Paragon to Santander ISA transfer

edited 2 November 2022 at 7:16PM in ISAs & tax-free savings
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Band7Band7 Forumite
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edited 2 November 2022 at 7:16PM in ISAs & tax-free savings
Just thought I share my experience with transferring a fixed term ISA before maturity from Paragon to Santander. Due to early closure of the Paragon ISA, a 90 day interest penalty became due but I had worked out it would be worth paying the penalty as the Santander interest rate is double my Paragon one and I am only 4 months into the Paragon one. I am an existing Santander customer so already have online/app access.
  • Applied for the Santander ISA online on Saturday October 29. It got opened immediately and I could fill in the transfer request online
  • Paragon emailed me on Monday October 31 to say they had received a transfer request
  • Paragon emailed me this morning, November 2, to say my ISA has been transferred. The balance is indeed in my Santander ISA now. 
I am pretty impressed with the speed and ease of this transfer - all completed within 5 calendar days  :). I am also positively surprised with the penalty amount Paragon withheld. I had expected it would be 90 days of the full annual interest amount but they only withheld 90 of the 110 days interest I had accrued by the transfer date. All in all a really positive experience.

Replies

  • AlbermarleAlbermarle Forumite
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    I am also positively surprised with the penalty amount Paragon withheld. I had expected it would be 90 days of the full annual interest amount but they only withheld 90 of the 110 days interest I had accrued by the transfer da
    This does not make any sense.
    90 days interest is the same however much interest you have accrued.

  • Band7Band7 Forumite
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    You are of course right. I confused myself with an error in my spreadsheet - had used a 180 day penalty instead of a 90 day one.
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