Where to move ISA?

CashMoney

@Someone2088 - thanks for your reply, so I've had this ISA with Santander coming upto 3 years in May. Looking at my online banking statements I have been getting interest payout on the ISA at end of every March and then another smaller amount beginning of every May. When would be the best time to do the transfer so as to not lose out on any interest?

eskbanker

CashMoney said:

@Someone2088 - thanks for your reply, so I've had this ISA with Santander coming upto 3 years in May. Looking at my online banking statements I have been getting interest payout on the ISA at end of every March and then another smaller amount beginning of every May. When would be the best time to do the transfer so as to not lose out on any interest?

You won't lose out on any interest whenever you transfer it, unless it's a fixed term product - if it's the account I'm thinking of, it's an easy-access one with a fixed interest rate, but if transferring the money prior to rate expiry, you'd still receive pro rata interest up to that date, regardless of when interest payments would normally be scheduled....

xylophone

But, wait until your current ISA has matured before you transfer it, otherwise you will not receive the interest payment for having had the money in that ISA for however long it's been there.

Not the case - the interest to date with be added to the amount transferred to the new ISA.

The OP will need to contact Virgin to arrange the transfer - the transfer should give him the option to transfer either immediately or at a specified date.

CashMoney

Ok so now I'm confused with conflicting opinions lol. Should I wait till end of financial year and then transfer? Should I wait till May and complete the 3 years of holding the ISA with Santander and then transfer? I am still getting 1.50% with Santander(till ISA matures) as opposed to transferring to Virgin and getting 1.31%. 

eskbanker

CashMoney said:

Ok so now I'm confused with conflicting opinions lol. Should I wait till end of financial year and then transfer? Should I wait till May and complete the 3 years of holding the ISA with Santander and then transfer? I am still getting 1.50% with Santander(till ISA matures) as opposed to transferring to Virgin and getting 1.31%. 

You'd earn the most interest by transferring it as soon as the rate drops from 1.5%.

colsten

You must ask Virgin to transfer your ISA. Don't do it yourself, because

1. you would lose your ISA wrapper
2. you wouldn't be able to pay £60K into the Virgin ISA in one go. Only they can do this, by executing your transfer request 

Find the Virgin ISA transfer request form - - it's probably part of the application for their ISA.

tigerspill

I wend with the Post Office ay 1.35% for one year.

roddydogs

A one year fix aint easy access, is it. The Virgin has a 2 withdrawals per year clause.

Someone2088

CashMoney said:

Ok so now I'm confused with conflicting opinions lol. Should I wait till end of financial year and then transfer? Should I wait till May and complete the 3 years of holding the ISA with Santander and then transfer? I am still getting 1.50% with Santander(till ISA matures) as opposed to transferring to Virgin and getting 1.31%. 

Financial year is not the issue (that is only relevant for how much you can pay into an ISA- in the UK, you can deposit up to £20k per financial year in ISAs).

The main thing here is, if you are still within the term of the ISA you currently have (i.e. it is a 3 year fixed rate ISA, and you're still within the 3 years- it's less than 3 years since you opened the ISA, and the ISA has not matured yet), then wait until your current ISA matures, and you receive the interest for that fixed term before you transfer it to another provider.

When your ISA has matured, it will change (ISAs I've had in the past have said 'inactive' or something once they've matured, and you will see that the interest rate has dropped), then you need to instruct Virgin (or whoever you open the new ISA with) to transfer your existing (matured) ISA to them.

Whatever you do, do not withdraw the existing ISA in order to deposit it into the new one, otherwise it will eat up your ISA allowance for the year.

Spiggle

CashMoney,
If as suspected this is a year on year easy access Santander cash ISA you are NOT required to keep it open until the end of three years. From your original post it appears the interest rate is fixed for one year rather than a fixed term product. As stated by eskbanker, colsten and xylophone above it will pay the interest up to the date Virgin (or whoever your new provider is) transfers it to your new ISA.
DO NOT withdraw or transfer the funds yourself.
All the best,
Spigs