Transferring ISAs within the same company

claire07

I recently transferred a fixed rate ISA from West Brom to Virgin and it took only a few days.  Unfortunately two weeks ago I then had a go with another couple of  ISAs with Kent Reliance and Shawbrook that were paying very little and thought it might be more straightforward to move them to the latest KR and Shawbrook 1 year FRISAs (taking the relevant penalty).

So I first opened the new ISAs online and filled in transfer documentation online (plus sent secure messages to confirm) and have heard nothing.  Trying to get through by phone is virtually impossible.  I can see both new ISAs in my online account with nothing in them yet.  Is this the norm when transferring ISAs within the same company or was I just lucky with the quick transfer to Virgin?

 

Malchester

I have transferred out of West Brom this week (to Gatehouse Bank) and the process was quick and electronic. I transferred a while ago from a UBL ISA to another UBL Isa and it was super quick and I didn't need to fill in any forms. As for Kent Reliance, I have given up on them because of their long call waits and poor customer service. I think it depends on the bank. I asked Buckinghamshire Building Society about transferring an ISA to their new offering but they said I had to start as a new customer and then complete transfer forms and pay the penalty. I am in the process of transferring elsewhere.

Albermarle

I am in the process of transferring from an Aldermore one year fix ISA (taking the 90 days penalty) to a new ISA with them.
I opened the new ISA OK ( no need to register as a new customer, which was an advantage of staying with the same provider) and requested the transfer. There was a huge drop down list of ISA providers, but no mention of Aldermore themselves, so I had to write their name in. Got an e mail acknowledgement and printed off the form, signed it, and sent it off. That was two weeks ago and have heard nothing, and checking the website the money is still in the old ISA.
I will give them another few days, before chasing. Hopefully any small interest loss will be backdated.

claire07

Thanks to you both.  It sounds as though it is very random whether it happens quickly or not.  My experience lately is the same as Albemarle in that opening the new ISA as an existing customer was fine but I had to complete a separate transfer form as the existing name was not in the dropdown list then radio silence ever since.  I'll give them till next week and have another go in the telephone queue if I've still heard nothing.

Marmaduke123

I wanted to do this with Kent Reliance too and asked them how to go about it. This was their reply:

"We would like to inform you that a withdrawal, closure before maturity date on a fixed rate ISA, the account will incur a penalty of 180 days loss of interest for a two year fixed rate cash ISA and 90 days loss of interest as penalty for a one year fixed rate cash ISA.

 

Please be aware that the penalty will still be applicable, if you transfer the funds within Kent Reliance or to any other provider.

 

If you wish to proceed further, we request you to send an application form by post to the below address with clear instructions agreeing to the penalty to the address mentioned below and upon receipt we will be able to action it accordingly.

 

OneSavings Bank, Sunderland, SR43 4AB

 

Alternatively, you may apply for an account online but the minimum opening deposit of £1000.00 has to be transferred from the external UK bank account. The minimum deposit is considered as current year subscription (2022-2023). Once the initial deposit is transferred and the account is active, we request you to call us on the customer services number or send us a secure message to move the remaining funds internally."

A bit clunky but I've duly sent the form off.

 

claire07

I hope that works with Kent more quickly for you.  I did a total belt and braces 2 weeks ago with Kent by opening the new ISA online, printing off the transfer forms and sending them plus sending a couple of secure messages confirming this.   Since then no contact whatsoever other than the new ISA appears online with nothing in it.  The same has happened with Shawbrook.  I realise they are both busy but I'm not very impressed with either of them.

I think in future if I need to do it again I won't try to transfer to another ISA in the same company but will transfer out to a different company.

isasmurf

I think you're unfortunate in the ISA providers you've chosen to do an internal transfer with. Internal transfers don't usually require a form in my experience. KR seems to be an outlier. With Shawbrook you only need to send a secure message to instruct the transfer. Sending a form may be the cause of the delay (but even so it should have been actioned by now).

All my internal transfers over recent years have been done through online banking. They have either been done as part of the opening process by giving an option to fund the account from an existing account showing in online banking, through the ISA transfer option once the account is open or simply by moving the money between ISAs as you would with any non ISA account [though it goes without saying that this last method shouldn't be used unless you know it to be that banks way of doing internal ISA transfers] .

Don't let this experience put you off internal transfers but perhaps do research what would be involved in actioning an internal transfer before deciding whether to do an internal or external transfer. 

Marmaduke123

claire07 said:

I hope that works with Kent more quickly for you.  I did a total belt and braces 2 weeks ago with Kent by opening the new ISA online, printing off the transfer forms and sending them plus sending a couple of secure messages confirming this.   Since then no contact whatsoever other than the new ISA appears online with nothing in it.  The same has happened with Shawbrook.  I realise they are both busy but I'm not very impressed with either of them.

I think in future if I need to do it again I won't try to transfer to another ISA in the same company but will transfer out to a different company.

I hope it works reasonably quickly! It's disappointing as KR were very efficient and timely with regards to everything concerning my late husband's cash ISA. Clearly a different department!

claire07

Just to update on my dealings with Kent Reliance about transferring my ISA.  I have today had a secure message to say the new ISA is unfunded and I can either pay in £1000 for the current year (don't want to do that) or send the completed application and transfer forms by post (I did that on 17th October).  Tried to phone and was 39th in the queue and after 40 minutes down to 20th and they close at 2pm today.

So I've had enough and sent an email raising a complaint and asking them to cancel the transfer and leave it in the existing ISA.  I'm sure I can find somewhere next week more easy to transfer my ISA to with less effect on my blood pressure!

Albermarle

Albermarle said:

I am in the process of transferring from an Aldermore one year fix ISA (taking the 90 days penalty) to a new ISA with them.
I opened the new ISA OK ( no need to register as a new customer, which was an advantage of staying with the same provider) and requested the transfer. There was a huge drop down list of ISA providers, but no mention of Aldermore themselves, so I had to write their name in. Got an e mail acknowledgement and printed off the form, signed it, and sent it off. That was two weeks ago and have heard nothing, and checking the website the money is still in the old ISA.
I will give them another few days, before chasing. Hopefully any small interest loss will be backdated.

Update.
This morning I received a letter from Aldermore, confirming the internal transfer had gone through. I could calculate that 90 days interest penalty had been subtracted from the one year ISA that I was transferring out from, although it did not actually say that in the letter.
Checking on line, I had a secure message from the 27th (no e mail received though to notify me) to say that the transfer had officially gone through on 19th (but that was not visible on line at the time)
So 
Requested internal transfer online on 13th October.
Posted signed form on 13th 
Officially went through on 19th apparently
Not visible online on 27th am
Secure message sent sometime on 27th and presumably visible on line after that 
Confirmation letter Nov 1st and all details OK online.

So all OK !