Not paid interest on ISA for period between maturity date and transfer to new ISA provider

ab56

Anyone had experience of this?

Old fixed rate ISA matured on 25/4/23, had been given details of maturity and interest that would be added at end of term when ISA first paid into.

Opened new ISA with new provider on 12/4/23 and instructed them to transfer 'old' ISA to them when matured (on-line).  Also advised 'old' provider by their pro-forma form that intended to transfer the ISA out and who to - this was posted to them on 12/4/23 - never had to do this with other providers.  But advised them nevertheless.

New ISA provider sent letter dated 19/5/23 that they had contacted previous provider re transfer.

ISA eventually transferred 3/5/23 after phone calls with both old and new providers.  But no addtional interest.  

Would welcome other peoples' experiences and time lag?

TIA

TheBanker

What interest were you expecting? The old ISA wouldn't have generated any because it had matured. 

Cash ISA transfers are allowed to take 15 working days, yours was well within that timeframe. So I can't see that there's been an undue delay or that you're owed any interest. 

eskbanker

ab56 said:

Old fixed rate ISA matured on 25/4/23

[...]

ISA eventually transferred 3/5/23

The new provider should pay interest from 3 May, but interest would only be payable between 25 April and 3 May if the old provider had committed to pay interest during that period, within the maturity information supplied earlier, e.g. some will convert to an easy access account.

bristolleedsfan

Who was old provider ?

I have initiated complaint to United Bank ( UBL UK) on same subject being as they only informed me after maturity rollover had started that they do not pay interest during 14 day maturity rollover cooling off period if withdraw during that period.

https://forums.moneysavingexpert.com/discussion/6443259/possible-no-interest-paid-during-14-day-cooling-off-period#latest

ab56

Exactly!

But mine was not rolled over into new term as already instigated transfer to new provider.

bristolleedsfan

ab56 said:

Exactly!

But mine was not rolled over into new term as already instigated transfer to new provider.

What account info was shown within online portal whilst you were waiting for transfer out to be processed? Was it showing attracting 0.00% interest or was it showing same interest rate as during original fixed term?

bristolleedsfan

ab56 said:

Anyone had experience of this?

Old fixed rate ISA matured on 25/4/23, had been given details of maturity and interest that would be added at end of term when ISA first paid into.

Opened new ISA with new provider on 12/4/23 and instructed them to transfer 'old' ISA to them when matured (on-line).  Also advised 'old' provider by their pro-forma form that intended to transfer the ISA out and who to - this was posted to them on 12/4/23 - never had to do this with other providers.  But advised them nevertheless.

New ISA provider sent letter dated 19/5/23 that they had contacted previous provider re transfer.

ISA eventually transferred 3/5/23 after phone calls with both old and new providers.  But no addtional interest.  

Would welcome other peoples' experiences and time lag?

TIA

Much larger ISA I had with UBL UK, I had to post forms to new ISA Provider

31 March I posted forms special delivery to new provider at no cost to myself.

7 April New provider wrote saying opened account have contacted existing ISA provider.

24th April Maturity date  transferred out funds electronically


Second ISA as well as same maturity date I had with UBL UK i gave transfer instructions electronically to YBS on 21 April which YBS confirmed was sent to UBL UK the same day, transferred out on May 3rd.

Key factor is no interest paid from maturity date to transfer out date which was not mentioned within maturity reminder letter they sent out with maturity options.

My account dashboard showed account attracting interest @ 4.33%/ 4.00% AER due to automatic maturity rollover whilst awaiting transfer out.

Albermarle

TheBanker said:

What interest were you expecting? The old ISA wouldn't have generated any because it had matured. 

Cash ISA transfers are allowed to take 15 working days, yours was well within that timeframe. So I can't see that there's been an undue delay or that you're owed any interest. 

Yes, and in the 'old days' a transfer within 15 days would have been seen as a minor miracle. Most took many weeks .