Aldermore Maturity Question

inspectorperez

Have a one year fixed rate bond maturing in several weeks time. The maturity options have now appeared in my online account. Basically they are either to reinvest in a new fixed rate bond or return funds to nominated account, or a combination of the two.

What I would like to do is reinvest part in a new fixed rate cash ISA and the remainder in a new fixed rate bond. Nowhere can I see how to achieve this other than having £20,000 repaid to the nominated account and then reinvest in a new cash ISA. This seems to be a longwinded way of achieving what I want.

Has anyone else gone through this process with Aldermore please and how was it achieved?

Have sent secure question to the bank but I believe they are currently slow in replying because of work volumes.

wiseonesomeofthetime

I am assuming that, like me, you have saved in a standard, non-ISA, fixed bond, and have therefore been offered standard, non-ISA, savings options going forward.



If you had saved in an ISA Fixed Bond, then I guess you would have seen their ISA arrange in your maturity options.

It does look like you'll need to withdraw the funds to your Nominated Account, and then deposit them in an ISA of your choice, with any provider then, which could be to your advantage, assuming you have not used this year's allowance already.

May I suggest checking https://moneyfacts.co.uk/isa for possible options.

refluxer

If transfer to an ISA is not offered as a maturity option from a fixed rate account, I would just request for the £20k to be returned to your nominated bank account and the rest to be reinvested in your chosen fixed rate bond, then apply for the ISA separately once the funds are transferred. You'll be an existing customer so I can't see the ISA application process taking more than 5-10 minutes which will probably end up being less time than it takes trying to sort out a non-standard way of doing things

Note that despite being currently top of the 1 year Fixed Rate ISA table, there are better rates for standard fixed rate accounts available elsewhere at the moment, though.

ChainsawCharlie

Surely rates will rise again soon, so fixing a rate might not be the best option

Albermarle

I think this is normal from my experience with savings in other institutions. If you have a cash isa maturing, you will only be offered cash ISA possibilities, and if you have a standard account maturing you will only be offered standard account possibilities.

Albermarle

ChainsawCharlie said:

Surely rates will rise again soon, so fixing a rate might not be the best option

Whether they do or not, the difference between fixing now or in 6 months, is unlikely to have any significant effect on your finances, unless we are talking about very large savings. As you know compared to how investments move around, and the effects of inflation, these small amounts of extra interest are hardly worth worrying about.

inspectorperez

For the record and answering my own question, the official advice is to open the Fixed rate bond of your choice and then during the course of the 14 day cooling off period, open up a new Cash ISA account of you choice, and transfer in the required funds from the new Bond.

Simple as that.

ChainsawCharlie

I've noticed with Aldermore, if you have around £10,000 or more, and you choose to transfer out as a maturity option, its not long before they sharpen their pencil and email you with a higher rate.

wiseonesomeofthetime

Not got that much maturing with them.