ISA Transfer

James_Bond_007

Good evening, let me begin by offering you a beverage of your choice :beer:.

I notice by your threads that you may be well versed with banking and ISAs. Which brings me to an interesting question.

Miss. Money Penny has a 2 year cash ISA that is going to mature at the end of this month. Upon maturity she wants to transfer the monies to a 3 year cash ISA with another bank (say Bank . In order to do this she needs to open the ISA account with Bank B before the end of the month and state (on the ISA transfer form) that she wants to transfer the money upon maturity. The transfer takes approximately 2 weeks. This means that she will loose interest from the time the new ISA account is opened until the transfer.

Is there a way that the transfer can be made on the day the new ISA account is opened (so that no interest is lost)?

Cheers and thanks in advance for reading this post. Enjoy your drink.:beer:

Aidanmc

I will have a vodka martini thanks☺
I think you will have to wait until the transfer is processed after maturity, 2 weeks is maximum. Most cash isa transfers i have done recently have taken less than 7 days
Cheers

masonic

The first step of the transfer process is for the providers to exchange information about the transfer, then they will agree the transfer date (taking into account the instructions provided on the transfer form). This process takes a few working days and can be done in advance of the account maturing.

The transfer date can be set as the maturity date of the existing ISA, or the day after. Depending on the providers involved, a faster payment could be sent the same day. Otherwise a cheque would be sent and this would introduce a 1-4 working days delay.

Reed_Richards

You may find that the new ISA will give you interest from the date the transfer application takes effect (which should be the day the old ISA matures) rather than the date on which the money actually arrives into the account. Not all ISA providers do this but some certainly do. This arrangement gives both the incoming and outgoing financial institutions the luxury of being slow and incompetent about the transfer rather than setting-up mechanisms to do the same-day transfer that is perfectly possible in this day and age.

I'll take a 1980s vintage Aqua Libra please James, from your extensive cellar, as I feel that my alkaline balance needs to be restored.