Transferring money out of NSI Cash ISA

Cyril392

Hi,

Did a quick search on the MSE forum, but couldn't find anything specifically about this item (happy to be told different/redirected); so... with the introduction of the latest rubbish rate on its Direct ISA, I looked to "ditch 'n' switch" NS&I for the current best rate. However, it seems as though the transfer system is not quite as transparent as I was led to believe, certainly in the case of NS&I. Having selected Virgin (ISAs from other financial institutions are available) as the preferred destination for my hard-earned, I had to go a long way down the sign-up road before being told by Virgin's web-site that "NS&I wasn't on its list (?) of financial institutions from which it could accept transfers in"! Not wanting to spend an inordinate amount of time going through the same tortuous process over and over with other money-houses, only to discover the same response at the end of it all, and knowing what a miserly bunch of skin-flinting gits make up Treasury Island policy, I am beginning to wonder if ANYONE has EVER successfully managed to transfer money FROM an NS&I ISA directly (somewhat ironic) to an external one; or is the inability to transfer ISA funds out of NS&I an across-the-board policy/ruse to prevent investors exiting en-masse after the interest-rate reduction of 24 September 2018? Any advice/help/guidance/offers of free cash welcomed.

Berkshire_Beancounter

I had a feeling that I did successfully transfer an ISA from National Savings, but annoyingly I can't find my historic paperwork to confirm this and who I transferred it to. It was at least seven years ago now though, so banks' processes about ISA transfers may have changed in this time. I fear this falls into the 'useful as a chocolate teapot' category of reply!

Cyril392

Not a problem BB. As I said, all responses welcomed.

IanManc

The NS&I Direct Isa brochure says:
"You can transfer to another provider. You may be able to transfer the Direct ISA to another provider and retain your tax benefits. To do this, you must contact the new provider. We’ll add any interest earned to your balance before we transfer it. We will do the transfer within the timescales set by law. This is five working days from the time we receive the new ISA provider’s request. The transfer must include all deposits made in the current tax year."

It was very easy to find.

Your problem appears to have been with Virgin, not NS&I.:)

Cyril392

Thanks IanManc. Yes, I was aware of the entry in the brochure; and yes, you are right in saying that the problem was at the Virgin end of the proposed transfer in the example I gave.

However, the point I was seeking to address is, having been excluded from transfers to Virgin, does NS&I actually appear on ANY OTHER ISA provider's list. While NS&I states that it doesn't actively prevent its customers from transferring funds, has it, for example, somehow excluded itself from transfers to ALL other banks - in other words, is it saying one thing to its customers, but then, in somewhat clandestine fashion, blocking ISA transfers at its interface with ALL of its rival banks? One of the most expedient ways to gauge this is to ask that question on this forum. It's early days, but so far no-one has posted anything to suggest that transferring ISA holdings out of NS&I is, in reality, a transparent process - or even achievable at all.

Novice_investor101

I opened a NS&I cash ISA, possibly about 2 years ago or less. Immediately after I opened it, the 1% interest rate went down to 0.75%!

I transferred it about two months after opening it - to Virgin! It took about a week for the money to move as NS&I sent a cheque rather than an electronic transfer. Maybe Virgin have now decided not to accept them due to that.

I've moved the cash around various Cash ISA's within Virgin, everytime a new one is available with a slightly better rate.

pafpcg

Cyril392 wrote: »

...... does NS&I actually appear on ANY OTHER ISA provider's list.

I needed to check my IWeb S&S ISA account this morning so whilst I was logged in I took at look at their list of ISA providers which will transfer into an IWeb S&S ISA - National Savings in Glasgow is on their list.

Note: NS&I is NOT on the Nationwide list of ISA providers for allowing electronic ISA transfers. IWeb transfers are paper only. Could the Virgin Money list also be only for electronic transfers?

Cyril392

Thanks to all. Aaahh! the NI101 and pafpcg replies are intriguing! It could be that Virgin (specifically) might have changed its policy due to the lack of an electronic interface with NS&I (i.e. at the NS&I end). However, it may not be the case that NS&I have a blanket ban on transfers out. Partly based on my own experience with the Virgin attempt, the cynic in me wonders whether NS&I only exclude those money-houses whose rates are noticeably higher than theirs, and therefore pose a threat to its business? Having said that, the market forces that determine the rate paid by NS&I differ somewhat from other (private sector/commercial) institutions. Just wonder if there is enough mileage in this to get ML involved? One thing's for certain - NS&I don't make it as easy to transfer ISA holdings out as one might hope.

Cyril392

As a PS, pafpcg "Could the Virgin Money list also be only for electronic transfers?" No, I don't think so - because I was, in fact, trying to make the transfer electronically at the time.

xylophone

Ring your chosen provider to check that a transfer in from NS&I will be accepted.

https://www.thisismoney.co.uk/money/saving/article-1583864/Best-savings-rates-Isas-Cash-Isa-accounts-fixed-rate-Isas.html

Peelerfart

I transferred out of NSI to shawbrook,took about a week and yes they required a wet signature. It was all pretty painless though.

If NSI don't want the money, shawbrook had no problems taking it and paying better.