switch ISA from Santander to Natwest

col81

I have changed from santander to natwest for banking i want to switch my ISA to them I opened this in October 2022 and want to close it and move it to a Natwest one. The interest is paid annually so what would happen with that it was 2.2% so i expect i am owed around 1% (£100) give or take. How is this paid if i transfer the £10k i have in santander to natwest. these are the only savings i have 

eskbanker

If you close the Santander ISA then the accrued interest will be included within the closing balance, or if you leave it open the interest won't be added until the scheduled date.

ForumUser7

You would get the (2.2%/365) x days in your account x amount

If we say you opened it on 1st October 2022, and if the rate has remained at 2.2% and the balance has remained at £10,000 the whole time, excluding any penalties, you should be due interest of £105.21


(0.02/365) x 192 days x 10,000 = £105.21

So your expectation of about £100.00 is spot on 👍🏼

Band7

Are you sure your best choice is an ISA at all? If after reading this the answer is still yes, you should have a look at better rates since neither the Santander one you have nor Natwest are top choices, not by a long way.

col81

Band7 said:

Are you sure your best choice is an ISA at all? If after reading this the answer is still yes, you should have a look at better rates since neither the Santander one you have nor Natwest are top choices, not by a long way.

Hi, I have a current account with Natwest switched it for the £200. There credit card also looks good and i am approved for it if i want one. I simply have £10k i can tie up i know its a tiny amount but we all start somewhere. Not sure about any other options i may have. I also have a personal loan with Santander at 2.9% which i owe £11k on i have thought about clearing that but i would be very nervous with no savings to fall back on 

refluxer

col81 said:

I have changed from santander to natwest for banking i want to switch my ISA to them I opened this in October 2022 and want to close it and move it to a Natwest one. The interest is paid annually so what would happen with that it was 2.2% so i expect i am owed around 1% (£100) give or take. How is this paid if i transfer the £10k i have in santander to natwest. these are the only savings i have 

Is this an easy access ISA ? If so, you can transfer it without penalty but if it's a fixed rate ISA, then there will be a penalty to pay in which case you would need to do your sums carefully first.

Note that NatWest's ISA rates are poor - presuming that you wouldn't be moving to their 1% easy access cash ISA (which is not only derisory, but also lower than you currently have), their 1 and 2 year fixed rate ISAs (at 3.50% and 3.75% respectively) can be beaten by quite a large margin elsewhere, including the current offerings from Santander !

If you currently have an easy access cash ISA with Santander, a much better option IMO would be to transfer it into one of their fixed rate ISAs, if it's a fixed rate you're after. As you're already a customer, this could be done with very little effort.

Whatever you do, make sure you request the transfer from the new provider and let them move the funds - don't close the old ISA yourself.

col81

refluxer said:

col81 said:

I have changed from santander to natwest for banking i want to switch my ISA to them I opened this in October 2022 and want to close it and move it to a Natwest one. The interest is paid annually so what would happen with that it was 2.2% so i expect i am owed around 1% (£100) give or take. How is this paid if i transfer the £10k i have in santander to natwest. these are the only savings i have 

Is this an easy access ISA ? If so, you can transfer it without penalty but if it's a fixed rate ISA, then there will be a penalty to pay in which case you would need to do your sums carefully first.

Note that NatWest's ISA rates are poor - presuming that you wouldn't be moving to their 1% easy access cash ISA (which is not only derisory, but also lower than you currently have), their 1 and 2 year fixed rate ISAs (at 3.50% and 3.75% respectively) can be beaten by quite a large margin elsewhere, including the current offerings from Santander !

If you currently have an easy access cash ISA with Santander, a much better option IMO would be to transfer it into one of their fixed rate ISAs, if it's a fixed rate you're after. As you're already a customer, this could be done with very little effort.

Whatever you do, make sure you request the transfer from the new provider and let them move the funds - don't close the old ISA yourself.

That is great advice i have just checked and i opened it in August 2022. i recieved interest of £23 in October £22. To be honest i have a Santander loan/credit card/ISA and i only transferred to natwest for the £200 incentive i wish i hadnt of bothered now i would rather have just stayed with Santander for everything. I want to switch it back over my current account to Santander but dont know how to. Sorry to bore you all its was a greedy mistake 

refluxer

col81 said:
Hi, I have a current account with Natwest switched it for the £200. There credit card also looks good and i am approved for it if i want one. I simply have £10k i can tie up i know its a tiny amount but we all start somewhere. Not sure about any other options i may have. I also have a personal loan with Santander at 2.9% which i owe £11k on i have thought about clearing that but i would be very nervous with no savings to fall back on 

If £10k is your emergency fund (and all the savings that you have), then it probably won't make sense to tie it up in a fixed rate ISA because the penalties for accessing the money early can be pretty severe - typically 90 days-worth of interest for a 1-year fix and even more (120 days) with Santander.

As mentioned above, it may be that an ISA isn't actually the best option for you - have a read of this article on the Personal Savings Allowance which tells you how much interest you can earn before you start paying tax on it...

https://www.moneysavingexpert.com/savings/personal-savings-allowance/

I can see what you're saying about not wanting to have no savings to fall back on, however to me it makes no sense to have £10k saved while owing £11k elsewhere. Wouldn't it make more sense to work yourself out a plan to get that paid off in the coming months (and years if necessary), rather than leave it hanging over you ?

eskbanker

There's nothing that says you have to have all your products with one supplier, so just because you've switched your current account, there's nothing that says you have to move an ISA too, or loan or credit card, so you can leave everything else where it is if you wish.

There are occasionally prerequisites for accounts to be linked, e.g. a particular savings account with HSBC can only be accessed via one of their current accounts, but in general there are no such linkages, so you can pick and choose....