EDD 7th March 2010.
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Comments
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FairyElephant wrote: »What I wonder is - what happens about the interest we should have already earned this year with A&L? Interest is normally paid annually at the moment. Will they make up the amount before the transfer? Or will they keep the account open and pay in the interest at the normal time, althgouh there won't be any capital left in there?
We are talking about ISA funds from previous years, not any from this year, as we haven't been able to save any yet this year!
Thanks for any advice....I know I could ask A&L - but not being able to get hold of them and keeping on being told the wrong thing are two of the main reasons for cancelling with them!
Cheers,
FE
Although A&L pay interest annually, they calculate it daily. Therefore when you transfer your ISA, A&L will pay you interest up to the date that your money leaves them. This will be credited to your ISA on the day of closure and the (closiing) cheque will be sent on to the Halifax.
Halifax will also backdate your interest to the day after your A&L account is closed, so you won't lose any interest during the transfer.Please call me 'Kazza'.0 -
Thanks Kazza - that is what I was hoping would happen, but DH was putting doubts into my mind!The best advice you can give your children: "Take responsibility for your own actions...and always Read the Small Print!"
..."Mind yer a*se on the step!"
TTC with FI - RIP my 2 MC Angels - 3rd full ICSI starts May/June 2009 - BFP!!! Please let it be 'third time lucky'..... EDD 7th March 2010.0 -
And the good thing with that is you will earn interest on the interest you wouldn't have in the A&L account!
Everyones a winner (except A&L of course!)0
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