Virgin 1 Year Fixed Rate Cash ISA Exclusive now upto 1.76%

refluxer

justforlaugh said:

I regretfully opened 2-year fixed cash isa for 1.5% in April . Not sure if worthy to close that account (lost 90-day interests) and move them to this higher rate .

In this scenario, what I would like to know is - if you were to transfer out after a month in a 2 year Fixed Rate ISA like that and accept the 90-day penalty, is the interest earned so far the most they can take from you, or can they take the interest that the ISA would have earned in the first 90 days and subtract that from the balance, which would leave you with less than you put in ?

Worth confirming before you decide !

eskbanker

refluxer said:

justforlaugh said:

I regretfully opened 2-year fixed cash isa for 1.5% in April . Not sure if worthy to close that account (lost 90-day interests) and move them to this higher rate .

In this scenario, what I would like to know is - if you were to transfer out after a month in a 2 year Fixed Rate ISA like that and accept the 90-day penalty, is the interest earned so far the most they can take from you, or can they take the interest that the ISA would have earned in the first 90 days and subtract that from the balance, which would leave you with less than you put in ?

It'll be the latter, i.e. the penalty is the same whenever the closure/withdrawal is enacted and isn't reduced in the first 90 days, so yes, you can end up with less than you started with if you jump ship early on.