Shawbrook Bank ISAs

macazon

I have just topped up my 5 year ISA (3 years left) with this years allowance plus a transfer in of a matured account taking the Shawbrook account to £87K and I also have another 5 year ISA with Shawbrook for 20k. My 5 year bond that I topped up is paying 2.3% so I thought it was worth taking the risk.
It was all very easy to do, I just send them  message via my account asking if i could do it and when confirmed, sent this years allowance and a request to transfer the ISA when it matured. The ISA appeared in the Shawbrook ISA the day after maturity.
I hope this is not all too good to be true and Shawbrook are OK. I have has account with Shawbrook previously and never had any trouble with them. 

Albermarle

There is no indication that they are not OK and they are often mentioned in comparison sites , on this forum etc . Also you are covered up to £85K and if something did happen they would probably be bought by another bank anyway .

It is just VERY unusual to be able to top up fixed term savings accounts at all , never mind  at an interest rate more than double than is available elsewhere.  

inspectorperez

Albermarle said:

There is no indication that they are not OK and they are often mentioned in comparison sites , on this forum etc . Also you are covered up to £85K and if something did happen they would probably be bought by another bank anyway .

It is just VERY unusual to be able to top up fixed term savings accounts at all , never mind  at an interest rate more than double than is available elsewhere.  

It would be good if someone with knowledge of the costs associated with banks accessing money deposits with which to lend out, could provide some input on this thread. Is it cheaper for Shawbrook to accept savers funds at a cost of 2.23% compared to other ways of attracting deposits in today's economic climate and bearing in mind the margins with which they are working?

Even though base rate is so low, I am sure there are other costs which banks must incur in obtaining funds.

In the case of myself and others contributing to this thread, we were all current Shawbrook customers with a legacy ISA investment product and there was no need for further product launch costs to attract new funds from us. Whether such costs are insignificant or not, I would have no idea!

Heidiho

I’m curious about this too and am wondering if it’s actually a mistake by Shawbrook. Could they perhaps have forgotten to update their system to prevent deposits being added to certain legacy accounts?

inspectorperez

Heidiho said:

I’m curious about this too and am wondering if it’s actually a mistake by Shawbrook. Could they perhaps have forgotten to update their system to prevent deposits being added to certain legacy accounts?

I suspect it's deliberate bearing in mind that Shawbrook topped the last league table I looked at earlier today (Source Moneyfacts) for a 5 year ISA at 1.1%. Depending on their lending book, I suspect the difference between 1.1% and 2.23% is fairly marginal and there should obviously be no introducers fees when dealing with existing customers.

The bank's latest accounts to 31 December 2020 should be available shortly, and it will be interesting to see the published results.

Hammer_Time

Hi All, does anyone know if they are still accepting transfers?

colsten

Only Shawbrook will know whether you can transfer into your particular ISA. Their CS is excellent.

Hammer_Time

Thanks for the info, I will give them a ring.

inspectorperez

Hammer_Time said:

Hi All, does anyone know if they are still accepting transfers?

You probably have your answer now, but just for reference, you can discover your account status by visiting your online portal on the Shawbrook website. If you click on "Accounts", you can then bring up your transaction history. There is a link on that page with a drop down box entitled "Account information". This will tell you whether your account status is active or closed.

I have just had notification that my maturing Santander ISA has just been received which takes me up to the £85K threshold for my Shawbrook 5 year ISA. I cannot speak highly enough of the efficiency of this bank and cannot believe my good fortune that I have been able to achieve this target at 2.23%.

Hammer_Time

Thanks for all your help, l phoned today and started my transfer, they told me issue 21 was still active for transfers but not all issues are.