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ISA rate cut today - how to move
Comments
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Does anyone know if I can do a partial transfer from my defined access cash ISA to one of the fixed rate Virgin ISAs? I've read the product information but can't find any mention of this. I'm thinking of hedging my bets and putting half in a fixed rate account and half in a variable one.
I've found the answer myself:
If you'd like to move all of the money from your existing Virgin Money ISA to a new one with us, you can do this when completing your online application. Simply select the option to transfer in from another account and select the account you want to change over from the drop down list.
If you'd like to transfer part of the money from your existing ISA, apply for the new account and send us a secure message letting us know how much you'd like to move over (simply click on "messages" once you have signed in).0 -
Make sure that you open the new ISA with a zero balance and then send the secure message.If you'd like to transfer part of the money from your existing ISA, apply for the new account and send us a secure message letting us know how much you'd like to move over (simply click on "messages" once you have signed in).
The 2 year eISA issue 279 is still available for VM account holders at 1.81% as is the 5 year eISA issue 280 at 2.50%0 -
Before you all rush to switch your ISA have you considered the following?
Two days after your interest rate drops the Bank of England are meeting and are likely to raise interest rates.
Those rushing to switch their ISA to a fixed rate before their interest rate drops are potentially locking in their money to a lower rate than may be available after November 2nd.
Virgin inherited a lot of savvy savers when they took over nationalised Northern Rock. They may be using psychology to lock you into a lower rate before rates rise.
It's interesting that Virgin Money have the highest one year fixed rate on the link provided above. Have they factored in the rate increase, or will they nudge it up further after a rate increase?
An alternative strategy would therefore be spend two days on the 0.5% rate and see what happens on 2nd November. You will have more options available than locking your money away for at least a year although you may potentially lose these 'limited time' Virgin Money ISAs.
Without access the commercially sensitive information, as a saver, it is very difficult to know how to navigate this.0 -
I've had the same e-mail about my e-ISA rate dropping to 0.51%
I've been seriously considering the 2 year fix at 1.81% but also think maybe if IRs are on the up, I might not lose out too much overall by opting for the 1 year at 1.51% and may even gain a little over the 2 years.
That opens the three big questions 1) are they going up 2) by how much and 3) when will that filter through to saver rates?
But, looking at a two year investment of that 2-yr fix versus two 1-year fixes in a row then you would need the second one year fix to be 2.11% to come to about the same at the end of the two years. If you want the two one-years to better the 2-years then you're aiming for a 2.2% account being available this time next year?
Do we think that interest rates are going up so much that they will be offering 1 year fixes at 2.2% this time next year? I am not massively optimistic for that, so I would go for the two year fix, and if interest rates go bonkers and absolutely rocket up then maybe it will be worth sucking up the penalty and moving it, but I doubt they will move so far so fast.(Although I could be wrong, I often am.)0 -
brummierebel wrote: »Before you all rush to switch your ISA have you considered the following?
Two days after your interest rate drops the Bank of England are meeting and are likely to raise interest rates.
Those rushing to switch their ISA to a fixed rate before their interest rate drops are potentially locking in their money to a lower rate than may be available after November 2nd.
Virgin inherited a lot of savvy savers when they took over nationalised Northern Rock. They may be using psychology to lock you into a lower rate before rates rise.
It's interesting that Virgin Money have the highest one year fixed rate on the link provided above. Have they factored in the rate increase, or will they nudge it up further after a rate increase?
An alternative strategy would therefore be spend two days on the 0.5% rate and see what happens on 2nd November. You will have more options available than locking your money away for at least a year although you may potentially lose these 'limited time' Virgin Money ISAs.
Without access the commercially sensitive information, as a saver, it is very difficult to know how to navigate this.
I suspect Virgin have already factored in a rate rise when offering these new fixed rates. They are just getting ahead of the competition and trying to secure deposits. Even if rates rise I don't expect anything dramatic to happen to saving rates, mortgages of course will be clobbered immediately ! Even so, I wouldn't fix for more than a year.
Another scenario is that the BOE bottle it again, don't raise rates, Virgin realise they've jumped the gun and pull the rates.... Stick or twist
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How pathetic of Virgin to reduce the interest rate to only 0.51% a few days before an interest rate decision?
Could have been a ploy to encourage you to transfer to one of their fixed rate isa's.
I will be transferring my isa but I wont be staying with Virgin, I'm far from impressed with this company, not just with this issue but their customer service over other matters has left a lot to desire.0 -
How pathetic of Virgin to reduce the interest rate to only 0.51% a few days before an interest rate decision?
Could have been a ploy to encourage you to transfer to one of their fixed rate isa's.
To be fair, there's an interest rate decision every month. Should they never change rates because next month they might go up? After all, they have no hard information on what the Monetary Policy Committee will do until it happens (just like you or I).
If they had been hanging on waiting for a rise, they would have been waiting over 10 years...0 -
How pathetic of Virgin to reduce the interest rate to only 0.51% a few days before an interest rate decision?
When I'm getting 4.8% average on all my savings I wouldn't be bothering with a cash ISA in the first place I'm afraidRemember the saying: if it looks too good to be true it almost certainly is.0 -
Isn't an ISA only for those wishing to avoid paying tax on their interest?
Well I guess it does that, but I'd prefer to pay tax and get more interest in the first place. Irrelevant for most people when you can get £1000 of interest tax free anyway outside an ISA. Long term tax advantages of a S&S ISA are still well worth it thoughRemember the saying: if it looks too good to be true it almost certainly is.0
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