Interest Issue - Fixed Rate Cash ISA

Kings_Knight

"As I said earlier, there are two parties involved, so you may not find out whose decision it was, but you can't simply assume it was the sole responsibility of the receiving provider, unless they've said that they chose to use this mechanism."


I have previously checked the situation with the old provider - they informed me that only " a cheques payable to .. " was given to them and they confirmed to me that they would have been quite happy to pay via ET if the new provider had requested transfer that way.

" Have they explicitly said that they'll pay 361 days worth of interest or have they said that the maturity date is 361 days after the money was paid into the account?"



They have explicity said 361 days interest period and the maturity date is one year ( 365 days ) from the date the cheque was received

Kings_Knight

"Fixed rate accounts, like all accounts, calculate interest daily on the cleared balance of the account. If you open a fixed term account, then it will state within the terms whether the fixed term begins once cleared funds are received, or if the term begins immediately upon account opening.
In the first case, the account would have been open for 369 days and you would have received 365 days interest.
In the second case, the account would have been open for 365 days and you would have received 4 days interest on a £0 balance, followed by 361 days interest on the transferred balance when it cleared.
In both cases, the interest rate is the same.
There is no requirement for a S&S ISA to be transferred electronically and most S&S ISA providers will not transfer funds electronically. There is no reason to think the bank is at fault in any way."


I do understand what you say in the first part so noted.
In the second part - I have got 2 S&S ISA's which involved several transfers out. In my experience there has been no indication that the providers were actually unwilling to do ET. Each provider has said to me in two seperate cases ( The one in question and a different one) that they would transfer electronically if they were given appropriate details. They are not being given those details.

masonic

Kings_Knight wrote: »

" Have they explicitly said that they'll pay 361 days worth of interest or have they said that the maturity date is 361 days after the money was paid into the account?"

They have explicity said 361 days interest period and the maturity date is one year ( 365 days ) from the date the cheque was received

That seems entirely consistent with how any account would work. Perhaps you would have preferred for them to have extended the term of the account, but on the bright side you will be able to access the money 4 days earlier and will likely be able to take out another fix at a higher rate.

Thrugelmir

Kings_Knight wrote: »

Point 1 - I do not specifically know that they could not have handled an electronic transfer but it is highly likely that they could have. The old provider could have transferred that way if they had been given bank details ( viz by BACs ).

All of which would require considerable administration for a one off payment. £7 is little to pay for this.