ISA rate cut, what to do?

notbritishgas

Albermarle said:

have you heard anything from Nationwide yet, they normally make contact to check the transfer is genuine.
Perhaps Easter will delay things.

I only did it on Thursday afternoon , so nothing heard yet, unsurprisingly .

Yes I did mine Thursday afternoon so wait til Easter is over for any action.

Tharweb

New_York_No1_fan said:

Tharweb said:

Those opening the Kent Reliance ISA's. I'm transferring my Nationwide Loyalty ISA, do I have to deposit £1000 as well as transferring? It states you have to make an initial deposit within 7 days, but if I transferred the money, the switch wouldn't go through in this time?

Deposit details
You must deposit the full minimum opening deposit amount within 7 days of your application being approved. You can fund your account by debit card (if we are able to successfully verify your identity electronically) or by sending your deposit electronically by bank transfer.
If your deposit is less than the minimum opening amount, it may be returned to your originating bank account, delaying the opening of your new account.
You can also fund your account by transferring an existing ISA from another provider. This request can be made during this application or within 30 days of your account being opened.

If you are opening the account by way of a transfer from another ISA provider then you will be fine to just complete application form and ISA transfer form. Once the account is open you have 7 days to pay in new money. You do not have to pay any new money into the account if you only want to transfer an existing isa.
Isa transfers take on average 15 working days to complete. I have done this countless times without an issue.

Kent Reliance have always been superb, extremely polite and helpful.

Thank you for the clarification. 
It's good to know that they provide a good service too.

hgt

Yes Kent Reliance are very good, I've had accounts on and off with them for years, I've always been happy with them. 

Like others have said, just open the account with them (don't deposit anything at the time of the application) but you can request the transfer of the Nationwide ISA as part of the application process. 

Kent Reliance seem to be pretty unique in offering a fixed rate ISA that does allow future deposits, certainly the only one I've come across. 

As for how the withdrawals work from the Kent Reliance fixed rate account if you've opted for monthly interest... If you close the account (or transfer the whole balance), they reduce your balance by an amount equivalent to 180 days of interest. If you're just making a withdrawal (or partial transfer), then you'll get the amount you request to withdraw, but they'll reduce the remaining balance by the relevant amount. 

paul235

Albermarle said:

There are a number of providers offering a two year fix with rates of 1.3% to 1.45% .

I have just transferred my NW loyalty isa to a fixed rate isa with Aldermore. It took about 5 mins to open it on line and apply for transfer of the NW ISA.

Does this require sending a signed transfer form by post?
Thanks

Albermarle

Does this require sending a signed transfer form by post?
Thanks

No I set up the transfer as part of setting up the new cash ISA online . Within one hour I had three e mails from Aldermore , one confirming the transfer process had started .

Albermarle

Like others have said, just open the account with them (don't deposit anything at the time of the application) but you can request the transfer of the Nationwide ISA as part of the application process. 

Kent Reliance seem to be pretty unique in offering a fixed rate ISA that does allow future deposits, certainly the only one I've come across. 

In the small print , the minimum opening deposit is £1000 and has to be paid within 7 days or the account is null and void .

On the second point , yes it seems unique to this provider that you can add to a fixed rate account during its term. 

Ljc80_2

So to be sure of getting the rate can you deposit £1k and request the transfer during application? I’m doing mine later...

SonOfPearl

kuratowski said:

Personally I kept my cash ISA in Nationwide but switched product to the limited access 1% product.  It's not the best possible rate, but for me the rate is adequate to deter me from changing providers (chasing round the market to a new provider every year is not something I enjoy doing).

If that is the 1 Year Triple Access Online ISA then I think the rate is being reduced from 1% to 0.4% as per the original MSE news story. 

DiggerUK

Ljc80_2 said:

DiggerUK said:

@Ljc80-2, 
it seems you like to seek advice, but not to take a decision. I have returned to your thread from 2017, to which I entered my words of wisdom.

Clearing the mortgage was a sound recommendation in 2017, it's even wiser advice now..._

...........Can i ask why you would clear the mortgage when more can be earned through interest in a safe, no risk ISA?

I would suggest you consider what trumps what. A no risk Cash ISA, with maximum inflation risk devaluing it on a daily basis, or a no risk roof over your head called a home that's paid for.

At these interest rates you are in a lose, lose, situation against inflation. How can you lose on a house that's paid for. 

Make a decision, you are doing exactly the same now as you were two and a half years ago, and going nowhere fast. Your call however..._

Ljc80_2

I have made a decision, as I did 2 and a half years ago.

Surely it’s wise to weigh up your options when rates change and ask for opinions on a forum designed for such. Apologies if this causes you distress!